What do I need to consider before buying a house?

Is owning a home even right for me?

When it comes to owning your own home, there’s one key question to answer first: is this housing type actually right for you and your future plans? A home of your own obviously brings lots of benefits, but it also means making a long-term commitment.

We’ve summarised the pros and cons of owning your own home in a separate article so you can weigh this up for yourself.

Check financial feasibility

Once you’ve decided that you want to own your own home, you need to start by working out what you can afford with our mortgage calculator. Going through For Sale listings without knowing your budget can be a fun pastime and get you dreaming – but if you want to get serious, affordability is essential.

This means getting the so-called “loan-to-value” and “affordability” right. The loan-to-value ratio represents the percentage of your home financed by a mortgage and the amount of equity (your own funds) you contribute towards the purchase. In Switzerland, there is a requirement for you to pay at least 20% of the purchase price out of your own pocket. As a simple example, if you buy an apartment for CHF 800,000, you’ll have to put in CHF 160,000 (i.e. 20%) as equity; you can apply for a mortgage for the remaining CHF 640,000.

When your mortgage application is assessed, the affordability mentioned above is calculated. This means that the bank checks whether your salary is sufficient to cover the mortgage interest, amortisation and ancillary costs.

You can find detailed information about this in our separate article on equity and affordability.

Finding the right home

Once you’ve defined your financial limits, you’re ready to start looking for your new home. If you’re already sure about the city (or at least the region), you can go straight to the listings, set the appropriate filters and check what’s currently on the market. 

If you’re more flexible in terms of location, it’s a good idea to check out our property price index. It shows property prices for every municipality in Switzerland, giving you the chance to find a home that’s a good deal in an affordable area. 

Do be careful when browsing the sales listings: on all real estate platforms there are isolated cases of scammers creating a listing to try and get money out of you. Although these are quickly deleted, it’s better to be safe than sorry – if something sounds too good to be true, it often is. You can find more information on this topic in our safety information.

The property viewing

Once you’ve found a suitable house or apartment and arranged a viewing, it’s time to take a closer look at everything in detail. To prepare for this, first read the property listing thoroughly and make a note of anything that is unclear, so that you can ask questions during the viewing (it’s best to show it to someone who knows about real estate and can give you valuable tips on any obstacles, etc.). The information in the land registry office is also helpful. And if the property isn’t too far away, why not drive over there one weekend and take a walk through the neighbourhood? That way you can get an impression of the surroundings and see if they appeal to you.

For the viewing itself, make sure you arrive on time and dress appropriately: you don’t have to look like you’re invited to the Oscars, but making a serious first impression matters here, too. Also ask the person to whom you have already shown the listing details if they will go with you – two pairs of eyes are better than one, especially if they are expert eyes.

Now take a really good look at the entire building and take enough photos (if allowed) so you can go through everything again at your leisure. Don’t just check all the rooms; look at the building fabric, the roof, windows, heating and bathroom facilities too, if possible. Energy efficiency is also important, especially with regard to future renovations or refurbishments. That’s why you should also inform yourself about the renovation history and when which alterations were carried out.

In the case of a condominium, you should also find out about the renovation fund, i.e. how much are the regular contributions and how much money is currently available? For example, if a major roof restoration is due in the near future but the renovation fund is practically empty, you may have to reckon with an extra payment.

Last tip: think it through carefully, but don’t wait too long

Once you’ve found a suitable property, you’ll have to make the final decision for or against it at some point. It’s important that you think this through carefully. Talk to your family and friends too, and consider all the pros and cons carefully. But don’t put off making a decision forever – property is a sought-after commodity and there are probably other prospective buyers for your dream property. If you wait too long, there’s a risk that someone will snatch it from under your nose.

At the end of the day, your gut instinct is also crucial: if it feels right for you, it will be.