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What do PPE (property per floor) charges count?2024-04-30T16:22:54+02:00

Les charges PPE, ou charges de copropriété, comprennent différents frais liés à l’entretien et à la gestion de l’immeuble en copropriété. La répartition de ces charges entre les copropriétaires est déterminée par le règlement de copropriété et est basée sur la quote-part de propriété de chaque lot.

Here is what PPE charges can include:
1. Operating costs: these are current expenses linked to the management and maintenance of the building. This may include concierge fees, cleaning fees for common areas, electricity and water fees for common areas, maintenance fees for green spaces, etc.
2. Maintenance charges: these charges are intended for the maintenance and repair of the common areas of the building. This may include renovation work on the roof, facades, elevators, pipes, etc.
3. Heating and hot water costs: if the building has a collective heating system, heating and hot water costs are shared between the co-owners.
4. Insurance charges: these are insurance premiums for the building, covering risks linked to common areas and private areas.
5. Administrative charges: this includes management costs of the co-ownership, such as management fees, costs of holding the general meeting, accounting costs, etc.

What are the rules for purchasing real estate by a foreigner?2024-04-30T16:22:39+02:00

The rules for purchasing property in Switzerland for a foreigner are governed by the federal law on the acquisition of real estate by persons abroad (LFAIE). According to this law, foreigners who wish to purchase real estate in Switzerland must obtain prior authorization which is issued by the competent cantonal authorities and aims to ensure that the purchase does not harm the interests of the country.

It is important to note that each canton may have its own rules and criteria for granting this authorization. In general, the criteria taken into account are the economic situation of the buyer, the intended use of the property (primary or secondary residence) and the impact on the local real estate market.

Additionally, there are specific restrictions for purchasing goods in tourist areas.

Some municipalities may limit the sale of chalets or apartments to people domiciled abroad. The net floor area of ​​the property must not exceed 200m2 and 1000m2 for the land.

However, it is important to note that foreigners can invest without limits in establishments such as hotels and restaurants.

What percentage of equity is required to purchase a second home?2024-04-30T16:22:26+02:00

The percentage of equity required for the purchase of a second home in Switzerland is generally 35% minimum. However, it is important to note that some banks may be more flexible.

You should also know that it is not possible to use your retirement funds (LPP) to purchase a second home. Acquisition costs must also be taken into account and added to equity. These fees are calculated as a percentage of the total value of the property and are mandatory (e.g. 3% in Valais, 5% in the canton of Vaud)

Who pays the brokerage fees, the buyer or the seller?2024-04-30T16:22:10+02:00

It depends on the mandate that was concluded. In the case of a mandate to sell a property, it is the seller who pays this commission to the agency/broker. It is important to note that the real estate broker can play a key role in the transaction by providing advice, negotiating the terms of the sale and facilitating administrative procedures.

Who pays the notary fees, the buyer or the seller and how much are these fees?2024-04-30T16:21:56+02:00

It is generally the buyers who pay the notary fees. The amount of fees may vary depending on the sale price of the property and the canton. As a general rule, notary fees are between 3% (Valais) and 5% (Vaud) of the sale price. For example, for the purchase of real estate worth one million francs, notary fees will amount to around 30,000 in Valais. These costs include the notary’s fees (approximately 0.8% of the sale price in Valais) which are linked to the drafting of the deed of sale and the management of the transaction, and the costs linked to the transaction such as transfer taxes (2.2% of the sale price in Valais).

What is an OIBT inspection and is it mandatory for the sale of a property?2024-04-30T16:21:43+02:00

The OIBT check, or ordinance check on low voltage installations, is an electrical check which must be carried out as part of a real estate acquisition if it has not been carried out in the last 5 years. It consists of checking the conformity of the electrical installations in the apartment or house, in order to ensure their proper functioning and safety. This inspection is generally the responsibility of the buyer and compliance is generally the responsibility of the seller, although there are no specific rules or laws on this subject. The cost of the ITTO inspection can vary between approximately CHF 200.- and 500.-, while the cost of any adaptations will depend on the work to be carried out.

What tax and other charges will I have to pay following the sale of my apartment or house?2024-04-30T16:21:25+02:00

As a seller, you will be subject to real estate gains tax. This tax is calculated on the capital gain realized on the sale of your property. The tax rate on real estate gains varies depending on the gain made and the number of years of ownership of the property. It is recommended to call on real estate professionals to help you estimate the value of your property and complete the real estate gains tax declaration. They will be able to guide you throughout the sales process and help you optimize your tax situation.

Why have my property appraised?2024-04-30T16:42:32+02:00

The valuation of your property by a professional is of capital importance. This allows you to get a clear idea of ​​the value of your property and display your property at the right price on the market. If you overestimate it, it risks remaining unsold for several months, and you will then be forced to lower the price, which will discredit your property in the eyes of potential buyers. You can also call on a real estate expert, which will allow you to justify the price to potential buyers, to have a complete financing file for the buyer and to predict the tax impact of the sale.

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