The 5 most common questions when buying a property

Article from 22.05.2020

Buying your own property is a big dream for many people. As an investment in the future, property purchase is one of the biggest financial decisions in life. Regardless of whether the desired property is a condominium or a house, the considerations remain the same. As the world's largest real estate broker network, RE/MAX Switzerland has listed the five most important questions that you should definitely ask yourself before completing a property purchase.

1. Is now the best time to buy a house ?

Owning property is one of the safest investments available. However, not every moment in time is the best time to invest in a property. A property purchase is influenced by various economic and political factors. If you are currently asking yourself whether it’s the right time to buy a property or not, you should first of all check your own financial situation. Because regardless of the economy, property prices and interest rates, Personally it may or may not be the right time for you to buy and maintain an apartment or house.

2. What kind of property is right for me?

Depending on your wishes, needs and financial situation, you have to decide which type of home is right for you. We have listed the three most common types of properies for you to make your decision easier:

 

  1.  Detached house: This is a house that does not share a wall with another house.
  2.  Connected house: The row house is attached to another house on one or both sides of the house. There are semi-detached houses and town houses. Row houses are usually cheaper than detached single-family houses. However, the purchase price also depends on the neighborhood, the condition and the state of the property.
  3.  Condominium: In this case, you acquire one or more residential units in an apartment building. There are both condominiums in a high-rise and in a low-rise building..

3. Do I need a real estate agent to buy property?

Of course, you can find a house without the support of a broker, negotiate the purchase price and conclude a purchase contract. However, if you opt for advice from a RE/MAX real estate agent, you will benefit from their local real estate market knowledge, their access to a huge real estate network and their expert experience. The local broker can quickly provide you with all available information about the currently listed houses. All of this contributes to making the property purchase a positive experience for you. Above all, you as a buyer do not incur any additional costs for hiring a broker! So why take the risk of doing it without our expert advice?

4. What type of mortgage do I need?

There are several types of mortgages that you can choose from. To choose the right mortgage for you, you need to first know the difference between each type. In the following, we briefly present the two types of mortgage with their respective advantages and disadvantages:

 

1. Fixed-rate mortgage: With a fixed-rate mortgage, you agree with your lender on a set interest rate with a long-term fixed interest rate. This applies for the whole term of the mortgage.
 

Advantage: If interest rates rise over time you are not affected, since your rate is fixed.
 

Disadvantage: You also don't pay less if interest rates happen to decrease over time.
 

2. Variable rate mortgage: This type of mortgage gives you more flexibility. The interest rate is adjusted to the current market situation at a periodic intervals (usually every three months).
 

Advantage: If the interest rate falls, a larger part of your payment will go to the capital and less to the interest. This gives you more flexibility with regards to the mortgage term.

Disadvantage: If the interest rate increases, less of your payment flows into the capital and more into the interest. This makes the calculation of payments less predictable..

5. Should I buy real estate?

This is perhaps the most important and crucial question of all. Buying real estate is definitely one of the most exciting moments of your life, because it may be the biggest investment you will ever make. With a property you not only acquire a roof over your head, but also a place where you can live, eat, sleep, play and maybe start your own family. So make sure that you are well informed about the property market. Remember: you shouldn't buy property if you can't afford it. But if you have the financial resources, now is the time to become a property owner!

Short Summary

We at RE/MAX Switzerland hope that by answering the five most frequently asked questions about buying a property, we could make your decision for or against a property easier. There are of course many other aspects that you should consider when buying an apartment or house. Our real estate agents in your region will be happy to assist you at any time with their specialist knowledge. So that we can help assure the biggest investment in your life does not become a fiscal or personal nightmare, but instead a memory that you will look back on with fond memories.

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