Renting and leasing of real estate
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Sell or let?
Letting a property can be a sensible alternative to selling. Of course, an important condition is that there is enough private equity or income to purchase a new home. However, switching from using the property yourself to a third party using it can bring its own challenges. The bank and the tax office will apply new rules when you let a property you used to live in yourself. Talk to us. Our local real estate experts know the laws in your canton.
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Buy or rent?
The statistics show that buying is financially more favourable than renting. If you can afford it and if you find a suitable property, you should buy. It is also well known that all age groups want to own their own house – even the young “sharing economy” generation aspires to home ownership.
Most people who rent live nearer their workplace as a general rule, are more flexible about location if they need to move for a job and can move house if the neighbours or something else disturbs them.
As a home owner, you are likely to live in a suburban area or in the countryside. You have to accept longer journeys to work, and the cultural opportunities and the public infrastructure and transport links are not as extensive. But you have your own home. You need to be careful when considering condominium ownership as there are many rules which you need to read and understand. The finances also have to be arranged. Generally, the tax consequences are not an obstacle to buying property.
Avoid vacancies – RE/MAX understands.
As a general rule, the property manager will take care of this. Today, large management companies have specialised letting departments, and this greatly reduces the amount of vacancies. If there is no department specifically responsible for this, the usually very busy administrators also have to take care of lettings and often neglect the new lettings. Even if you are letting a property yourself, there is often no time to organise letting it out.
Optimise the letting of your property by appointing a professional real estate agent. Vacancies and other legal problems can thus be reduced when switching tenants.
Letting a property temporarily
Airbnb has radically changed the market and gives many owners new opportunities. However, some important questions need to be addressed for temporary rental:
- Are there cantonal or local authority regulations?
- Do the condominium regulations permit this type of use?
- Does the landlord have to be informed about subletting?
- Which taxes need to be paid? Is value added tax payable?
- Is the temporary letting classed as a commercial activity? This affects business income and has consequences for tax and social insurance.
- What happens in terms of financing as the property is no longer lived in?
- What are the consequences of the change in use?
These and other consequences have to be checked in specific cases.
Some of our real estate agents specialise in this line of business and offer additional services (e.g. cleaning services).
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