A house or condominium means change.

Financial circumstances and obligations will change overnight. With this step, comprehensive planning is important. First of all, it is important that you find the right financing model for you. Even if you do not build or purchase at once, there are always exciting options for you to go for. For instance, did you know that value-preserving investments and renovations can be deducted from tax? A planned course of action concerning real estate is always worth it.

Whilst the USA is already more advanced in normalising monetary policy, this has not really started in the eurozone yet. The European Central Bank (ECB) has, however, recently concretised its plan to terminate the bond purchase programme. A slightly more restrictive policy of the ECB also leaves room in the medium term for the Swiss National Bank (SNB) to consider a first interest increase, especially since the overvaluation of the Swiss franc against the euro has deeply decreased in recent months.

For the SNB to actually increase the base rates next year, however, the Swiss economy will need to be completely recovered from the franc shock. In addition, the weakening of the franc must prove to be sustainable and the announcement of the ECB to terminate the bond purchase programme next year must be implemented.

At the moment, we assume a first interest increase by the SNB at the end of 2018. After that, we expect further interest inceases by the National Bank not earlier than the second half of 2019.

This is exactly why it is so important to find suitable financing, so as not to suddenly come under pressure from global developments. We can offer you mortgage interest rates on market-leading terms. From a tax perspective, it is important to mind the balance between imputed rental value and mortgage interest. Another important consideration is the issue of the type of amortisation, direct or indirect. With indirect amortisation via the third pillar, additional tax savings can be achieved in this situation.

We will provide you with independent advice with a holistic approach on how to optimally finance your home, in the following areas:

  • Real estate and location search
  • Real estate valuation
  • Selection / optimisation of financing model
  • Margin optimisation
  • Selection / optimisation of the type of amortisation
  • Optimum ratio of imputed rental value / debt interest (tax optimisation)

We will accompany you as fully independent advisors with a holistic approach from the very beginning. To this end, VPZ will offer uncomplicated and tailor-made support just for you.

Michael Bischof Beratung & Projektplanung der VPZ Vermögens Planungs Zentrum AG

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