Many people dream of a home of their own. But the question soon arises: should you build a house yourself, or is buying an existing property also an option? In this short guide we set out some of the pros and cons to help you decide. Already made up your mind? Great – then we at umbaumanager.ch, your house renovation company, can help you straight away. Whether it is the building permit application (Baueingabe), house renovation advice or a complete renovation, don’t hesitate to get in touch – we will support you fully with your project.
The current market
Property prices in Switzerland are still rising. Many prospective homeowners rightly ask whether building a new house is still worth it at all. If you want to build your own house, you first of all need building land. That raises the next question: where should your dream home be? Do you prefer the countryside, or would you rather be close to a town? Once you can answer that, you will almost certainly face your first problem: building land in Switzerland is scarce and becoming ever scarcer, especially in sought-after locations.
In town and city centres there is hardly any vacant building land left, and where there is, it is only affordable with a substantial budget. It may therefore be wise, in areas close to towns, to include existing properties in your search for your dream home. In the countryside things can look quite different: there are still some reserves of building land here. But prices have risen steadily here too.
Building a house involves a great deal of work
Generally speaking, building a house is more expensive than buying an existing one. A new build does require a large investment up front, but everything will be up to date for years to come. You won’t need to think about renovation costs or refurbishments.
With a property that is a few years older, there will usually be investments needed in and around the house. You should definitely factor this in when buying an existing property. And if you have your own ideas about how it should look, you won’t get around building them into your budget, because renovation work – whether a bathroom renovation, a kitchen refurbishment or simply choosing new flooring – can quickly become expensive. You should also bear in mind that investments in an older building do not always increase its value. In most cases they maintain the value and do not necessarily lead to a higher resale price.
Building a house depends on various factors, for example your own funds (equity), your income and also how prices are developing in the market where you want to live.
Advantages of building a house
- Maximum freedom of choice for the interior and exterior design
- Everything is up to date, so no renovations are needed for the time being
- Higher market value than a comparable older property
- An owner-occupied property has a practical value: you can live in it
- As a property owner you pay no rent, but you do have to cover the financing instalments
- Given how prices have developed, you can expect the property to increase in value
Building a house – what are the hurdles?
It can be very tempting to put your own ideas into practice: to shape everything from the ground up, lay out the rooms and, in your mind, probably already be furnishing them. But be careful: building a house should never be underestimated. There are a great many decisions to make – where each socket should go, how the windows should be fitted, which heating system makes sense and, finally, fitting out the entire interior. That can be quite overwhelming.
You will also need your imagination for some things, as you can only form a picture from visualisations. A new build also requires a great deal of planning and, above all, time. You can’t expect to move in the day after tomorrow. Countless discussions with architects, builders and planners await you, and above all there will be bureaucratic hurdles: once you have decided to build, you also need to obtain the approvals before work can start.
umbaumanager.ch can also help you build a house
If you don’t yet have a clear idea of how building your house could work, you can also turn to umbaumanager.ch. We will also build your dream property for you, tailored to your wishes. Get in touch with umbaumanager.ch today and we will clarify the next steps for you.
Disadvantages of building your own house:
- Costs can only very rarely be calculated precisely
- Construction can be delayed
- Relocating because of a change of employer is no longer straightforward, so your mobility is more limited
- If you sell a property, allow plenty of time, as a sale can often take several months
- As the owner, you are responsible for renovations, refurbishments and maintenance yourself
Building a house in the current low-interest phase
For mortgages in Switzerland, the key rate set by the Swiss National Bank (SNB) is what matters. Interest rates fluctuate over the years, so it pays to plan your financing carefully. When interest rates are low, it can certainly be affordable to accept a higher property price, especially if the buyer opts for a long fixed-rate period.
Buying an existing house saves stress, time and money
The costs of buying a house are easier to keep track of than those of building one. The purchase price is fixed and you know what you are letting yourself in for. Especially if only minor renovation is needed, you can move in soon. But houses in need of renovation can also be cheaper than those that have been kept in very good condition.
Buying an existing house – what are the advantages?
- The purchase price is clearly defined, and renovation costs can be included in your financing plans
- Usually cheaper than a new build
- Often ready to move into straight away
- Less effort
If you decide to consider buying a house, you can say that by purchasing an existing property you get a finished home. You no longer have to do all the planning that building a house would involve. Of course, you can still make adjustments and changes to an existing property exactly as you wish, but the basic framework is already in place. The advantage here is that you can view the property and get an accurate picture on site.
Houses in need of renovation can also be worthwhile
While building a house calls for imagination, an existing house is easy to view. If you decide to buy, you can usually move sooner as well. If the property needs a little renovation, you may even find a real bargain. The condition of a property has a major influence on the purchase price, and with a bit of luck you may be able to save some money here. That money can then go straight into renovation work. An older building can also have real charm, depending on what you prefer – very modern and minimalist, or a mix of old and new.
Disadvantages of buying an existing house
- Finding a property that suits you can take some time
- Costs for any refurbishment, renovation or maintenance can quickly add up
- Less design freedom than if you build your own house
Key questions to help you decide
Whether you decide to build or buy a house naturally depends on your own situation and needs. There are many questions you should ask yourself beforehand. How flexible are you – could you accept an existing floor plan? What type of property suits you? Do you prefer a detached house, or would a terraced house with a somewhat smaller garden, or even a semi-detached house, also be fine? How much equity do you have available for buying or building a house? Could you make compromises on the way to your dream property in order to reduce costs?
These and many other questions can help you get clear about what is actually right for you.
umbaumanager.ch helps you build a house or renovate an existing one
In principle, you shouldn’t rule out buying a property straight away, as the property market offers everything from stylish terraced houses and detached single-family homes to luxurious villas – whether in the end you decide to build a house from scratch or would rather buy a “pre-owned” property.
We at umbaumanager.ch can help you both with building a house and with renovating an existing property. We are renovation experts and have the right tradespeople on our side, who will reliably carry out your work – and you will be satisfied at the end. That’s a promise.
