Are you thinking about buying property and wondering whether a house or a flat would be the better choice? Buying property, whether a flat or a house, needs careful thought. A mortgage is usually the biggest investment you will ever make. Here we set out some of the pros and cons, and we hope this helps you decide between buying a house and buying a flat.
In general, the decision to buy property – and whether to invest in a house or a flat – should be well considered, and a few fundamental questions should be taken into account.
Buying property – think about the long term
Are you a young couple looking for your dream property, with starting a family still ahead of you? Or perhaps you are close to retirement and thinking about where you would like to spend your later years? Depending on your age and circumstances, the decision between buying a house or a flat may turn out differently. Later in life you may not want to move again, and an accessible, step-free flat suited to older age may be a more likely choice than a large house spread over several floors.
Your budget
What is the maximum amount you are able – or willing – to invest in a property?
It can help to go to your own bank or another lender of your choice to analyse your individual financial situation in detail. Look carefully at how much capital you already have available and what is the most you can afford while still maintaining your usual standard of living. You should also bear in mind that your current circumstances can change quickly: are you planning to have children, or is a change of job on the horizon? All of this can change your outgoings.
Remember that in Switzerland at least 20% of the purchase price must be available as equity (Eigenmittel) in order to obtain financing.
Choosing a location for your property purchase
Also bear in mind that, whether you are considering a house or a flat, you will be more or less tied to the location of your property, including in relation to where you work. When buying property, factor in how far you are prepared to commute.
Living space – how much room do you have today, and how much will you need in future?
Consider your current and future circumstances. Children, parents, grandparents, pets or hobbies can all play a significant role. Are you planning to have more children, or is your family complete? Do your children still live with you, or have they already moved out? Do you and your partner have particular hobbies, so that each of you needs an extra room? Do you increasingly work from home, and does each of you need your own office? Take your time to answer these and many other questions.
Plan carefully and err on the generous side, rather than having to sell your property early because there isn’t enough space after all.
Have you taken the first step, looked closely at your finances and do you know your budget? Excellent! Then you can start your property search in the area you want. Depending on your budget and the location, buying a house may rule itself out, as the few properties on offer may be above your budget. If nothing suitable comes up, you may need to rethink your choice of location or look out for an older property. With little effort, an older property can often win you over with its charm and be renovated.
Hiring professionals for a renovation
Have you found a property that is a little older but fits your budget? Now all you need is the right people to carry out the renovation for you in no time. We at umbaumanager.ch have the right qualified tradespeople for any renovation, whether a bathroom renovation, new flooring, removing walls or redesigning spaces. Send us your no-obligation enquiry today.
Buying a property to live in or to let?
Another key question to ask yourself is: do you want to live in the property yourself, or are you looking for an investment – for example a flat you can let out to generate rental income? If you are looking for a property to live in yourself, you should definitely also listen to your heart when making your decision. If you live in a house yourself, you have complete freedom of decision and take on more responsibility, but you also have to take care of everything yourself, whereas with a flat there is often a property management company that handles many things.
Financing costs and running costs differ
As the owner of a flat, you are usually part of a community of owners and cannot simply make decisions on various matters alone; you have to agree them with your neighbours, for example if you want to change the colour of the façade.
People always assume that buying a house is more expensive than buying a flat. But if you look at current property prices, you will quickly see that even the smallest flat no longer costs much less than a house – depending on its size, of course. The location will also have a decisive influence on the purchase price. A flat in a sought-after district of a large city, for example, can be more expensive than a house in the countryside.
Don’t forget to include the additional costs of buying
If you buy a flat, you become a member of the owners’ association and, in addition to your share of the operating costs, you also pay a contribution into the association’s common fund. The rule here is often: the larger the flat, the higher the shared costs. As the name suggests, these shared costs are then used for common expenditure, for example when the roof or the façade needs renewing. In principle, though, you don’t decide such matters alone: all owners, including those of the other flats, must always approve external building work such as an additional balcony. So you are not free to decide on your own if you want something changed.
As a homeowner, you have to bear the costs of minor repairs or major new purchases entirely yourself, or hire a suitable tradesperson. Here, too, you are welcome to turn to umbaumanager.ch. As a house renovation company for complete renovations and more, we always have the right qualified tradespeople on our side.
This highlights a crucial difference from a flat. If the roof of a block of flats is damaged, the costs are shared among all the owners. If you own a house, you have to bear the cost of repairing the roof on your own.
As a flat owner you are only liable for your share, whereas as a house owner you always bear the costs alone. But as a homeowner you can decide many things yourself – unless a building permit application (Baugesuch) has to be submitted or your neighbour’s permission is needed.
Purchase price depends on the type of house
Choosing between buying a house and buying a flat is far more complex than it seems at first glance. The type of house may also influence your decision. After all, there is no such thing as just “a house”: there are end-of-terrace and mid-terrace houses, detached single-family homes and semi-detached houses…
The price will also depend on the type of house, and a detached single-family home is still likely to be the most expensive.
Purchase prices for flats vary too
With flats, too, the purchase price will depend on the type of flat. A flat with a higher standard of finish, its own sauna and a swimming pool on the roof or in the basement, for example, will cost more than a simple ground-floor flat in an apartment building without a lift.
How to proceed
Take your time to think things through and work out what matters to you in a property. Gather enough information, look at a range of houses and flats on offer, and then weigh everything up carefully.
If you value peace and quiet and don’t want noise from flats above or next door, you will probably be happier in a house. But if you don’t want to take on quite so much responsibility and would like a nice, manageable flat, buying a flat is probably the better option for you.
