1. Failing to accurately assess your financial capacity

The first step to a successful property purchase is to understand and accurately assess your financial capacity. Swiss banks require a downpayment of at least 20% of the purchase price, of which 10% must come directly from the future owner's savings. The remainder can be drawn from professional or personal savings. In addition, the costs associated with the purchase, including mortgage interest and maintenance costs, must not exceed 33% of gross annual income. Failure to meet these criteria may result in a refusal of financing or in post-acquisition financial difficulties. To avoid these pitfalls, it is advisable to define a precise budget, including all mandatory costs such as notary fees, land registry fees and taxes on any pension fund withdrawals. These costs can vary greatly depending on the canton, the sale price and the amount of the mortgage.

2. Not clearly defining your needs

Once you've established your financial capacity, it's essential to clarify your housing needs and desires. Ask yourself the right questions about the property you want to buy. Apartment or house? New or old? What's the minimum floor area? How many rooms? This process requires careful consideration of current and future expectations. Buyers often have many requirements at the start of their search, but these criteria tend to evolve with each visit. To avoid getting lost, it's a good idea to draw up a structured list of requirements, dividing them into three categories: must-haves, optional extras and items to be avoided at all costs. This method enables you to stay focused on the essentials and optimise your visits, by targeting only those properties that really meet your expectations.

3. Neglecting the importance of location

Location is a determining factor in the future value of a property. It has a considerable impact on the quality of the living environment and therefore the quality of life, and can increase the resale value of the property. It is therefore crucial to choose a neighborhood or area that not only meets everyday needs in terms of proximity to public transport, shops and schools, but is also conducive to long-term appreciation of the property's value. Here too, you need to think carefully about your current and future needs. Before finalising a purchase, it's a good idea to assess the local infrastructure, accessibility, current urban planning projects, as well as the reputation of the neighborhood. It may also be wise to consult a local property expert who can evaluate whether the price matches the market value. A thorough review of these factors can make the difference between a good investment and a regrettable decision.

4. Underestimating maintenance and ancillary costs

There's more to buying a property than just the asking price. There are many additional costs to consider, such as maintenance and other potential expenses. For example, as the owner, you need to be able to cover the costs of a new roof or the installation of a new boiler. What's more, you'll also have to pay for ancillary costs such as water, electricity and heating. For condominiums, there is usually a renovation fund. This fund, to which all co-owners contribute, is used to finance renovation, maintenance and repair work on the building, if necessary. To avoid unpleasant surprises, it's advisable to find out the amount of the building's renovation fund, and to review the minutes of the last 3 general meetings of the co-ownership.

5. Not comparing mortgage offers

Mortgage financing is a fundamental aspect of home buying. Many buyers settle for the first offer from their bank without comparing the other options available on the market. However, there are many different financial institutions to choose from, and the differences in interest rates can be considerable, which can have a significant impact on the annual cost of the loan. It is therefore crucial to compare several offers and, if necessary, to call in a financing specialist who can not only negotiate the best mortgage rate, but also optimise the buyer's tax situation.

6. Not taking interest rate fluctuations into account

Interest rates can fluctuate significantly during the term of the loan, impacting mortgage repayments over the long term. If you opt for a Saron rate, you'll need to be prepared for possible increases that could add to your monthly expenses. For those who prefer stability, a fixed rate, though slightly higher, can offer peace of mind over 5, 10 or even 15 years. It is therefore essential to evaluate the different scenarios to ensure the long-term viability of the investment.

7. Not keeping up with the real estate market

The Swiss real estate market fluctuates to a greater or lesser extent from region to region and from period to period. Buying a property without taking local market trends into account can be risky. It is therefore advisable to find out about local market trends and consult experts to determine the best time to buy.

8. Not inspecting the property

Before finalising the purchase, it is essential to have the property inspected by an expert (such as an architect). This step is particularly crucial for older properties, as it may reveal hidden defects that would require costly work. A thorough inspection not only allows you to negotiate the price, but also to budget for possible renovations.

9. Neglecting legal and tax aspects

Buying a property in Switzerland involves numerous legal formalities and can have significant tax implications. It is advisable to consult a specialist, such as a notary or a real estate lawyer, to ensure that all legal steps are correctly followed and that the buyer is protected against possible disputes. A tax advisor can also help to understand all the implications of the purchase and identify possible optimisations.

10. Failing to enlist the help of a financing specialist

Finally, trying to manage a real estate project alone can prove costly in terms of time and money. A real estate financing specialist can not only obtain the best mortgage conditions, but also accompany the buyer every step of the way to optimise his or her financial and tax situation. Their expertise can often identify opportunities for substantial savings, while advising you on certain administrative aspects such as BVG-LPP/3a withdrawal or coordination with the bank or notary.

Buying your first property is a complex process that requires careful preparation. By following these ten tips and enlisting the help of experts like those at Resolve, you can avoid common pitfalls and turn this ambitious project into a long-term success, or even a financial opportunity. Since every situation is unique, personalised guidance is often the key to guaranteeing peace of mind and maximising the chances of success.