In Switzerland, it is possible to buy the property of a single apartment present in a condominium building. This is a rather special form called EPP or Property By Floors. On the other hand, this is defined as a notary property of a floor, directly registered in the land register. What should we expect when buying a PPE apartment?
Make tax savings by buying a flat in EPP
When you occupy the role of mortgage client, know that your tax situation changes. For renovation, all the measures used to preserve the value of the apartment remain tax deductible. In principle, it was the tax authorities who determined that only renovation works provide added value compared to those preserving the value of the property.
In addition, you have the option to deduct the cost of buying items to replace the old ones with your taxable income. In general, it is the electronic devices, windows, doors, or even the renovation of the bathroom that can collect the tax deduction. To take advantage of this, it is advisable to space renovations by several years to achieve greater savings. Apart from the change of equipment, the insulation of the roof, facade and insurance premiums are eligible for the tax deduction.
Is the purchase of an apartment in EPP more advantageous?
Although getting a new apartment depends on your personal situation, living in your own home is always advantageous. At present, interest rates are low and favorable for the purchase of a flat in EPP. Thus, the number of households buying an apartment has also increased. However, this bonus remains revitalized by the increase in the price on the real estate market. Experts deduce that the higher the price of real estate in a city, the more interesting the rental.
However, buying an apartment in EPP brings privileges such as:
- to be able to make a pension, because you have only your pension when the repayment is finished;
- put the property on lease at any time for the purpose of generating additional income;
- independence from rental income as you are the owner;
- obtaining a capital contribution for your children during the inheritance.
The criteria to be taken into account when buying a flat in EPP
If you want to have your own apartment in EPP, you have to consider several criteria such as the mortgage interest rate and the purchase price. Therefore, you need to look at:
The renovation fund
These funds include the contributions made by the co-owners to pay for repairs and maintenance of the building. As a co-owner, you must participate in these community costs.
The charges depend on the age of the dwelling and its condition. Often, it is your job to include rental charges ranging from 0.7 to 1%.
The shock absorbers
Depreciation, you must reduce the debt from time to time, especially in the case of a loan repayment. The procedure remains simple since it is sufficient to calculate the amount with 1% of the total sum of the contract of the bank loan per year.
Sanitation and renovations
It must provide 0.3% of the value of the property to deal with the depreciation of the apartment following the various ravages over time. This percentage comes down to renovations and renovations.