Quick answer: In Eastern Switzerland, you need at least 20% equity. The location determines the long-term value of your property.
The problem
You have made your decision: you want to own a home. But then you are facing a mountain of questions. Which municipality is the right fit? Is your savings enough? And what should you look out for during viewings? In Eastern Switzerland, there are many options, which can quickly become overwhelming.
Where in Eastern Switzerland is it worth buying?
Location is the most important factor when buying property. It determines the price and the long-term value development. These municipalities are particularly popular in Eastern Switzerland:
- Wittenbach -- Quiet, family-friendly, and just minutes from St. Gallen.
- Niederteufen -- Rural yet well-connected. Ideal for nature lovers.
- Bischofszell -- Charming small town in Thurgau with attractive prices.
For any location, pay attention to three things:
- How far is the nearest train station or highway access?
- Are there schools, shops, and doctors nearby?
- Are new construction or infrastructure projects planned?
How much equity do I really need?
In Switzerland, the rule is: at least 20% equity. Of this, 10% must come from hard equity. Pension fund assets alone are not sufficient.
On top of that comes affordability. The bank calculates as follows: your annual housing costs may not exceed one-third of your gross income -- calculated using an imputed interest rate, not the current one. If you are short on equity, read our article on using pension fund and Pillar 3a assets.
What counts as housing costs?
- Mortgage interest (imputed at 5%)
- Amortization of the second mortgage
- Additional costs (approx. 1% of the purchase price per year)
What should I look for during a viewing?
Approach every viewing systematically. Do not let beautiful parquet flooring distract you.
- Check the building structure -- Are there cracks in the walls? Moisture in the basement? What condition is the roof in?
- Inspect the building systems -- When was the heating last replaced? Is there a heat pump?
- Consider energy efficiency -- What energy class does the building have? Double or triple-glazed windows?
- Ask about additional costs -- Request the actual utility bills from the last three years.
Are investment properties in Eastern Switzerland a good idea?
Yes, Eastern Switzerland offers good opportunities. Prices are lower than in Zurich, and demand for rental apartments is stable.
It is important that you calculate the return correctly. More on this in our article Is property a worthwhile investment?. If you are thinking bigger, our guide on apartment buildings as an investment covers everything you need to know.
Expert tip from Jessica: Obtain at least three mortgage offers. Interest rate differences can easily add up to CHF 15'000 over 10 years.
Conclusion
Buying property in Eastern Switzerland is worthwhile if you are well prepared. Take your time with location, financing, and viewings. At Rüttimann Vision, we personally guide you through the entire purchase process.