When two people are cohabiting and wish to buy a property together, there are some important things they need to consider. Unlike married couples, cohabitants are not considered legal heirs in the event of death. This means that if one of the cohabitants dies, the other will not automatically receive ownership of the property. To avoid any problems, it is important that cohabitants take the following steps before buying a property together: Draw up a cohabitation contract A cohabitation contract is a legal document that enables cohabitants to define their respective rights and obligations in the event of death. This contract can include clauses on property ownership, child custody, alimony payments, etc. Naming a beneficiary for the property If the cohabitants do not wish to draw up a cohabitation contract, they can name a beneficiary for the property in their will. The beneficiary will be the person who receives ownership of the property in the event of the cohabitant's death. Insuring the cohabitee A death insurance policy guarantees payment of a sum of money to the beneficiary in the event of the insured's death. This sum of money can be used to pay funeral expenses, settle the deceased's debts or purchase the property. By taking these steps, cohabitants can protect themselves in the event of death, and anticipate any potential succession issues. How can I protect my interests in the event of inheritance? In addition to the measures described above, cohabitants can also take certain steps to protect their interests in the event of succession. These include: Communicating openly and regularly It's important for cohabitants to communicate openly and regularly about their plans and wishes. This will help avoid misunderstandings and potential conflicts. Consult a notary In all cases, it is recommended that cohabitants consult a notary, who can advise them on the best measures to take to protect their interests. What about the 2nd pillar? In the event of death, the benefits paid depend on each pension fund and its regulations. By taking these steps, cohabitants can protect themselves in the event of death and avoid any inheritance problems.
Renewing your mortgage, the 6 most important points
Mortgages are contracts with conditions and deadlines. Sooner or later, you'll need to renew your mortgage. Renewing your mortgage, with the same or another lender, can help you make significant savings. We'll show you how to renew your mortgage in the best possible way, taking into account your financial situation, changing interest rates and market offers. 1: Estimate the value of your property A good starting point is to know the current value of your property. Banks, insurance companies and pension funds will take the same approach when analyzing a mortgage refinancing application. RealAdvisor is undoubtedly the best online valuation platform, enabling you to find out the value of your property in just a few clicks. The visit and expertise of a real estate broker can also be very useful, depending on the situation. 2. Analyze your current and future financial needs Before renewing your mortgage, it's essential to take stock of your financial needs, both in terms of your budget and your plans. Your situation may have changed since you took out your loan, and so may your needs. For example, you may need to increase your cash flow, reduce your monthly payments, finance renovation work or prepare for retirement. Depending on your stage of life, it may be a good idea to carry out some retirement planning and adapt your mortgage strategy to your goals and debt capacity. 3. The renewal of your mortgage is an opportunity to take advantage of fluctuating interest rates, which can vary considerably from period to period and from provider to provider. To get the best possible rate, it's a good idea to keep a close eye on market trends and anticipate the renewal of your mortgage. In this way, you can reserve an advantageous rate up to 18 months in advance, securing your financing and avoiding unpleasant surprises. 4. When you renew your mortgage, your current bank will probably make you a new offer, but you don't have to accept it without comparing it with the competition. In fact, there are many providers on the Swiss mortgage market who can offer you more advantageous terms, whether in terms of rate, term, flexibility or ancillary services. It is therefore advisable to request personalized offers from several establishments, and to compare them in detail. 5. Decide on the type of rate and term The choice of rate type and term are key elements of your mortgage strategy. There are three main types of rate (fixed, SARON and variable) and terms ranging from 1 to 25 years. Each option has its advantages and disadvantages, depending on your borrowing profile and your current or future situation. 6. Calculate the tax impact Maintain, increase or reduce your debt? To free up cash for renovations or to make pension buy-backs? What could be the best option? A tax impact assessment is essential. For careful analysis, advice and precise answers, we rely on our tax partner Dyn, who perfectly complements our advice on mortgage renewal.
Am I buying at the right price? Tips for assessing real estate value in Switzerland
Buying a property is often one of the most important financial decisions of your life, so it's essential to make a careful assessment before you take the plunge. In this article, we'll explore some practical tips to help you determine whether the asking price is truly representative of the property's market value. 1 Research local market prices The first step in assessing whether you're buying at the right price is to thoroughly research local market prices. Real estate prices vary considerably from region to region in Switzerland. Consult real estate statistics and market reports to understand price trends in the geographic area you're interested in. 2. Compare similar properties To determine whether the price offered for a property is reasonable, do an online valuation (we recommend the RealAdvisor platform) and compare it with similar properties in the same area. Look for properties with similar characteristics in terms of size, location, age, condition and amenities. This will help you assess whether the asking price is consistent with the current market. 3. Use a real estate expertHiring a professional real estate agent can be a wise decision when buying a property in Switzerland. An experienced agent can provide you with valuable information on the local market, evaluate the property according to specific criteria and negotiate to get you the best possible price. Their knowledge of the market can be a major asset in ensuring that you pay no more than the property's true value. 4. Take into account the property's unique featuresSome properties may seem more expensive - even overpriced - but they may offer unique features or additional benefits that justify the price. For example, panoramic views, easy access to public transport, lake access, nearby quality schools or exclusive amenities can increase the perceived value of the property. Take these elements into account. 5. Anticipate market trendsReal estate is also a long-term investment, so it's essential to consider how the market will evolve in the future. Consult projections and forecasts for the Swiss real estate market. If the region in which you wish to buy is booming or experiencing strong demand, this could justify a slightly higher price. Buying property in Switzerland at the right price requires a thorough analysis of the market, similar properties and the property's specific characteristics. Do thorough research, consult real estate experts and take long-term economic factors into account to make an informed decision. Remember that a well-chosen property can be a solid and lasting investment, and that a good balance between price and value is essential for success in the Swiss real estate market. To sum up: Do your research and know the average property price in the area you're interested in Be prepared to negotiate and be flexible on your budget Ask a real estate professional for advice Buy a house or apartment that suits your needs and budget Don't let emotions sway you For any questions or advice, please don't hesitate to contact us! Contact us now!
The keys to preserving your property in retirement
Retirement is an important stage of life and a time of change, and it can have a significant impact on your finances. In Switzerland, the question of property preservation during this period can be crucial. Here are a few tips to help you keep your property in peace once you've retired. Assess your future needs Before making a decision about your property, it's essential to assess your future needs. Ask yourself the following questions: - Do you want to stay in your current home? - Do you want to move to a less expensive region? - Do you want to move to a smaller, more practical home? By determining your priorities, you can adjust your plan accordingly. Plan your financial situation Financial planning is a crucial aspect of retaining your property in retirement. Take the time to review your income, expenses and savings to determine whether you can maintain your current standard of living. It may be helpful to consult a financial advisor or real estate expert to assess your options and develop a sound financial strategy. Study the tax implications In Switzerland, property and real estate taxes can vary from region to region. Find out about the tax implications of owning your own property in retirement. Some communes offer tax reductions for retirees, while others may apply higher rates. Take these factors into account when making your decision. Evaluate your mortgage If you plan to keep your property in retirement, it's vital to evaluate your mortgage situation. Consult an independent specialist to help you determine whether you can still afford to repay your mortgage in retirement. Anticipate maintenance costs Maintaining a property entails regular maintenance costs. It's important to factor these expenses into your financial planning. Renovation work, condominium fees and unforeseen repairs can put a strain on your budget. Set aside a financial reserve to cover these expenses, and assess whether you'll be able to afford them. In conclusion Keeping your property in Switzerland after retirement requires careful planning and a realistic assessment of your financial needs and lifestyle. Carefully assess tax implications, explore financing options and anticipate maintenance costs. By taking these key points into account, you'll be able to make informed decisions to maintain your property and enjoy a worry-free retirement in Switzerland. Advice from independent experts. Don't forget to consult professionals to help you through this process and offer you the advice you need to ensure a smooth transition to this new stage of your life.
Rental value news
Rental value - What are we talking about? You've probably heard about the National Council's acceptance of a new regulation concerning the rental value tax system on Wednesday June 12. However, efforts have been underway for several years to update the current taxation system, with numerous proposals that have so far failed. So, in concrete terms, what's changing this time? For the time being, property owners are taxed on a "notional" value, which is supposed to represent the amount they could earn if they let their property (hence the name "rental value tax"). In exchange, owners are entitled to deduct their maintenance costs and part of their mortgage debt, also known as "passive interest", from their taxes. Today, this system is seen as politically problematic, as it penalizes many homeowners, particularly those who are already drawing their pensions, or those who have already almost fully repaid their debts. With the introduction of the new law, taxation criteria would change as follows: Rental value will no longer be subject to tax, for both primary and secondary residences Maintenance costs will no longer be deductible from taxes The amount deductible for passive interest will be greatly reduced Work considered to add value to the property, and/or of an ecological nature, will be deductible from the tax on property gains (e.g.: installation of solar panels, heat pumps, creation of a swimming pool, etc.). However, before the new law can actually see the light of day, it still has to be approved by the Council of States and put to the Swiss people for a vote. The deadlines for these stages are not yet known, so it may yet take some time... For more information, please consult the articles at the following links: Federal Department of Finance RTS La Côte Historical parenthesis: did you know? The rental value tax was introduced during the First World War as an extraordinary tax, to compensate for a shortfall in revenue following the fall in customs duties during the war. Rental value tax was then reintroduced in 1934 in response to the economic crisis, with the aim of consolidating the Confederation's budget. This tax, originally intended to be levied only until 1938, was extended during the Second World War, before finally being enshrined as an ordinary tax in the Constitution in 1958. Do you have any questions? We look forward to hearing from you! Contact us now!
Early retirement? How to prepare
In Switzerland, the retirement system is based on two main pillars: the AVS (Assurance Vieillesse et Survivants) and the LPP (Loi sur la Prévoyance Professionnelle). Early retirement is an option available to Swiss citizens who wish to retire before the legal retirement age of 65. However, it can have consequences for pension benefits: AVS (1st pillar): The AVS is Switzerland's basic pension system, based on a pay-as-you-go principle. It provides a basic benefit to all Swiss residents and citizens once they reach legal retirement age, i.e. 65 for men, and 65 for women from 2024. If you choose to retire early, your AHV benefits will be permanently reduced. Since AHV retirement benefits are calculated on the basis of the contributions you have paid throughout your working life, if you retire early your future contributions will be reduced, which will have an impact on the amount of benefits you receive. The reduction varies according to the duration of early retirement, and can be as much as -30% for retirement at the minimum age, i.e. at the earliest 2 years before the legal retirement age. LPP (2nd pillar): The BVG is Switzerland's compulsory, funded occupational pension scheme. It is generally managed by employers and is designed to supplement AHV benefits. Employers and employees contribute to the pension fund, and these contributions are invested to generate returns and ensure appropriate retirement benefits. The BVG also allows early retirement, but the conditions and consequences vary according to the regulations of each pension fund. In general, early retirement under the BVG can lead to reductions similar to those under the AHV. You do, however, have the option of accessing your accumulated BVG capital in the form of an annuity or a lump sum, but the final capital will still be influenced by your early retirement. General consequences: Taking early retirement can have significant financial consequences. You need to ensure that you have sufficient savings to cover your needs during the period of early retirement, taking into account any reductions in AHV and BVG benefits. In addition, early retirement may affect your entitlement to social benefits and healthcare. We recommend that you consult an expert financial advisor to analyze your situation, evaluate your specific options, and make an informed decision based on your financial situation, your retirement goals and the specific rules of your pension fund. Make an appointment now!
Withdrawal or pledging of BVG/LPP: advantages and disadvantages
When you buy a property, obtaining mortgage financing is usually an essential step. One way of financing your mortgage is to consider withdrawing money from your 2nd pillar. However, before making a decision, it's important to weigh up the pros and cons of withdrawing and pledging your second pillar. Withdrawing from your 2nd pillar Withdrawing from your 2nd pillar is the most common way of accessing your money. You can withdraw all or part of your capital, but you will have to pay tax on the sums withdrawn. The tax rate depends on your tax jurisdiction. Advantages of second-pillar withdrawals: You have immediate access to your money. You can use the money to help finance the purchase of your principal residence, or to pay off some or all of your mortgage debts. Disadvantages of 2nd pillar withdrawals: You will have to pay tax on the sums withdrawn. If you withdraw your entire 2nd pillar, you won't benefit from any tax exemptions until you've repaid the amount withdrawn. This reduces your savings, which can have a negative impact on your retirement. Pledging your second pillar Pledging your second pillar is another option that involves pledging (or collateralizing) your assets instead of withdrawing them, depending on your income and your effort level on the bank's calculation. Advantages of pledging your second pillar: You don't have to pay tax on the sums withdrawn. You can continue to make tax-deductible purchases. You keep your retirement assets in your pension fund. Disadvantages of pledging your second pillar: Your income must allow for this solution (calculation of the effort rate), as the bank will "advance" you the amount pledged as collateral. Annual amortization may be higher Mortgage debt will be higher Which option to choose? The best option for you depends on your personal situation and needs. For example, if you need money now and don't mind paying taxes, a second-pillar withdrawal may be the best option. Or, if you need money for a long-term project and want to retain the tax benefits of the second pillar, then pledging the second pillar might be the best option. Withdrawing or pledging your second pillar is an important decision that needs to be based on your personal situation and needs. It's important to consult a financial advisor to help you make the best decision for your situation. Make an appointment now with one of our advisors! Contact us today!
How does part-time work affect your pension?
The BVG (Law on Occupational Pensions) and the 2nd pillar are part of the Swiss pension system, which applies to salaried employees and aims to provide financial security for workers and their families in the event of retirement, disability or death, as well as a continuous income in retirement. Here is some general information on the LPP and the 2nd pillar: 1. 2nd pillar (or LPP) The 2nd pillar is the compulsory part of occupational pension provision in Switzerland. It supplements the AVS (1st pillar) and is designed to enable workers to maintain their standard of living in retirement. In some cases, it also offers more extensive coverage and higher benefits for disability and death. It is implemented via pension funds (also known as pension funds or provident institutions) to which employers belong. 2. Contributions Employers and employees jointly contribute to the 2nd pillar. Contributions are based on the coordinated salary, which is a capped amount. Contribution percentages vary according to age and income. 3. Benefits The 2nd pillar guarantees benefits in the form of retirement pensions, disability pensions and survivors' pensions (in the event of premature death). Benefit amounts depend on the contributions paid, the duration of contributions, the pension fund and the terms of the contract. 4. Vestibility of rights Rights acquired under the 2nd pillar are said to be "vestible". This means that the funds accumulated in the pension fund belong to the employee, even if he or she changes employer or professional situation. Rights can be transferred from one pension fund to another when changing employer. 5. Retirement age The normal retirement age in Switzerland is generally 65 (following a referendum, retirement at 65 for women will take effect on January 1, 2024). If you wish, you can also take early retirement. In this case, be sure to consult your LOB contract to be clear about your benefits. 6. Choice of investments In some pension funds, employees may have a degree of control over how their contributions are invested. This may include options such as investment funds, equities, bonds, etc. 7. Tax regulations 2nd pillar contributions are generally tax-advantaged, as they are tax-deductible. However, pension benefits are taxable once paid out. 8. Revisions and developments The BVG and the Swiss pension system are regularly revised to adapt to demographic, economic and social changes. Adjustments may be made to contribution rates, benefits and retirement conditions. It is important to bear in mind that this information may evolve and differ according to new reforms and legislative changes. It is advisable to consult a financial advisor specialized in pensions for up-to-date information and a specific, personal analysis of your situation. Make an appointment
Understanding the basics of the 2nd pillar - BVG
The BVG (Law on Occupational Pensions) and the 2nd pillar are part of the Swiss pension system, which applies to salaried employees and aims to provide financial security for workers and their families in the event of retirement, disability or death, as well as a continuous income in retirement. Here is some general information on the LPP and the 2nd pillar: 1. 2nd pillar (or LPP) The 2nd pillar is the compulsory part of occupational pension provision in Switzerland. It supplements the AVS (1st pillar) and is designed to enable workers to maintain their standard of living in retirement. In some cases, it also offers more extensive coverage and higher benefits for disability and death. It is implemented via pension funds (also known as pension funds or provident institutions) to which employers belong. 2. Contributions Employers and employees jointly contribute to the 2nd pillar. Contributions are based on the coordinated salary, which is a capped amount. Contribution percentages vary according to age and income. 3. Benefits The 2nd pillar guarantees benefits in the form of retirement pensions, disability pensions and survivors' pensions (in the event of premature death). Benefit amounts depend on the contributions paid, the duration of contributions, the pension fund and the terms of the contract. 4. Vestibility of rights Rights acquired under the 2nd pillar are said to be "vestible". This means that the funds accumulated in the pension fund belong to the employee, even if he or she changes employer or professional situation. Rights can be transferred from one pension fund to another when changing employer. 5. Retirement age The normal retirement age in Switzerland is generally 65 (following a referendum, retirement at 65 for women will take effect on January 1, 2024). If you wish, you can also take early retirement. In this case, be sure to consult your LOB contract to be clear about your benefits. 6. Choice of investments In some pension funds, employees may have a degree of control over how their contributions are invested. This may include options such as investment funds, equities, bonds, etc. 7. Tax regulations 2nd pillar contributions are generally tax-advantaged, as they are tax-deductible. However, pension benefits are taxable once paid out. 8. Revisions and developments The BVG and the Swiss pension system are regularly revised to adapt to demographic, economic and social changes. Adjustments may be made to contribution rates, benefits and retirement conditions. It is important to bear in mind that this information may evolve and differ according to new reforms and legislative changes. It is advisable to consult a financial advisor specialized in pensions for up-to-date information and a specific, personal analysis of your situation. Make an appointment
Reduced income at retirement: what you need to know
Retirement is an important stage in life, and can bring with it financial challenges, particularly in terms of reduced income. In Switzerland, many retirees are confronted with this reality. To better understand this phenomenon, let's take a look at five important points to know about declining retirement incomes in Switzerland. 1. Assess your financial needs Start by taking stock of your current expenses, the expenses you plan to maintain in retirement, and any expenses you may have, such as healthcare costs (which can represent a significant proportion of income), housing costs and leisure expenses. This will let you know how much money you'll need each month to live comfortably. 2. The impact of inflation Inflation is an important factor to consider when planning your retirement. Over time, the cost of living increases, which can reduce the purchasing power of your retirement income. It's essential to take this increase into account and plan accordingly. Building up a savings reserve to cope with inflation can be a wise strategy. 3. Healthcare costs As we age, healthcare costs tend to rise. In Switzerland, retirees face rising medical costs, including health insurance premiums, medication and medical care. These expenses can represent a significant proportion of their retirement income. It is essential to anticipate these costs and include a budget allowance for health expenses in your financial planning. 4. Replacement rates The replacement rate in Switzerland represents the percentage of the last salary earned before retirement that will be guaranteed by the AVS and LPP. These rates are often below 100% and - according to the statistics - vary between 60% (on average) and 80% (according to the BVG). This means that retirees face a significant reduction in their income, which can have a significant impact on their lifestyle. That's why it's essential to take these figures into account when planning your retirement, so that you can adjust your spending accordingly 5. The 3rd pillar: supplementary pension insurance in Switzerland The 3rd pillar, also known as "individual pension provision", offers valuable opportunities for supplementing your retirement income. You can build up tax-efficient savings and guarantee financial security throughout your retirement years in Switzerland. It is advisable to consult a financial advisor to determine the best strategy for your personal situation and needs. 6. The need for financial planning The best way to cope with declining retirement incomes in Switzerland is to plan your retirement early and proactively. Start by drawing up a realistic budget, taking into account the various factors that will affect your retirement income and expenses. Maximize your second pillar contributions, consider additional savings solutions and diversify your sources of income to mitigate the impact of declining earnings. Conclusion Declining retirement incomes in Switzerland are a major financial challenge facing many retirees, but by taking steps to save for the 3rd pillar, plan your expenses, understand the BVG and, if necessary, carry out proper estate planning, you can cope with this situation and enjoy this period of life to the full.