Buying a vacation or investment property

What factors should you consider regarding financing?

Different rules apply when financing vacation homes and investment properties. Find out what you need to know and how to plan correctly from the start.

Four steps to your vacation home

There are different rules for financing vacation homes than for a property you live in yourself.

  • Up to 60% of the property value can be financed with a mortgage.
  • Every year, at least 1% of the mortgage amount needs to be repaid.

We’ll calculate the optimum Ioan-to-value ratio and the affordability of your desired property during a consultation.

Taxes and charges may apply when you buy or sell your vacation home, e.g.

  • notary and land registration fees
  • property transfer taxes
  • property gains tax (if you make a profit on the sale)

Impact on your income tax

If you own a vacation home, the tax authorities add an estimated imputed rental value to your income. This imputed rental value is taxable in the canton where the property is located. If you rent out your vacation home, the rental income is added to your income instead of the imputed rental value. However, the mortgage interest and maintenance costs are tax-deductible.

Choice of financing

Vacation homes are often resold sooner than owner-occupied homes.
Decide early on how long you want to use your vacation home. It often makes more sense to opt for a short mortgage term, because if you sell the property before the mortgage is paid off, you’ll end up paying additional costs and fees.

Volatile prices

The prices of vacation homes can also fluctuate more dramatically than owner-occupied homes. We’ll help you by providing up-to-date information about the property market.

The correct financing will generally be a combination of mortgages with different terms and interest rates that best suit you and your objectives.

Extensive planning is important. You need to strike the right balance between what you’d like, your financial situation, and current interest rates. We’ll be happy to discuss what this could look like for you personally in a free and non-binding consultation.

In 2012 the Swiss electorate approved the second-home initiative. As a result, second homes can account for a maximum of 20% of residential property in any given municipality. No further permits for second homes can be granted in locations where this percentage has been exceeded.

We can advise you on the current situation at your preferred location and the impact of this rule on the local real estate market.

Four steps to your investment property


Real estate can be a solid component in your portfolio:

  • regular rental income
  • diversification of your investments
  • possible protection against inflation
  • potential increase in the property’s value


    Consider the expenses and other factors associated with owning an investment property:

    • management fees
    • costs of repair and renovation
    • the risk of a rental void
    • salability and resale value of the property

    There are different rules for financing investment property than for a property you live in yourself.

    • Up to 80% of the property value can be financed with third-party capital.
    • However, capital from private and occupational pensions cannot be used as equity.
    • The repayment amount must be at least 1% of the mortgage amount per year.

    We'll check the affordability of a multi-family home during a personal consultation.

    Owning investment property can affect your income and wealth situation.

    The tax authorities add the property's rental income to your taxable income. This rental income is taxable in the canton where the property is located.

    However, mortgage interest and maintenance costs are tax-deductible.

    Plan your investment in an investment property carefully. We're on hand to help you and can help with:

    • analyzing and reviewing your risk profile
    • analyzing and structuring your financial assets
    • developing an investment strategy that takes your real estate investments into account
    • calculating real estate income and changes in taxable income
    • determining the imputed cost of renovation
    • analyzing the financial impact of vacant homes
    • market information and detailed information on the municipality of the real estate location

    Mountain chalet or summer house by the lake?

    • Check of the purchase price based on reference properties and location
    • Comprehensive information on the municipality, price level and tax rate
    • Development of a financing strategy that suits you
    • On request: a mortgage decision within 24 hours

    Our experts are here for you – we look forward to speaking with you.

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