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Step 1: How Much Can I Afford to Spend on Buying My Home?
Are you dreaming of owning your first home but don't know how much you can afford to pay for it? Our tips will help you calculate, simply and quickly, the optimal amount you should invest.
Rent or Buy? You Should Be Aware of Two Simple Rules of Thumb
the additional living costs that you need to consider. These can often be justified by the higher quality of construction of owner-occupied apartments and houses compared to rental properties. However, you should observe the following rules:
1.
Purchase price:Ideally this should not exceed five times the amount of your own funds (assets in the form of savings or securities, second or third pillar pension capital, insurance policies with a surrender value, etc.) and approximately five-and-a-half times your gross annual income.
2. Housing costs: In general, these should not exceed one-third of gross income.
If your first home costs CHF 500,000, you should therefore have CHF 100,000 equity and a gross income of CHF 90,000. You can find a detailed example of an affordability calculation here.
Two Helpful Calculators: Mortgage Calculator and Budget Calculator
Use our Mortgage Calculator to check simply and quickly whether a property is within your financial means. The Budget Calculator will make it easier for you to achieve your savings goals.
No-Obligation Home Ownership Consultation from Credit Suisse
For in-depth individual advice, we recommend that you take advantage of Credit Suisse's
no-obligation home ownership consultation.
Once you have a precise budget in mind, you can then concentrade on looking for your dream home.
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