MikeS

Forgot to say: Firsly, you should go 'in season' which means either ASAP before Easter, or in July-August. The 'low' seasons are effectively April-June and September-Christmas, and you won't necessarily get he right impression.

Secondly, stay overnight in a valley town like Martigny or Sion, rather than the resorts. It will probably be cheaper and easier. Plus you'll be in a 'real' Swiss toen, rather than a tourist resort.

Hi MikeS,

mse4j449 is right to suggest you stay in one of the valley towns like Matigny or Sion as they are cheaper but if you plan to set up shop in one of the villages you need to see it from dawn until dusk and experience the "heartbeat" of the village. This won't be achieved by driving up for a few hours.

My wife and I stayed in both Sion and Nendaz and found the latter very helpful as you have more time to explore and get a feel for the place. If your going to look at setting up home in one of these places I'd think this is essential.

TopperT: I agree with you about staying, but my point was that they should consider doing the selection in 2 phases, Phase-1 would be stay in the valley and do a big tour of all the locations in a week, then make a shortlist and then Phase-2 would be to stay in situ in the 2/3 shortlisted resorts and speak to immobiliers.

For such a serious re-location exercise, as opposed to just choosing a holiday home, I just thought that they should take a look everywhere first.

Thanks for the advice. We are planning on going out beginning of April to have a look around.

Can people tell me what interest rate they are currently paying for a UBS Swiss mortgage?

1.9% the base rate plus 0.5% as it's a second property, equals 2.4%.

However, there is much more choice of mortgage types in Switzerland. It's common for people to 'mix-and-match' different types, and to have overlapping renewal dates. You need to take a look at the UBS web pages and then your Personal Banker will take you through the options.

Our experience was also that they assume you're responsible enough to handle saving for capital repayment by yourself. They'll be a nominal repayment sum quarterly with some mortgages, but the assumption is that you'll be knocking-off a significant chunk when you renew, from savings/investments that you're making in parallel. i.e. a lot like an interest-only loan.

That said, you'd have to be sure that taking out a Swiss mortgage is worth it. UK Offset mortgages may be a better bet if you're saving money, but can't commit to a standard monthly capital repayment. Remember that you'll have to pay legal fees of about £1,000 initially, and possibly an arrangement fee to the bank. Conversely, you'll probably get a personal account and debit card free with the mortgage, which is useful.

If you're in the useful position of not really needing a mortgage, or only a small one, you could consider arbitrage. i.e. borrowing at, say, 2.4% in Switzerland and investing at, for example, 4% in the UK. But this may only make sense for large sums and you have to be sure that the nett difference is worth it.

Our Capital Repayment is 25% over the 25 year mortgage term so as you say mse not huge.

Most mortgages unlike in the UK where you pay interest monthly, with Swiss mortgages you pay quarterly or even 6 monthly in some cases. Dont forget the morgage registration fee when calculating your costs of buying a place. This can be as much as 1.2 - 1.4% of the amount borrowed.

With the difference in the mortgage rates between the UK and Switzerland it makes sense to take advantage of the lower rate of a Swiss mortgage and borrow, while keeping your money in savings in the higher interest accounts in the UK even if you can afford to pay for the property outright.

HI TopperT & All
You are certainly a wealth of knowledge its great that you share so much with everyone. We are now in month 3 and have made the big decision to stay here. I have read alot of the other posts and would be really grateful for the name and contact of your bank in Sion. Do they speak English? It's a good point you have made about the canton closing down and not only that the prices here are going up up up. If people are serious they need to act quick.
If you could let me know how to contact you for the contact details that would be great.
Many Thanks
TAD

quote:

Originally posted by TopperT:
Hi Tad,

I agree there doesn't seem to be any catered chalets there. This maybe due to the maximum size of Chalet a foreigner can buy because of restrictions on land purchase resulting in the max number of bedrooms being 4 or possibly 5 at a push.

The area is really beautiful I know, we've been out both in the Summer and Winter so have seen both sides to Nendaz and cant wait to get back. The summer rental potential is huge and as per a post a while back I stated the average property used to rent for up to 40 weeks a year prior to their recession in the early 90's and the Swiss are returning to the Mountains with average number weeks rented currently increasing.

If you want me to put you in touch with our local constructor who maybe able to help you fulfill your dream please drop me a line through the thread A Place in the Sun lists Switzerland..... (website at top). As well as new build they may also know of re-sale properties as its KEY to buy top end property as these are what's renting out.

If you are looking to buy do it soon though Tad as the Commune of Nendaz/Veysonnaz looks like its closing down for 12 months. Also beware those offering you guaranteed rental, its a con you pay more for the property and they give you your own money back!!

Hi Mattc
Well you sound like a family after our own hearts. We moved to Nendaz in Jan06 and so are now moving into month 3. The lifestyle here is fantastic and everyone is very friendly but word of warning you need to speak at least some French. We have a 9year old son who is at school here and loving it. We did some preparation before coming and got him a private tutor but the school have been fantastic, he loves it and they have spent alot of time working with him on the language. There are 12kids in his class great eh. All of the children have welcomed him with open arms and he loves the skiing snowboarding life. Everyday when I open my window and see the view and know it is all worth it. We are quite lucky as we have an internet business however word of warning you will not get a residents permit to live unless you have a job or business here. And you therefore can only buy properties available to Foreigners if you do not have this, which there are limts on. The local commune are helpful but really I would avise going direct to the main commune office in Sion. We are in the process of registering our UK business with a Swiss division and have been given great help but it is not a fast process. The other warning I would give is that it is not like UK where you can set a business up for £150.oo you have to put un 20000CHF to start the business. Also I see alot of people posting about chalet business' take heed if you declare you are buying for a business you will have to place 50% deposit down not 20%.
We are very much still learning the rules and regulations out here but are determined to make this work. We love it.
Best of Luck
TAD

quote:

Originally posted by Mattc:
Hi all,

I'm after a little advice really.

My wife and I would really like to get into the Catered Chalet business, somewhere in Europe.

I'm 31 and run my own refrigeration business. My wife is a performance manager for the NHS. We have a 4 year old daughter.

Does anyone have any experience in selling up, purchasing a property and starting up a catered chalet business?

I've skied and snowboarded for nearly 15 years and my desperation to get out of this Country more apparent now than ever before.

I honestly have 0 idea about where to start, the pitfalls of engaging in such a venture.

I'm not really interested in tempory "seasonal" work. This is more about a lifestyle change. Would moving with our Daughter and trying to run such a business prove impossible?

Any advice and links would be hugely appreciated.

Hi we are going to be staying and are currently looking at extending our rental property or purchasing I am also looking at business opportunities. If you still need some help with your property let me know it could be interesting.
TAD

quote:

Originally posted by nendette:
Hi,
Can I just go back to the earlier discussion of Cantonal purchase tax as I'm confused: nobody has mentioned it to us in relation to our purchase of an existing chalet (i.e. not a new construction). I know about the ongoing taxes (taxe de sejour and the cantonal tax) and the notaires' fees (ouch - as a UK solicitor - not real estate though! - I want their jobs!) but not a one-off purchase tax which sounds a bit like stamp duty.

TAD if you want occasional work as a keyholder/concierge while you make your mind up let me know !!!

TAD: Our bank is UBS in Sion and our private banker (sounds grand, but he's a nice guy, good English and a fan of English football) was assigned through the branch. I think they try to match the banking rep to a village and/or certain immobiliers, and, obviously, the nationality. So I'd suggest you go through TopperT or the agent through whom you eventually buy, but I can always give you the email address of our guy if you want.

Hi TAD,

If you'd like to have the details of our Bank please go to www.alpinepropertyinvestments.co.uk and send me an email and I will give you the contact details.

I agree about the prices going up, a major part of it is the land costing more all the time as the building zoned plots get less and less.

Hi we have identified a potential property and are going to see UBS in Sion
Wish Me Luck
Thanks Again
TAD

quote:

Originally posted by msej449:
TAD: Our bank is UBS in Sion and our private banker (sounds grand, but he's a nice guy, good English and a fan of English football) was assigned through the branch. I think they try to match the banking rep to a village and/or certain immobiliers, and, obviously, the nationality. So I'd suggest you go through TopperT or the agent through whom you eventually buy, but I can always give you the email address of our guy if you want.

Hi TAD,

Re the site you mention I've come accross it before but almost all of the properties you see on there are selling apartments and chalets that do not have permits and are targeting the Swiss Market like our own UK Estate Agents.

By the way good luck with the property!

TAD: Our banker is Marc Gachnang of UBS in Sion. He runs the local youth football team and is a big fan of English football. It may be that he works more with just owners, rather than people running a business. But do mention our name, if it's him. Dave Gittins.

Hi Everybody,
I can't believe that it was nearly a year ago I started this string. I just thought I would up-date you all on the chalet business, well we made three trips to Valais to view properties then spent a two week stay last July. The figures just would not add up so we had to put our dream on ice, we were both disappointed but we are now looking for a holiday home. I suppose you never know what may be around the corner, If anybody would like any further information about our experiences just continue the string . Thanks Ian

Hi Ian,

Sorry it didn't work out for you, though I bet you had some great times in Valais while doing your research! Its such a beautiful place to visit both in the summer and winter as you know.

My wife and I bought in Nendaz last summer and the apartment will be ready next Spring, but it doesnt stop us popping over all the time. This is why we've set up our website to help others discover the beauty of the place and put people in touch with the local small constructors in the region.

Out of curiosity did you ever research buying a going concern such as a B & B? I assume you were looking to also take up a resident permit?

Hi TopperT,
We found a fantastic property in Anzere, but the size of property we required was out of our budget. The banks were very polite and helpful but the long and short of it is they would not come across with the money we required. It is a shame we loved the life style and the business plan was profitable, but these decisions have to be made I've even been looking for English speaking companies of which there are a few according to UBS Sion. But as of yet I have not found any !!!!. The property was going to be run as a catered chalet and yes I have all the resident permit applications, still check all the property sites to see what is available and I suppose I will end this with Never say Never.

Hi Ian,

Sorry to hear that it hasnt been successful so far. As you say never say never! Out of curiosity was the property you found in Anzere going to be a new build or re-sale? As you were applying for residency the choice of re-sale is a lot bigger as you dont need the permit. I'm also curious to know how many you were looking to cater for?

We have a chalet in Leysin that sleeps around 30 including owners for 1 million SFr which will need approx 150,000 SFr renovation work doing to it. If your interested its on our website.

Hi
with new chalet builds in Switzerland is the some form of guarantee?
What is the best way to exchange money eg pounds to swiss francs?
We are trying to buy in Saas fee any advise and did you have problems ref permits?
Many thanks

Hi boomboy,

Yes the constructor should give you a 10 year guarantee but this does not cover things like small cracks on internal plaster walls which can occur as the plaster dries. This is the same as here in the UK.

Re exchanging money, we've paid the deposit for our place through the Bank though will probably use XE.com next time as they seem a global operation and there appears to be no costs.

Permits is a tricky one. We are in the rota for our apartment and wont get ours for 2.5 years at least. We are buying in Valais where they've reduced the number from 310 per year to 250 to try and cool the boom that is going on. All I can say is make sure you dont pay a constructor/developer directly. Do everything through a Notary and this will ensure everything is above board.

One other tip which I've said on here before, dont get sucked into the guaranteed rental situation. They over charge you on the value of the property you are buying and then give you some of your own money back.

Hope thats of some help.

Hi TOPPER T
Many thanks for your very useful advice.

Boomboy

Take a look at our website 'www.laforet35.com' which has a link near the bottom to a page describing our experience with buying in La Tzoumaz.

I'd echo TopperT's statements: For money transfer, our UK bank offered competitive rates for larger sums, so we couldn't see the advantage of handing a large sum of money over to some obscure exchange company who might have disappeared for all we knew.
Ditto any claims about rentals - the clientelle for rentals seems to be prodominantly German and Benelux/Danish - they seem to book late and so rental income can vary with the quality of the season's snow. (Talking to various businesses, this season seems to have been exceptional in terms of visitors, so don't take it as the norm). If it's 'guaranteed', then you're probably subsidising it in some way.

Found this site via a search. Like some of the other posters we have just bought a chalet in Nendaz which we have been using since December. We looked in France initially (Portes de Soleil) area but found properties scarce and high prices per sq metre.

For th e first year we do not intend to let the chalet - but to enjoy it with family and friends. However this may change over time. Although it is early days we have been delighted with our purchase in terms of build quality, the general ambience, local facilities and ease of getting there from the UK.

Because of the foreign market opening up we did (and still do) have a problem with registration. Officially the property is still not registered in our names despite having paid all the cash, because of a huge backlog at the Swiss equivalent of the land registry. However the notary and local bank assured us that this was just a formality.

The builders of our chalet were Dumas - a local firm and although we have a few snagging issues the overall quality compares very favourably with our recent new build house in the UK.

We have just discovered the need to pay a tourist (taxe de sejour)tax. Does anybody know how we go about paying this - no one has contacted us about it and we would have carried on in the dark unless we had seen it mentioned here.

One other useful tip we found was regarding the hiring of ski gear - by using www.snowrental.net you can get circa 25% off standard prices and the quality is good.

Any other questions or queries pls ask.

Chris