Real estate Mortgages to buy land: tips for buying a plot of land
In almost all cantons there is still enough building land for sale to be able to realize your dream of owning a home. Read our tips on how to find and successfully buy the right plot of land.
Content:
Content:
- Financing land for construction
- Building land in Switzerland
- How much does building land in Switzerland cost?
- What should I pay attention to when buying a plot of land?
- To the conclusion
If you want to build a house but don’t have your own plot yet, you must find and purchase one. Choosing your plot carefully is at least as important for your quality of life as the design of the building, and is central to the overall price of the property. You’ll find answers to frequently asked questions on the topic of building land in the following article.
Financing land for construction – what you need to know
Financing land for construction – what you need to know
If you want to buy a suitable plot of land, you should consider a few points in advance. This includes requesting certain documents before making the purchase. These are:
- Cadastral maps
- Building regulations
- Risk maps
- Extract from the land register
Note also that land for construction in Switzerland is usually sold in a bidding process. This means the land will only be yours if you are the highest bidder. Once you have agreed the price with the seller, they will order a draft contract from the notary’s office. You should check this carefully and, if necessary, negotiate change requests.
As a rule, a mortgage is also needed to purchase building land. However, most banks require a specific construction project for this. Therefore, be sure to plan well ahead and provide concrete construction plans.
What is the most I can pay for my home?
What is the most I can pay for my home?
Easily calculate the size of your mortgage and the monthly costs.
Where in Switzerland is there available building land?
Where in Switzerland is there available building land?
In the canton of Valais, 33 percent of residential building zones have not been built on, which is the highest rate in Switzerland. In the cantons of Geneva, Vaud and Neuchâtel, many residential zones – up to 25 percent – are still undeveloped. In most cantons in German-speaking Switzerland the reserves are smaller, up to a maximum of 12 percent, of which Basel City has the lowest amount of undeveloped land.
How has the buildable area changed?
How has the buildable area changed?
The total buildable area in Switzerland has hardly changed in the last five years. The exceptions are: in the cantons of Zug and Bern, 1.5 and 1 percent respectively of the buildable area has been rezoned and released for development. And in some parts of West Switzerland, large areas were dezoned or rezoned, meaning land was assigned a new intended use. For example, this includes industrial land which was rezoned as residential, or vice versa if the area was dezoned.
Building land in Switzerland in figures
Building land in Switzerland in figures
- Building zones make up only 5 percent of Swiss territory
- 46 percent of building zones are residential
- 16 percent of residential building zones are undeveloped and are available for construction
Where can new zones be expected?
Where can new zones be expected?
The available residential building zones should be sufficient to meet demand over the next 15 years, according to the Federal Act on Spatial Planning. According to a study by UBS’s Chief Investment Office, there is surplus capacity in several cantons, especially in West Switzerland. There is a greater need for new zoning, i.e., for additional land to be assigned to building zones, in particular in the cantons of Zurich and Aargau.
The building loan for your project
The building loan for your project
With the building loan offered by UBS, you have access to a building account where all costs related to your dream of home ownership can be managed.
How can I find a plot of land?
How can I find a plot of land?
You can find general information about the population, taxation levels and the development of land prices in your chosen municipality in the UBS Municipality Guide. Here are the main ways you can find a plot.
- Take a look at the advertisements in daily and weekly newspapers, both online and printed.
- You can search according to specific criteria or save a search request, for example, on real estate portals such as Homegate or ImmoScout24.
- Appoint an estate agent to search on your behalf.
- Foreclosures can also occasionally provide an opportunity to find building land. These are published in official registers, although these are not always easily searchable.
- Take a look at the zone plan in your chosen municipality and contact the municipal administration. Asking around in your local restaurant or among other well-informed sources in the area may also help find some land.
All the facts on your chosen municipality
All the facts on your chosen municipality
Do you already have an idea of where you’d like to search for land? The municipality guide gives you information on the development of real estate prices as well as the population of a municipality. You can also find out the classification of the location or the tax burden with the tool, which is easy to use and free of charge.
How much does building land in Switzerland cost?
How much does building land in Switzerland cost?
The price per square meter is between 200 and over 2,000 francs. The average is between 600 and 800 francs. Prices depend not only on the location but also on the Ausnutzungsziffer, i.e., the ratio between the plot size and the maximum area which can be built on, infrastructure provision at the site and the building regulations. Full utility connection including access, water and wastewater piping, electricity, telephone and fiber optic cabling can cost from 100 to 150 francs per square meter according to hausinfo.ch. If a site is not already connected to the utilities, this must be taken into account in the price comparison with other offers where they are included. Real estate portals such as Homegate allow you to search according to the price, or in a specific canton, for example.
What should I pay attention to when buying a plot of land, and which mistakes should I avoid?
What should I pay attention to when buying a plot of land, and which mistakes should I avoid?
- You should carefully study the municipality’s zone plan and building regulations: is it definitely building land? Which building regulations apply, for example, those relating to the roof pitch, height or soundproofing? What is the maximum percentage of the plot of land that can be developed?
- A look at the land registry will reveal whether there are rights of way (formal permission for neighbors allowing them to cross your property for access), which could restrict building on the land.
- If possible, obtain planning permission before purchasing the plot.
- If the site is not yet fully connected to utilities, establish the additional costs this will incur.
- Do not rely entirely on information provided by the seller; study all available documents including sales documentation.
- Consider not only the price of the land, but also the overall costs of the house, financing of the mortgage and its affordability. When buying land, land registration fees will apply and, depending on the canton, land transfer tax. Altogether this can total up to 5 percent of the purchase price.
How does financing a land purchase in Switzerland work?
How does financing a land purchase in Switzerland work?
If you cannot finance the purchase from your own funds, the building land will generally be financed together with the building project itself. Twenty percent of the total amount should be financed with your own equity.
Advice on buying land and financing real estate
Advice on buying land and financing real estate
Our advisory teams have extensive expertise and will be glad to support you, whether with assessing the quality of your chosen location or with financing your building project.
Ready to purchase your plot?
Ready to purchase your plot?
As you can see, there is enough available land in Switzerland for your building project – with just a few regional exceptions. With a moderate amount of effort it’s usually possible to find a plot, and the potential pitfalls are avoidable. With our tips and recommended tools you are in a good position to take the next step towards realizing your dream of owning your own home.
In summary, it can be said that purchasing construction land in Switzerland is a key factor when building a home. Financing building land also requires comprehensive planning. With careful preparation and professional advice, you can make the process a success and your construction projects a reality.
