Total Cost of Buying a CHF 1 Million Property in Montreux

The property

This example assumes the purchase of a CHF 1,000,000 apartment in Montreux by a Swiss resident (C permit holder) for use as a primary residence, financed with a mortgage of 80 percent of the purchase price (CHF 800,000). The buyer contributes 20 percent equity (CHF 200,000) from their own funds.

Transaction costs

Transfer tax (2.2% of CHF 1,000,000): CHF 22,000. Notary fees (approximately 0.2%): CHF 2,000. Land register fees (approximately 0.1%): CHF 1,000. Mortgage registration fee: CHF 1,000. Bank arrangement fee (0.2% of CHF 800,000): CHF 1,600. Bank property valuation: CHF 2,000. Total transaction costs: approximately CHF 29,600.

Total cash required at completion

Equity contribution: CHF 200,000. Transaction costs: CHF 29,600. Total cash required: CHF 229,600 — approximately 23 percent of the purchase price.

The mortgage of CHF 800,000 covers the remaining CHF 800,000 of the purchase price. The transaction costs must be paid in cash — they cannot be financed with the mortgage.

Annual ownership costs

Annual mortgage interest (CHF 800,000 at 2%): CHF 16,000. Annual amortisation (second tranche, CHF 150,000 at 1%/year): CHF 1,500. PPE service charges (estimated): CHF 5,000. Property taxes (estimated): CHF 3,000. Maintenance reserve (0.5% of property value): CHF 5,000. Total estimated annual ownership costs: approximately CHF 30,500 per year, or approximately CHF 2,540 per month.

These figures are indicative. Actual costs depend on the specific property, the mortgage rate negotiated and the owner's tax situation.

Key points

• Purchase price: CHF 1,000,000
• Transaction costs: ~CHF 29,600 (2.96% of purchase price)
• Total cash required: ~CHF 229,600 (equity + transaction costs)
• Mortgage: CHF 800,000 at 80% LTV
• Annual ownership costs: ~CHF 30,500/year (mortgage interest, amortisation, charges, taxes, maintenance)