Total Cost of Buying a CHF 2 Million Property in Montreux

The property

This example assumes the purchase of a CHF 2,000,000 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 1,600,000). The buyer contributes 20 percent equity (CHF 400,000) from their own funds.

Transaction costs

Transfer tax (2.2% of CHF 2,000,000): CHF 44,000. Notary fees (approximately 0.2%): CHF 4,000. Land register fees (approximately 0.1%): CHF 2,000. Mortgage registration fee: CHF 1,500. Bank arrangement fee (0.2% of CHF 1,600,000): CHF 3,200. Bank property valuation: CHF 2,500. Total transaction costs: approximately CHF 57,200.

Total cash required at completion

Equity contribution: CHF 400,000. Transaction costs: CHF 57,200. Total cash required: CHF 457,200 — approximately 22.9 percent of the purchase price.

The mortgage of CHF 1,600,000 covers the remaining CHF 1,600,000 of the purchase price. Transaction costs must be paid in cash.

Annual ownership costs

Annual mortgage interest (CHF 1,600,000 at 2%): CHF 32,000. Annual amortisation (second tranche, CHF 300,000 at 1%/year): CHF 3,000. PPE service charges (estimated): CHF 8,000. Property taxes (estimated): CHF 7,000. Maintenance reserve (0.5% of property value): CHF 10,000. Total estimated annual ownership costs: approximately CHF 60,000 per year, or approximately CHF 5,000 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 2,000,000
• Transaction costs: ~CHF 57,200 (2.86% of purchase price)
• Total cash required: ~CHF 457,200 (equity + transaction costs)
• Mortgage: CHF 1,600,000 at 80% LTV
• Annual ownership costs: ~CHF 60,000/year