It’s a flat in Schaffhausen. That’s why the price is reasonable.
The taxes there are higher than Zurich (where I am currently renting) but the prices are significantly lower in Schaffhausen.
There’s obviously some information available by googling but I highly value responses here as most of the time people here know by experiencing things..
You can also look just across the river at Feuerthalen or Flurlingen. I bought a place (and in fact selling a place) in Flurlingen where prices are similar to Schaffhausen, but taxes are lower.
Q1: What’s the reason for that? Is it because of the high taxes?
Because the banks have managed to convince everyone its a good idea to pay interests to them to lower your taxes and most people happily go along. So you never actually own, you just pay to the bank.
And let’s say in 10 years, the house value is 700000 CHF.
Q2: Will the %65 be recalculated again based on your house value?
Not sure but for sure when interest rate goes up banks will come knocking to ensure you can continue to pay.
Q3: Also is it easy to sell? If yes:
Depends on a million of factors. Where the place is etc. Ask how long its been on the market and it will give you an idea.
Q4: How much is your profit taxed?
Depends where you live and also whether you will immediately buy again, how long after you sell etc.
I have had a few fixed term mortgages with UBS (diffferent terms). We've been under the 65% mark for years - but only when we renewed two years ago and specifically asked for the amortisation to be removed did we stop making any repayments.
For your second question, when we shifted our mortgage from the cantonal bank to UBS, UBS revalued our house - and that's what put us under the 65% mark.
The longer you own the house, the lower the capital gains tax on sale. Additionally if we had sold within the first five years, we'd have had to pay Cantonal stamp duty. As we didn't it has been waived. Further in some Cantons if you sell, you're not taxed if you buy a more expensive house. It's only when you realise profits that you get taxed.
Debt interest is tax deductible, capital gains on securities are tax free. The dividends on stocks, while taxable and thus canceling its tax advantage, may be high enough to finance the debt interest.
So it roughly amounts to free (or very cheap) credit, the gains on which are tax free. On top of that you get the gains on the property, and comparatively low running costs aka "rent".