Note that, if the entire house were just one unit, there would be no problem with financing it (we can cover 20% using Pensionskasse + Pillar 3 + cash).
What would you suggest I do?
Should I use a mortgage broker (any suggestions apart Moneypark) to find a more cooperative financing institute? We need a financing institute that considers this setup as "Family house with bonus income" and not as "Renditenliegenschaft".
Thank you :-)
Or buy it and convert it to a single family house.
Tom
P.S. I tried it, no way to get around the law.
Other option would be to buy as a single house and use the flat as airbnb type of holiday rental, could may be able to get away with that as I am not sure if you would need to declare it?
When you get caught with Tony's idea, and you certainly will do via somebody in the commune, the pension fund can demand repayment which if you can't do it will lead to foreclosure.
The law is VERY clear here what and what you cannot do and the penalties.
Ultimately it comes down to the risk one is willing to accept. Similar to the recent poster who asked the consequences for his mortgage if he/she were to lose their job. According to the terms of the contract they should have been in trouble, in reality, as long as the mortgage repayments arrive as normal then there will almost certainly be no consequences. Although I accept in this case, the chances of getting "caught" in a small community in Berner Oberland are higher than elsewhere in Switzerland.
EDIT I just read again and seen that the 3rd flat is already rented, I misunderstood the situation and thought it was 3 empty flats
Is the house a house or three apartments?
I.e. is it listed as a single house or a PPE (La propriété par étages est une copropriété où plusieurs personnes sont propriétaires d'une certaine partie d'une habitation.) So in the end, are you buying a house or three apartments?
Because if you are buying a house, then I don't see an issue why you cannot use your 2nd/3rd pillar, since you are going to use that as your primary residence. I had a similar discussion with Postfinance before, and they told me that as long as I live there, there is no problem.
Another friend of mine also bought a house with 2 apartments in 2021 (with UBS) with her 2nd pillar. Now she is living in one, renting the other.
However; if it is a PPE, then that means you are buying a building with three apartments, not a house. Then you have no way of using your 2nd pillar, because it is an investment property.
The risk that you are facing is not with the bank, it is with the pension. They are the ones who will pay the money to the notary and they are the ones you should discuss with, not the bank.
For the actual sale to pass at the notary, the house was on paper formally converted to a single family home. The renter agreed with us to move out at the time of us starting with the renovations. It was the notary and the bank (UBS Key 4) who organised all the paperwork, no hassle at all in the end.
I have to make this addition:
We purchased 20% of the property with our own cash. We are now using the 2nd pillar for the renovations instead, which includes the apartment. Afterwards, we will convert the apartment again to a rented property, this setup has the support of our notary.
Ignorance is no defence !
Some guy got hit in our area, lives in a quiet cul de sac, you have no idea how malicious and calculating some a**holes can be
The rule was put in place to stop people doing exactly this.
You can buy a PPE apartment with your pension fund, for you to live in.
The pension fund will also have to sign off on it and that means at some point you will sign off on false documents and that is technically fraud - obtaining monies by deception, even if you do regard it as your money. Who knows if it ever becomes a criminal matter, but the one thing for sure is that it will be out of your control.
If I remember correctly, 2nd pillar funds can be used to establish a business so perhaps you might explore the possibility to turning it into a business with benefits instead. But get proper legal advice because there will still be a lot of issues to navigate.
You really need GOOD professional advice if you want to proceed via a company purchase.
I now live on the ground floor apartment, and the other two are rented out. (one long term and one short term as I want it free in case family come and visit)
Get a professional's support. I use Fabrice at DL moneypark - they have my full recommendation. He sorted out all the paperwork for a "mehrfamilienwohnung"