House or Apartment: How to Choose Your Future Home?
Are you hesitating between the comfort of a private villa and the practicality of a condominium apartment (PPE)? Everything depends on your lifestyle, your budget, but also your future plans.
Between a house or an apartment, how can you make the right choice? In truth, everything depends on your long term life project :
- Full ownership allows complete enjoyment of both the land and the building without having to answer to anyone, whereas condominium ownership (PPE) requires compliance with co ownership regulations and majority decisions.
- A house owner alone assumes 100% of renovation and insurance costs, while in an apartment, expenses are shared through a mandatory renovation fund and monthly condominium charges.
- The calculation of imputed rental value and the possibilities for tax deductions vary depending on the scale of maintenance work, often heavier for a house, directly influencing annual taxable income.
Buying a house or an apartment : which option is the most profitable in Switzerland ?
The profitability of a real estate purchase is not measured solely by the purchase price, but by the total cost of ownership over ten or twenty years.
What impact does the imputed rental value have on your annual budget ?
First of all, you should know that the imputed rental value is a fictitious income added to your tax return, corresponding to the rent you could receive if you rented out your property.
For a villa, this value is often higher than for an apartment, increasing your tax burden. However, mortgage interest and maintenance costs are deductible, which helps balance the equation, especially for houses requiring regular energy renovations.
How do notary fees vary between cantons ?
Acquisition costs (notary fees, registration duties, land register fees) represent a significant part of the personal contribution :
- Geneva and Vaud : they are among the highest, ranging around 4% to 5% of the sale price.
- Fribourg and Valais : rates are generally more attractive, ranging between 2.5% and 3.5%.
Good to know : for a new apartment purchased off plan, notary fees may sometimes be calculated only on the share of the land, which reduces the initial bill compared to an already built house.
House or PPE : what maintenance costs should be included in the budget ?
For a house, it is recommended to set aside approximately 1% of the building’s value per year for maintenance.
In an apartment (PPE), costs are shared : you pay monthly charges including administration, heating of common areas and contributions to the renovation fund.
Even if an apartment appears less expensive on a daily basis, a villa offers complete control over the schedule and cost of renovations.
Detached house or apartment in PPE : our comparison
The choice between a villa and co ownership is based on a major legal distinction : full ownership versus ownership share. This choice affects not only your daily autonomy, but also the structure of your fixed costs.
| Criterion | House (Full ownership) | Apartment (Condominium / PPE) |
|---|---|---|
| Legal status | Sole owner of the land and the building. | Co owner of a share of the building (thousandths). |
| Decision making | Full and immediate control over all works. | Subject to the vote of the co owners’ assembly. |
| Technical management | Self managed by the owner. | Delegated to a property manager. |
| Renovation fund | Optional personal savings. | Mandatory annual contribution. |
| Fixed costs | Maintenance costs vary depending on the condition of the building. | Smoothed monthly charges (caretaking, common areas). |
| Outdoor spaces | Private garden and full landscaping freedom. | Balcony or garden with restricted use according to regulations. |
Which criteria should you choose for a sustainable real estate investment in French speaking Switzerland ?
The final choice must include the notion of resale value, because your home is also your main financial asset.
House or apartment : which type of property sells the fastest ?
The liquidity of a property varies depending on the price segment and local demographics :
- The apartment (3.5 to 4.5 rooms) : it benefits from the fastest turnover. Its more accessible overall price attracts a broad base of buyers : young couples, single parent families or retirees looking to leave their villa.
- The detached house : although demand remains structurally strong, the sales cycle is often longer. The amount of mortgage financing required mechanically limits the number of potential buyers.
The importance of proximity to public transport (SBB/TPG)
In Switzerland, connectivity is the main driver of real estate appreciation. A property is considered strategic if it meets the following conditions :
- Access to the rail network : less than a 15 minute walk from an SBB station or a regional express stop (Léman Express).
- Transport frequency : regular service (every 15 minutes during peak hours) by urban transport networks such as the TPG in Geneva or the tl in Lausanne.
- Soft mobility : the presence of secure cycling paths connecting the property to economic activity centres.
Can you use your second pillar pension fund (LPP) in the same way for a house or an apartment ?
The Home Ownership Promotion scheme (EPL) applies regardless of the type of property, but imposes strict rules regarding the use of pension assets :
- Exclusive use : withdrawal or pledging is only authorised for the owner occupied primary residence (secondary residences are excluded).
- Resale restriction : in the event of a sale of the property, the amount withdrawn from the second pillar must be repaid to the pension fund, unless the funds are reinvested in a new primary residence within two years.
- Equity requirement : of the required 20% equity contribution, at least 10% must come from cash savings (excluding LPP), regardless of the type of construction.
FAQ
Is the calculation of imputed rental value different for a house ?
The principle is identical : it is a fictitious income based on the local rental market. However, since a house generally has a larger living area than an apartment, its imputed rental value will be higher, thereby increasing your taxable income.
Are notary fees higher for a villa ?
Tax rates (registration duties) are the same. However, since the sale price of a house is often higher than that of an apartment, the final amount of acquisition costs will mechanically be higher.
What happens if the renovation fund of a PPE is insufficient ?
If urgent work is approved and the fund is insufficient, co owners must make an extraordinary contribution. This financial risk does not exist for a house, where you decide on the timing of the work according to your own financial resources.
Is it possible to convert a house into PPE ?
Yes, it is possible to create floor units in an existing villa (for example to create two apartments). This requires a notarised deed and the registration of new entries in the Land Register.
Does property tax vary according to the type of property ?
No, property tax (when it exists, such as in the cantons of Vaud or Valais) is calculated based on the taxable value of the property, without distinction between individual or collective housing.