Off-plan acquisition

News from DL MoneyPark and information on the financial market and Swiss romande real estate

Author : Kristen

Acquistion of a shared property

The acquisition of a shared property involves the construction of a new property by floor (PPE). The property (apartment and/or lot) to be acquired will represent a part of the total construction, usually expressed in thousanths of the base plot, meaning the whole property. 

In this situation, as soon as the purchase deed is signed at the notary's office, the buyer becomes the owner of their part expressed in thousandths of the land, which represtents their share in the property. Generally, this value is close to 20% of the total purchase price, but this is not a rule.

The purchase price balance of 80% is usally paid in advances following the commencement of construction.

From a financial point of view, this method is interesting for the buyer both in terms of purchase costs and loan interest to be paid.

In fact, in this form of purchase, the purchase costs (approx. 5%) are calculated on the basis of a share in the proprty and not on its final value, which represents a significant savings.

In the case of advance payments, it is necessary (with some exceptions) to resort to bank financing, meaning a construction loan.

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