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Would you like to sell your house? To find the best time, the following points can be taken into consideration. Also, the time is right when you are ready.
What is the best season to sell?
The best season to put your villa up for sale is during the summer time. The bright and sunny days allow for beautiful photos. Nature shows its most beautiful and colourful face and the flowers in the garden bloom. Potential buyers can visit the house after work in the daylight.
Tax on real estate profits
In the canton of Geneva and in most cantons, the tax rate is calculated according to the length of time the seller has owned the property. Currently, in autumn 2020, it goes from 50% for a period of ownership of less than 2 years to 0% for a period of ownership of 25 years or more. Sometimes, if you can, it is worth waiting a few months or days to sell your home to save tax.If you buy a new home to live in within 5 years, you can ask the tax authorities to defer the tax on the profit. Also read my article and watch my video: Taxes on profits and property gains in Geneva. I would like to draw your attention to the fact that discussions are currently underway to modify the law on taxes on real estate profits in Geneva to the detriment of the owner.
The fixed rate mortgage
If you have taken out a fixed-rate mortgage for a long period of time and you cannot transfer the mortgage to a new property you are buying and the buyer of your house does not want to take it over because he can get better financing, you will have to terminate the mortgage early and pay the bank a compensation which can be expensive. Contact your banker to clarify the situation and make the calculations.
The capital withdrawn early from the pension fund
If you sell the house that you have partly financed with early withdrawal capital from the pension fund, you will have to pay it back in full if you are not yet retired and if you are not using it to buy another main residence. If you are very close to retirement age, you may be able to wait until you sell the property so that you do not have to pay back the money.
Rented house
If you sell, the lease is transferred to the buyer. On the market there are hardly any requests from investors to buy rented villas. If you have terminated the lease, you will need to be sure that the tenant leaves the house on the agreed date, otherwise a buyer can claim damages. In Geneva, a buyer can terminate the lease with 3 months' notice by the end of a month if they claim an urgent need for themselves or their close relatives or allies and the tenant can claim damages from the seller. To avoid problems and if you are careful, you should obtain an undertaking from the buyer to take over the lease in full or wait for the tenant to leave before signing the deed of sale. For more details, read my article or watch my video: Selling a rented villa, is it possible?
Owners, heirs, spouses
Before you can sell your house, you must be registered as the owner in the land register and all co-owners must agree to a sale. If the house is used as a family home you will need the express consent of your spouse, even if he or she is not registered as the owner in the land register.Without the agreement of the other people involved, you will not be able to sell the house and they must first be convinced.
