Glossary

This absolute land value is a value for developed building land in the same or similar locations. It is therefore a comparative value and differs from the relative land value, which expresses the land value in terms of development opportunities.

Calculates the amount required for the new acquisition or replacement cost of an item less the depreciation amount for any reduction in the item’s value attributable to wear and tear or age.

Ratio between the purchaser’s gross wage and the cost of owning the property. In order for a mortgage to be paid for, the affordability calculation, expressed as a percentage, should be as low as possible.

Technical as well as economic depreciation will reduce the value of a property. The term age-related depreciation relates to physical ageing, dilapidation, damage, decline in contemporary appeal, and advancing developments in building technology and materials.

Agglomeration refers to the collection of private residential properties, commercial and industrial areas in a specific area.

An agglomeration is a spatial cluster in which people, companies, transportation and other functions operate together. Agglomerations are often advantageous because of the proximity and synergy effects they offer. Agglomerations can be defined as small, medium or large areas, depending on their size and the characteristics they exhibit.

In general, agglomerations are centers of economic activity and there is a variety of businesses and services in these areas. In addition, an agglomeration may include a mix of housing, stores, schools and medical facilities.

The task of spatial planning is to distinguish agriculturally used areas according to the different types of use and to allocate them to the corresponding types of agricultural zones. These are:

Agricultural zone I:   
Areas that are absolutely worth preserving and are suitable for agricultural use such as crop rotation areas, vineyards and mechanical cultivation.

Agricultural zone II:     
Areas that are to be used for agricultural purposes in the overall interest and are difficult to cultivate, e.g. due to steeper slopes, shallow soil depth, difficult climatic conditions or naturally limited fertility and productivity.

Protected agricultural zones:     
Areas that are to be used for agricultural purposes, but are worthy of protection due to their unique character or special beauty. These include in particular important traditional cultural landscapes such as terraced or saffron crops and hedgerow landscapes.

Special agricultural zones:     
Areas used for soil-independent agricultural activities such as hors-sol crops or greenhouses.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones; for example, there are five types of zones in the Canton of Zurich. In addition to agricultural zones, building zones, clearance zones, recreation zones and reserve zones are also defined and regulated as such.

Ancillary costs are supplementary charges levied for services provided by the landlord or a third party in connection with the use of the property (Art. 257a OR of the Swiss Federal Code of Obligations and Art. 4 VMWG of the ordinance governing lettings and leasing of residential and commercial space).

Ancillary or secondary use space (Nebennutzfläche – "NNF") is, under the terms of the SIA ordinance 416, the part of the usable space (Nutzfläche – "NF") that is supplementary to the main usable space (Hauptnutzfläche – "HNF").

In residential buildings, ancillary space includes areas such as utility rooms, attic and cellar space, store rooms, bunkers, and waste disposal amenities.

Made up of representatives of landlords and tenants on a non-hierarchical basis, this is a council that seeks to arrive at an agreement between parties in the event of tenancy disputes.

Slightly curved, it lies as a unit on the building and, due to its special shape, it is usually made of cambered, bent sheet metal and it is used mainly in industrial and commercial properties.

It is significantly less curved than a barrel roof.

The municipality of Arosa is a holiday and recreational resort in the region of Plessur in the Canton of the Grisons in Switzerland. In earlier times, it was the highest altitude settlement in the valley of Schanfigg and a well-known health resort. In the meantime, Arosa has been part of the Arosa-Lenzerheide linked ski region since 2014, making it an attractive destination with 225 kilometers of pistes.

Further information

Back-testing is a method of calculation that shows how much a purchaser's outlay for a land parcel must be in order to generate a return on investment (ROI).

The accepted practice is to set off any potential profits from a sale against the investment costs.

The resulting (relative) land value represents the purchase price as well as any incremental provisions for potential risks and gains in order for a project to be realised.

Definition: A liability payment is a payment made by the debtor at the time of conclusion of the contract which the creditor should be allowed to retain in the event of non-performance. The detention money strengthens the contractual bond. Legal presumption: Liability money (and not a penalty fee) according to Art.158 para. 1 OR.

Adhesion money can be agreed in the form of a deposit or a bonus

Money on top: Money which is a grant in addition to the contractual performance of the donor. If the contract is duly fulfilled, the creditor thus retains the top-up money in addition to his contractual claim. Moreover, in the event of a default, the creditor is entitled to full compensation, irrespective of the top-up money already paid.

Deposit: Money which, in economic terms, is merely an advance on the contractual performance of the donor and must be credited accordingly. Accordingly, in the event of a possible default, the amount of damages owed is reduced by the value of the fishing rod already paid.

Legal presumption: bonus in accordance with Art. 158 para. 2 OR. The penalty payment cannot be claimed by way of legal action, as it must be paid on conclusion of the contract.

Shape: In principle, there are no special formal requirements for the justification of a prison sentence. However, if legal formal requirements are applicable to the main transaction (e.g. real estate purchase contracts require public notarisation in accordance with Art. 216 para. 1 OR to be valid), these also apply to the agreement of a liability money.

Distinction from the contractual penalty: Both prison money and the contractual penalty are instruments that ensure the provision of services. In contrast to the contractual penalty, however, the prison fee is not paid when the performance is disrupted, but already when the contract is concluded.

Curved like a half lying barrel, this roof covered with clay tiles forms the part of a circle in cross section. The roof surface has an inclination of 7 to 8 degrees at the apex and up to a maximum of 90 degrees at the eaves.

It is thus more curved than the much flatter arched roof.

A closed part of the building is generally referred to as a basement, which is completely or mainly below the earth's surface.

Since the use of cellars has evolved massively over time from being a buffer zone between the ground and the building, later as a store for vegetables and fruit, and today to being converted into a hobby room or guest room, the variety of cellars found today is almost inexhaustible.

Anyone who would like to find out more about special forms such as the high, low, crawl or earth cellar is recommended to read the corresponding article on Wikipedia.

If a property is sold in a bidding process, the highest bidder usually wins the bid. Such a procedure usually starts with non-binding bids from various interested parties and usually continues with at least one further round of binding offers until the bidder with the highest bid is finally awarded the contract.

The balance sheet value or book value of a property is calculated from the acquisition value less all depreciation.

Mortgages and other loans that an owner owes to banks and other creditors.

The line setbacks determine the respective distances that a new construction must retain between the building vis-à-vis public roads and municipal amenities.

With regard to new builds, it is often the case that planning permission is granted for construction within the lot line setbacks. Following completion, however, an official notice is issued requiring the removal of all parts of the building that exceed the defined setbacks without recourse to compensation. Furthermore, any increase in value is ruled out – in other words, the developer's rights to compensation are waivered. Notices of this kind can often be found in Land Registry documents. 

Further information

Every municipality has the right to determine its own building and zoning ordinance.

In conjunction with the local zoning plan, the building and zoning ordinance is the basis upon which the development and utilisation capacity of a plot is determined.

Façade and roof without balconies, roof superstructures or other protruding elements.

The existing substance of a building from the basement to the roof, in particular the most important components such as the foundation, the walls, the ceilings and the roof. For an assessment one considers the condition, the age and the state of preservation. The better the building fabric, the more valuable the property.

It is crucial for the valuation of a property. Just like the interior design, the micro-location and macro-location.

The property is a spatially delimited part of the earth’s surface that is recorded in the land register in Switzerland on a separate land register sheet.

Building land is generally understood to mean the possibility of using this plot/property. In other words, not every property or plot of land is building land. The possible uses can be found in the building and zoning regulations (BZO) or in the zoning plan of a municipality.  

Further information

This is calculated from the actual horizontal and vertical dimensions (real volume). Special foundations such as piles, boxes, etc. are not included. For ancillary structures such as garages, carports, covered seating areas, pots, shelters, etc., the real volume must also be determined if they are closed on more than two sides.

The task of spatial planning is to allocate land that is largely built over or suitable for development and is likely to be needed and developed within the next 15 years to the appropriate building zone.

The canton of Zurich, for example, has the following six building zones:

Residential zones: Area for residential use
Core zones: For places and buildings worthy of protection
Neighbourhood preservation zones: closed districts that are to be preserved as a minimum.
Centre zones: densely built-up areas with residential space and administrative, commercial and service enterprises
Industrial and commercial zones: for industrial and commercial enterprises
Public buildings: Zones for the fulfilment of public tasks such as schools, hospitals, administrative buildings or swimming pools.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones, for example in the Canton of Zurich there are five types of zones. In addition to building zones, agricultural zones, clearance zones, recreation zones and reserve zones are also defined and regulated as such.

Computer Aided Design. Drawing tool with which two or three-dimensional drawings can be created on the computer.

The Swiss Cantons levy a tax on gains arising from the sale of land and property. This is effectively a separate tax on income calculated at a specific rate. Gains amounting to less than CHF 5,200 are tax free, as are gains arising from the disposal of movable assets (e.g. vehicles). The legislative basis on which capital gains on land and property are taxed in Canton Bern can be found on the following link:
Steuergesetz (Art. 126 ff. StG).

This is the (classic) method of valuation for investment properties and is used to determine ongoing returns from a property, capitalising these as perpetual income. It is less accurate than the DCF method and should only be applied in situations where there are stable income and cost ratios. 

Unlike a closed garage, a carport is open on one, two, three or all sides. This covered parking space for cars can be attached to a residential building, integrated into it or freestanding. Incidentally, the term was coined in the 1930s by the famous American architect Frank Lloyd Weber.

That part of the construction industry dealing with underground structures not intended to house humans or animals.

Clean technologies. The term refers to products and services that increase productivity or efficiency with a simultaneous reduction in resource consumption or emissions.

These serve to keep the banks of streams, rivers and lakes, forest edges, vantage points, the terrain for practising winter sports and the protection of groundwater and spring water protection zones outside the settlement area free of obstructions.

The construction of buildings and installations that correspond to this zoning purpose is permitted here.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones; for example, there are five types of zones in the Canton of Zurich. In addition to the free zones, building zones, agricultural zones, recreation zones and reserve zones are also defined and regulated as such.

Owner refers to the person, group or organization responsible for a construction project. This can be a private individual, a government, a company or a non-profit organization.

The client is usually responsible for financing the project and receives the finished result. It may also be responsible for planning, design and control tasks.

The client’s tasks often also include selecting the construction company, managing the budget and working with the civil engineer.

The client is usually the one who has the final say on the project.

As CO2-neutral primarily the following heat generators are considered: District heating, heat pumps, Solarthermie and wood.

Collateral value is a technical term used by the banking sector. Banks are no longer permitted to lend amounts equivalent to the sales price but, with effect from 2013, must assess the value of a property based on lowest price methodology and underwrite any financing on the basis of the bank's appraisal. Subject to type of property, price and creditworthiness of the buyer, banks may offer mortgages of between 50-80% of the collateral value. In the event that the purchase price is higher than the collateral value, the buyer is obliged to settle the difference with his own means.

Further information:

Under the terms of Article 416 of the regulations of the Swiss Institute of Engineers and Architects (SIA 416), the common access or circulatory area (Verkehrsfläche – "VF") is effectively that part of the net floor space (Nettogeschossfläche – "NGF") that is used solely for the purposes of access.

In residential buildings this would include, for example, corridors, entrance halls, stairways, ramps, and lift shafts.

Depending on the local planning laws and regulations, common access or circulatory areas need to be taken into account when calculating possible utilisation ratios.

Densification refers to the creation of living space by eliminating open spaces, using taller buildings, using different construction methods and increasing the utilization rate. 

Through densification, local planning authorities can create more housing in a smaller area, which can attract more people to the area and support the local economy. Densification can also help improve public transportation, the shopping experience and the overall urban experience.  

However, densification can also lead to traffic congestion, noise and a deterioration in environmental quality if the infrastructure is not adapted to the increased demand.

This valuation method compares prices on the basis of the available transaction data and is derived from the principle that a regression analysis of past prices paid can be indicative of current transaction value provided that sufficient data are to hand. This method is most often applied in relation to the valuation of properties held in joint freehold (apartments) or to development land.

Financial compensation for damages suffered. Compensation is calculated according to the occurrence of damage.

The name says it all, and the circular roof rises proudly into the air as a cone with a more or less acute angle.

Conversion of a building loan into a mortgage after construction is completed.

According to SIA ordinance 416, the construction area (Konstruktionsfläche or KF) is the internal expanse of the floor area (Geschossfläche or GF) that is encompassed by the exterior perimeter walls and interior supporting walls together with any pillars, arches or buttresses.
 

Building elements such as moveable partition walls and built-in cupboards do not count as perimeter walls or internal supports in the context of this norm.
 

There is still a distinction made between load-bearing and non-load bearing construction elements.

The agreement of a so-called convertible penalty has the content that the debtor can choose to withdraw from the contract against payment of the contractual penalty (= convertible penalty). The convertible penalty is only owed if the debtor withdraws from the contract. A claim for damages by the creditor is presumably excluded (the same as for the penalty). In other words, the conversion penalty enables the debtor to be unilaterally and arbitrarily released from the main obligation and thus has exactly the opposite purpose to the strengthening of the binding effect intended by the contractual penalty. In functional terms, the convertible penalty is equivalent to a fine: Both instruments facilitate the debtor's unilateral release from the main obligation.

Example of a contract penalty application case: In the case of mortgage loans with a fixed term, where by contract or on the basis of established banking practice there is the possibility for the mortgage debtor to terminate the loan prematurely against payment of an early repayment penalty.

Civil regulatory principle whereby rents may not exceed the total gross income required to cover costs, and any increase in rent must be justified by a corresponding increase in running costs.

Mortgage and loan interest on the debt capital invested in a property and imputed interest on the equity capital contributed by the owner.

Quotient of overall building volume above planted terrain divided by the total developable land area. Cubic index ratio is a term used in building law.

Building volume in cubic meters.

The discounted cash flow (DCF) method is a dynamic calculation method modelling the income stream of a property over a period of (usually) 5-10 years offset against any costs. Earnings are discounted to a present value.

This method is particularly effective in illustrating changes in rents, for example on initial letting or following a major renovation. In such instances the direct capitalization method is less appropriate, because it assumes stable income streams and cost parameters. 

The method is interesting, especially when calculating returns (IRR – Internal Rate of Return) on investments with periodic negative earnings phases (e.g. as a result of building work and vacant periods). 

The appointed delegate serves as liaison between the owner and the managing agents but has no authority to issue directives. They advise the managing agents and support them in carrying out property inspections and in rectifying deficiencies or faults.

These include clearing and grubbing, demolition of the building, securing of existing facilities, dismantling, transportation costs, and landfill and disposal costs.

Security guarantee (deposit) on the part of the tenant to the landlord. Usually effected by means of a cash payment transferred to an escrow or holding account (tenant's security deposit account). In the case of commercial lettings, a bank guarantee for the requisite amount is often also required.

An amount lodged by the tenant that serves as security for the landlord. In the case of rental apartments, such deposits may not exceed three months' rent and must bear interest at the normal rate for savings accounts (Art. 257e OR [Obligationenrecht: legislation pertaining to obligations]).

Is the conceptual planning phase in terms of land use. It goes beyond the zoning designation with specifications on use, utility lines, type of construction and finishing. Design plans are issued by the municipal council, approved by the relevant governmental body and are binding for the owner.

Nearly ever vendor considers his property to have unique appeal or the "X" factor – a sentimental value that cannot be expressed in concrete terms by an appraiser. Only the market can determine what this value might be. The "X" factor can sometimes also have a negative effect where a property is in an affordable location, but disproportionately large and too expensively built.

The development proposal is synonymous with the feasibility study.

The development proposal or feasibility study is a an overall conceptual design for a building plot. It is undertaken by an architect, who carries out the preliminary investigations with regard to public ordinances (planning and development regulations), private ownership legalities (Land Registry records, easements and covenants), and any geographic/topographical considerations of relevance in order to weigh up all the development options for a given property.

Following this, all the construction options are set out – for example, the number of apartments / houses that can be built on a plot. Normally, ancillary spaces (e.g. cellars and garages) are included in the planning process. The development proposal does not usually set out detailed floor layouts at this stage. Following the development proposal, it is possible to estimate construction costs. The broker is then in a position to publicise the sales prices of the projected properties as proposed in the development concept. It is on this basis that the classic back-tested method of calculation is applied; in other words, it is possible to arrive at the relative land value.

With direct amortization, the borrower reduces his mortgage debt and thus his interest burden with each repayment.

Various renewable heat or waste heat sources can be used for district heating. These include, for example: waste water, seawater or groundwater, geothermal or solar energy, as well as waste heat from waste incineration plants or from industry.

This is a term used to describe all the separate inquiries and investigations a prospective purchaser is recommended to undertake before acquisition of a property. Due diligence is not restricted to the legal aspects of a purchase (e.g. planning and development laws, zoning regulations, landlord and tenant legislation). Nowadays, it is increasingly important to consider the implications of any potential site contamination (pollution).

Von Bund, Kantonen und Gemeinden werden Steuern auf Einnahmen von Liegenschaften im Privatbesitz erhoben. Als Einnahmen gelten Mieterträge und bei selbstbewohnten Liegenschaften der Eigenmietwert als fiktive Einnahme, da der Eigentümer im Gegensatz zu einer Vermietung kein besteuerbares Einkommen erzielt. Im Gegenzug können Unterhalts- und Finanzierungskosten in Abzug gebracht werden, nicht aber wertvermehrende Aufwendungen.

All floors of a house that need to be heated or air-conditioned for use.

The Engadine is a high-lying valley in the Canton of the Grisons (Kanton Graubünden) in Switzerland. Its Rhaeto-Romanic (rätoromanisch) names are Engiadina, Nagiadegna and Gidegna – Engadina in Italian – and are variations of the Rhaeto-Romanic for the river Inn (En). It is more than 80km in length and one of the highest inhabited valleys in Europe. The valley is at the uppermost part of the river Inn's rise and is divided into two distinct territories: the Upper Engadine and the Lower Engadine. The boundary between these two areas lies between Cinuous-chel, a sub-district of the municipality of S-chanf, and Brail, a sub-district of the community of Zernez. It's defining landmark is the Punt Ota bridge spanning the mouth of the river Ova da Punt Ota.

The difference between the value of a property (market or investment value) and the amount of borrowed capital invested.

The result of the real estate appraisal is the market value, which is particularly important when buying or selling and forms the basis for the long-term financing of a property and is decisive when taking out a mortgage.

This market value corresponds to the price that can probably be achieved within one year under normal market conditions and is made up of the substantial values of the land and building. The most important factors influencing the determination of the market value are location and site, type and development, land and rooms, community and surroundings, age and condition, and energy.

Ginesta offers a free online appraisal and also detailed appraisals on real value, income value or DCF methods (discount cash flow) by our federally certified real estate appraisers. 

Learn more here. 

The external floor area is the overall usable space which is not enclosed or covered on all sides. This includes, for example, balconies, terraces, outdoor staircases and open parking spaces or carports.

The municipality of Falera – officially known as Fellers until 1969 – is in the Surselva region of the Swiss Canton of the Grison (Graubünden). The origin of the name is unknown. The assumption is that this dates back to a pre-Roman tribe that later added the Latin suffix –aria, eventually giving rising to the Surselvan –era. The 15th Century church of St. Remigius is the iconic landmark of this idyllic village.

The feasibility study or development proposal is an overall conceptual design for a building plot. It is undertaken by an architect, who carries out the preliminary investigations with regard to public ordinances (planning and development regulations), private ownership legalities (Land Registry records, easements and covenants), and any geographic/topographical considerations of relevance in order to weigh up all the development options for a given property.

The feasibility study sets out all the construction options, such as the number of apartments / houses that can be built on the plot.

Under normal circumstances, ancillary spaces (e.g. cellars and garages) are included in the planning process. The feasibility study does not usually set out detailed floor layouts at this stage. Following the feasibility study, it is possible to estimate construction costs. The broker is then in a position to publicise the sales prices of the projected properties as proposed in the concept. It is on this basis that the classic back-tested method of calculation is applied, in other words, it is possible to arrive at the relative land value.

A feasibility study is an important part of real estate project development.

It assesses the technical, economic and legal feasibility of a proposed project. This study forms the basis for every real estate development project to check whether it is sustainable.

The feasibility study is based on five pillars: location analysis, market analysis, competition analysis, needs analysis of users and investors and economic analysis. Only when the proposed project has successfully completed all phases can the actual start be considered.

The BGBB is a national statute regulating the use, acquisition or transfer of rights to agricultural land. Click on link for further information: https://www.admin.ch/opc/de/classified-compilation/19910253/201401010000/211.412.11.pdf

To finance home ownership, most buyers use a mortgage loan from banks. The equity portion must be at least 20 percent of the purchase price.

Kosten, die durch die Finanzierung einer Investition entstehen. Sie umfassen einmalige Kosten (z.B. Geldbeschaffungskosten), permanente Kosten (z.B. Zinszahlungen) und weitere Kosten (z.B. Opportunitätskosten).

Mortgage loan with a fixed interest rate and a fixed term of usually two or more years.

A flat roof surface with a slight incline of no more than 10 degrees.

If the slope is greater, one speaks of a shed roof.

Flims – Flem in Rhaeto-Romanic – is a municipality in the Imboden region of the Canton of the Grisons (Graubünden) in Switzerland. The community consists of two distinct parts: Flims-Dorf and Flims-Waldhaus. Additional hamlets such as Fidaz and Scheia also fall under the same district council. Flims effectively constitutes the pinnacle of the pass at the top of the Oberalpstrasse (main route No. 19) leading from Reichenau to Flims up an incline of 500 meters, winding down another 400 meters on its descent towards Ilanz.

Under the terms of of the Swiss Association of Engineers and Architects (Schweizerischer Ingenieur- und Architektenverein or SIA) ordinance SIA 416, floor space (Geschossfläche or GF) is the internal, enclosed and covered floor area of accessible floors including structural surfaces such internal walls, pillars and partitions.

Attic floors with restricted heights (headroom) are not included..

The number of occupant changes in an apartment within a given time frame.

Fossil heat generators are fuels that have been produced from biomass over time. These include coal, oil and gas. CO2 is bound in this biomass, which is released again during combustion.

Negotiated between landlord and tenant associations and declared generally binding by the Federal Government.

The functional floor space (Funktionsfläche or FF) is determined by the Swiss Institute of Architects (SIA 416) as being the part of the net floor space (Nettogeschossfläche or NGF) that is set aside for technical maintenance and building infrastructure.

Functional floor space includes rooms designated for technical installations, engine rooms for elevator shafts, service and waste ducts, boiler and tank rooms, etc.

Probably the most common roof shape in detached and semi-detached houses, in which two oppositely inclined roof surfaces meet at the highest point on a horizontal edge.

Probably the most common roof shape in detached and semi-detached houses, in which two oppositely inclined roof surfaces meet at the highest point on a horizontal edge.

Derived from the gabled roof, the roof surfaces at the sides of the gable are divided into two slopes for better utilization of the area below, the mansards: The lower roof surface is thereby arranged significantly steeper than the upper.

A contractor who, as the sole contractual partner of the client, assumes project management responsibility for the entire construction work and ensures that quality standards, deadlines and prices are met.

Maintaining and preserving special values have been the basis of our business activities since 1944. We work professionally and are committed to the concerns and success of our clients. Ginesta Immobilien as one of the most traditional houses in the Zurich region vouches for a personal and individual kind of service.

With comprehensive real estate services and more than 40 employees at five locations, we are happy to provide you with our in-depth know-how in the valuation, sale, rental and management of real estate throughout Switzerland.

Mortgage type in which the interest payments are spread over the fixed term in accordance with a pre-determined schedule.

The overall floor area, both above and below ground. All walls and wall cross-sections are also counted. Areas that cannot be used for residential or commercial purposes are not included. 

All areas within an apartment excluding the outer walls. Areas outside the apartment, such as balconies, stairwells or cellars, are not included. The gross living area is not meaningful for prospective tenants.

Rent including heating and ancillary costs.

Gross yield does not constitute an infringement of the law under Art. 269a lit. c OR as long as it does not exceed more than 2% of the designated base rate (BGE 118 II 124 E. 5). Gross yield is only relevant in terms of earnings performance for new-build properties. This criterion can therefore only be applied to newer buildings (10 years old maximum).

Gross yield is calculated on the basis of the following formula:

Gross yield = gross rental income x 100 : market value

Whereby: gross rent = rental income excluding ancillary costs

Remarks on gross yield: gross yield is simple enough to calculate, but nevertheless hard to interpret. Furthermore, its relevance compared with net yield and return on equity is negligible.

Symbolic sod-turning ritual using a spade in a ceremony to mark the beginning of construction work on a project.

It combines the characteristics of the gabled roof with those of the hip roof, in which the roof surfaces on the gable side are significantly shorter than those on the (longer) eaves side and serve only as protection from wind and rain.

Wechselt eine Liegenschaft den Besitzer, kann diese transaktionsorientierte Steuer anfallen. Diese variiert manchmal stark zwischen den einzelnen Kantonen. Die höchsten bekannten Handänderungssteuern werden in Basel-Stadt, Genf oder im Kanton Neuenburg mit drei Prozent erhoben. Zürich, Uri, Zug, Glarus, Schaffhausen oder Schwyz erheben diese Steuer nicht. Jeder erhebende Kanton kennt steuerbefreite oder -privilegierte Handänderungen wie die Ersatzbeschaffung, ein Erbgang oder eine güterrechtliche Auseinandersetzung. Die Handhabung dieser Ausnahmebestimmungen ist ebenfalls teilweise sehr unterschiedlich.

Access roads and streets, including forecourts.

Heat generators provide heating and hot water in buildings. They can be divided into fossil heat generators that release CO2 and CO2-neutral or renewable heat generators.

The energy for heat pumps comes from the soil, groundwater or air. Depending on the heat source, the same system can also be used for cooling (especially with geothermal probes). Although the construction of heat pumps is relatively expensive in many cases, they are rather cheap to operate. Since they depend on electricity for operation, we often use them in combination with photovoltaic systems.

Costs for heating, electricity, water, maintenance etc. that can be charged to the tenant, provided this has been agreed in advance.

Heating with wood is CO2-neutral. The combustion of wood releases as much CO2 as the trees extract from the atmosphere during their growth. Wood grows again and is thus a renewable energy source. There are wood heaters of most diverse kind. For example, piece wood, wood chips or pellets are used as fuel.

Abbreviation for Swiss Homeowners Association (Hauseigentümerverband), an organization that protects the interests of homeowners.

A multi-story and vertically oriented building, usually used as a residential, office and commercial property. The Swiss definition of this globally very elastic term is provided by the Association of Cantonal Building Insurers, which uses the term "high-rise" only for buildings with a total height of at least 30 meters. 

With a height of 205 meters, Switzerland's tallest building, Roche Tower 2, is well above this and, together with Roche Tower 1, is the only two buildings in Switzerland to meet the internationally accepted standard for "skyscrapers". This is how buildings with a height of 150 meters or more are usually referred to.

In contrast to the gabled roof, the roof sides here are sloped on all four sides and the shorter sides are usually symmetrical.

Measures enshrined in the Federal Constitution to promote the acquisition of owner-occupied houses, apartments and land.

So that a property can achieve a better sale, rooms are temporarily furnished by so-called home stagers for photo shoots and visits. 

Homeday ist ein Lead-Generation Anbieter. Die Website verwickelt potentielle Immobilienverkäufer mit diversen Fragen zum Verkaufsobjekt in einen Prozess, in dem der Eigentümer einer Liegenschaft alle Objektangaben eingibt.

Anschliessend versucht das Unternehmen einen Makler zu finden, welcher die Liegenschaft veräussern kann. Es werden dann 3 Vorschläge von Maklern gemacht. Dabei werden nur Makler vorgeschlagen, welche mind. 30% der Maklerprovision an Homeday abgeben.

Das Unternehmen ist in Deutschland aktiv und hat im August 2017 Aktivitäten in der Schweiz aufgenommen, u.a. mit einer Kooperation von Homegate. Die Schweizerische Maklerkammer hat daraufhin sich von Homegate distanziert und seine Mitglieder vor einer Zusammenarbeit mit Homeday gewarnt.  

Weitere Informationen / Pressemitteilung der Schweizerischen Maklerkammer

Indicates the total number of relocations to a specific area within a given timeframe.

Value-enhancing investments are: 
– New components that were not previously present, such as energy renovations, a fireplace or a sauna. 
– Replacement of components with components of significantly higher value, e.g. replacement of fitted carpeting with parquet flooring or installation of a higher-quality and better-equipped kitchen.
– Increase in the volume of the building.
In contrast to the increase in value is the preservation of value. This is the case, for example, when a worn chip carpet is replaced by one of equal quality and price, or when everything is freshly painted.

A term in the rental agreement stipulating that any adjustment of the rent to reflect changed economic conditions must be based on a given index.

The rent agreed on conclusion of a new lease agreement or rental contract.

Synonymous term for insurance value.

The insured value (or assurance value) represents the new-build value of a property. This is also referred to as replacement value (cost of reconstruction). The insured value does not cover the value of the land, nor does it include the value of the garden or any service and utility connections. This value is also known as the fire insurance value.

This indicates what an owner would receive for the reconstruction of his property. In Canton Zurich, insured value is a new-build value without adjustments in respect of the age of the property.

It is also used as the basis for calculating the notional rentable value of a property. To this end, the land value (according to location category) and the insured value are multiplied applying a specific formula to arrive at a taxable value.

Since September 2008, any adjustments to rents due to changes in the mortgage interest rate are based on a benchmark index for the mortgage base rate. This is calculated on the basis of the average mortgage rate charged by the banks rounded up to the nearest quarter of a percent.

Temporarily limited, flexible arrangement, often not purely economically oriented and requiring a relatively small injection of capital, allowing the transitional use of unoccupied spaces or wasteland before these are again made available for long-term use.

All room partitions that do not have a load-bearing function, as well as ceiling claddings, floor and wall coverings.

Investment costs are understood to refer to the total outlay required for a property.

The investment value is usually calculated from the initial investment costs and subsequent value-enhancing expenses.

ISOS stands for “Integrated Strategy for Public Spaces in Switzerland” and is a national program designed to promote cooperation between various public stakeholders in the field of spatial planning and design. As a whole, it forms the Federal Inventory of Swiss Sites of National Importance worthy of protection.

ISOS is part of the Swiss spatial planning strategy and was introduced by the Swiss Federal Council in 2014 without a referendum. The program aims to promote a better understanding of public space, better cooperation between stakeholders and better planning of settlement structures and transport infrastructure.

It supports stakeholders in the implementation of projects that contribute to the achievement of national spatial planning and design objectives. Furthermore, ISOS also supports the processes of participation and coordination in the spatial planning process.

The introduction of ISOS supports the concept of “integrated spatial planning”, in which the various stakeholders in public space pursue a common vision and strategy.

ISOS is repeatedly criticized because the program was introduced without a referendum and repeatedly stands in the way of urgently needed densification , as entire streetscapes, neighbourhoods or villagescapes are suddenly placed under protection.

The thermal insulation coefficient is a measure for assessing the insulating properties of building components. The lower the coefficient, the better the insulation property. Today, we generally refer to the U-value.

Until 1973, the official name of the Klosters-Serneus municipality was Klosters; in the Walser-German local dialect the names are bim Chlooschter and Sernöis respectively, while the Rhaeto-Romanic term for the village is Claustra. Klosters is an independent local authority in the region of Prättigau-Davos in the Swiss Canton of the Grisons (Graubünden).

The community of Laax – known as Lags in the Rhaeto-Romanic – is located in the Surselva region of the Canton of the Grisons (Graubünden) in Switzerland, where the Rhaeto-Romanic (Romansh) dialect of Sursilvan is still spoken locally. The name of the place means "lakes", and the ancient topographical landmarks such as Lavanuz and Nagiens remain a testament to their pre-Roman history.

The land area refers to the area of a parcel of land as marked out and recorded in the cadastral map of the Land Registry.

Can be obtained from the land registry of the relevant municipality and contains all legally applicable data on a specific property.

Relationship between the area occupied by a building and the area of the plot on which it sits, defining the maximum permissible development capacity of the site.

The 'absolute land value' describes the value of serviced and connected but undeveloped land, the 'relative land value' describes the value of  a plot of developed land.

A landform is a natural feature of the solid surface of the Earth or other planetary body. Landforms together make up a given terrain, and their arrangement in the landscape is known as topography. Typical landforms include hills, mountains, plateaus, canyons, valleys, as well as shoreline features such as bays, peninsulas, and seas, including submerged features such as mid-ocean ridges, volcanoes, and the great ocean basins

A landform has a characteristic unity or coherence that distinguishes it from its surroundings. Each has its own terminology, e.g. landforms near flowing water (fluvial landforms), or massive landforms such as mountains, for example.

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When a commercially viable property such as an agricultural concern, a hotel or a business is placed at the long-term disposal of a person or a company in return for payment of a rent for the use and purchase of the associated yield.

The handover of a property for a given period of time in exchange for rental income. Laws governing lettings are laid down in the Swiss Federal Code of Obligations (Schweizerisches Obligationenrecht – "OR" – Art. 253 ff. OR) and in the ordinance regulating the letting and leasing of residential and commercial space (Verordnung über die Miete und Pacht von Wohn- und Geschäftsräumen – "VMWG").

Lenzerheide/Lai – known as Lai in the Rhaeto-Romanic (rätoromanisch) – is a place in the Swiss Canton of the Grisons situated at a height of around 1450-1600m above sea level. The village forms part part of the municipality of Vaz/Obervaz, its governing body. Despite the village having a name of German origin, the Lenzerheide region itself falls within Romansh-speaking territory. The "Lenzerheide" or "Lenzerheidepass" often serves as the nickname for the section of the A-road (Hauptstrasse 3) that leads from Chur to Tiefencastel.

The lettable space (vermietbare Fläche – "VMF") is the area of a property that can effectively be let or offered for lease. It consists of the floor area not including any structural elements or supporting pillars as well as any areas of the building dedicated to connecting areas and service ducts.

In older investment properties lacking CAD documentation, it is often not possible to calculate lettable space applying these criteria.

In such instances, calculations for the occupiable area or living space (Wohnfläche) often include internal partition walls as well as structural elements.

Federal law governing the acquisition of real estate by persons residing abroad. The legislation regulates the extent to which foreigners and foreign companies may purchase real estate in Switzerland.

Light maintenance or small repairs that fall under the responsibility and expense of the tenant in accordance with local practice ( (Art. 259 OR), e.g. the replacement of a shower hose, light fittings and bulbs, roller blind straps or cord, etc.

This value is the bottom-line value for the bank. The bank needs to know what a property can reasonably be expected to sell for under time pressure. Normally, this would involve a very limited marketing period of around 3-4 months. Auctions also often fail to achieve more than the liquidation value.

To calculate the total main or living area of a property, the individual areas of the following rooms are added together: Entrance, living, dining, WC, bathroom, kitchen, built-in kitchen furniture, storage rooms, built-in cupboards, corridors, internal staircases, offices, stoves and fireplaces. Winter gardens may also be included in the living space, provided they are habitable and heatable throughout the year.

However, ancillary areas such as balconies, unheated conservatories, terraces, garages, attic, cellar, handicraft and bicycle rooms may not be included.

This valuation method is based on the principle of a relative value of land in relation to its developed value (post construction). The method is favoured in situations where there are no available data for land disposals. In general, however, the method is not exact – especially in the case of luxury developments on non-prime sites, or where there are very cheap constructions in prime locations.

Influences that determine the value of a location. These include so-called hard factors such as the tax rate or the infrastructure, as well as soft factors including subjectively weighted characteristics such as overall quality of the location, availability of recreational amenities or the political environment.

The location of a property in a wider geographical context.

According SIA ordnance 416, the main usable floor area (Hauptnutzfläche or HNF) is that part of the usable or occupiable floor space (Nutzflächen or NF) that specifically serves the purpose of a bulding's designated use.

It does not include load-bearing walls and external walls (construction areas), secondary areas (e.g. cellars). Somewhat more simply defined: It is the sum of all accessible and occupied living areas including the non-load-bearing interior walls. 

Here an illustration of the standard SIA 416 (Source: Kassensturz Schweizer Fernsehen)

Measures which serve to preserve or restore the original or intended condition of a property.

Measures which serve to preserve or restore the original or intended condition of a property.

Apartment on two floors; also called duplex apartment.

Management services from Ginesta Immobilien in the Zurich area: Professional management for your properties

Ginesta Immobilien is your reliable partner for first-class property management services in the Zurich area. With over 80 years of experience in the real estate industry, we offer customized management services that are tailored to the individual needs of our clients.

Our management services / administrative services in detail:

1. Property management: Ginesta Immobilien takes on the comprehensive management of your properties, from finding tenants to drafting rental agreements and ongoing support. We ensure efficient and smooth management so that you can concentrate on your core competencies.

   
   

2. Accounting: Our experienced team takes care of the entire financial management of your properties. This includes preparing operating statements, monitoring rental payments and handling payment transactions. We ensure that your finances are managed transparently and correctly at all times.

   
   

3. Technical property management: Ginesta Immobilien offers comprehensive technical services to ensure the long-term value of your property. This includes regular inspections, maintenance and servicing as well as the coordination of repairs and renovations.

   
   

4. Tenant support: The satisfaction of your tenants is important to us. We take care of communication with tenants, deal with concerns and complaints and ensure that all legal requirements are met. Our aim is to promote harmonious coexistence and ensure long-term tenancies.

   
   

5. Optimization of operating costs: Thanks to our many years of experience and in-depth market knowledge, we can optimize your operating costs. We regularly analyze expenses, negotiate with service providers and look for potential savings to increase the profitability of your properties.

   
   

Why Ginesta Real Estate?

• Experience and expertise: We have been operating successfully in the real estate sector since 1944 and have established ourselves as one of the leading real estate managers in the Zurich area.
• Individual support: Our focus is on the customer. We offer customized solutions that are tailored to your specific requirements.
• Transparency and trust: Honesty and transparency are the cornerstones of our work. We keep you regularly informed of all relevant developments and are always available to advise you.
• Innovative solutions: We rely on state-of-the-art technologies and innovative approaches to make the management of your properties efficient and future-oriented.

Put your trust in Ginesta Immobilien for professional and reliable management of your of your real estate in the Zurich area. Contact us today and let our experts advise you individually.

Ginesta Immobilien – Your partner for sustainable real estate success in the Zurich area

Our market areas: Greater Zurich region, Lake Zurich, Gold Coast (Zollikon, Küsnacht, Erlenbach, Herrliberg, Meilen, Uetikon am See, Männedorf, Stäfa), Zimmerberg, Winterthur, Zurich Oberland, Glatttal, Near Aargau, Rapperswil

This is a regulatory principle whereby rent levels are freely determined by fluctuations in supply and demand in the housing market.

There are numerous factors that can be valued. Nevertheless, for the most part, only one value counts. Market value is what determines what a property can be expected to achieve under normal circumstances within the framework of a structured sales process. Market value is sometimes also referred to as open market value in valuation textbooks or terminology.

Grundsätzlich gilt, dass privat genutzte Immobilien weder beim Verkauf noch bei der Vermietung der Mehrwertsteuer unterstellt sind. Entsprechend kann auch auf Investitions-, Betriebs- und Verwaltungskosten kein Vorsteuerabzug gemacht werden. Doch keine Regeln ohne Ausnahmen …

Die Erste lautet: Findet ein Liegenschaftsverkauf eines Neubaus vor Baubeginn statt, liegt eine steuerbare Immobilienleistung vor und die Mehrwertsteuer fällt an.

Die Zweite besagt, dass wenn eine Liegenschaft gewerblich von einem Käufer oder Mieter genutzt wird, der mehrwertsteuerpflichtig ist, der Verkauf oder die Vermietung freiwillig der Mehrwertsteuer unterstellt werden kann. Wer mehr über diese Möglichkeit mit teilweise signifikanten Kostenoptimierungen erfahren möchte, dem sei die kompetente Beratung durch einen Steuerspezialisten empfohlen.

Includes a city and its agglomerations.

The closest environment of a property.

Certified construction standard for newly built or renovated buildings that do not exceed a specified level of energy consumption. The targeted standard is achieved by means of a high-quality façade and systematic air renewal.

Anyone who buys a property usually needs one. In return for interest, a mortgagee usually receives a certain amount from a bank, insurance company or pension fund to co-finance his residential property. A lien is placed on the property as security for the mortgage lender. A borrower's note is created for this purpose.

Another term for household effects, i.e. movable property that is not considered to be part of a building or a structural installation.

The "Model cantonal energy regulations" are mainly building regulations in the energy sector. They contain recommendations on how to promote the improvement of the energy efficiency of buildings and energy planning.

A residential building designed for multiple parties on multiple floors. The units can also be divided among several owners through the purchase of rental property shares. These owners thus become condominium owners.

This table reflects developments in prices for significant items and services used in private households. The National Office of Statistics (Bundesamt für Statistik – "BIS") releases indices on a monthly basis setting out the extent to which cost of living expenses have either increased or decreased (irrespective of consumer behaviour or quality of goods).

Income remaining from the sale or rental of an item, net of all expenses.

According to SIA 416 (ordinance of the Swiss Institute of Engineers and Architects), net floor space (Nettogeschossfläche – "NGF") is the part of the overall floor space (Geschossfläche – "GF") lying between the perimeter walls and the interior construction elements.

Net floor space is categorised into usable space (Nutzfläche – "NF"), transit or access space such as corridors (Verkehrsfläche – "VF"), and functional space (Funktionsfläche – "FF").

Rent charged without ancillary costs.

Until the Federal Supreme Court decision in 2020 published below, the net yield was permissible within the meaning of Art. 269 OR according to the case law of the Federal Supreme Court, as long as it did not exceed the interest rate for first mortgages by more than half a percent (refer to Federal Law BGE 123 III 171 E. 6a). Since 1 January 2008, this has been based on a reference interest rate that is uniform throughout Switzerland and is determined quarterly by the Federal Department of Economic Affairs (Art. 12a VMWG). If you add 0.5 % to the current reference interest rate (aktuellen Referenzzinssatz), you get the maximum permissible net yield.

The net return can be calculated with the following formula:
Net return = net rental income x 100 : transaction value

Whereby: net rental income = rent excluding any ancillary costs paid by the tenant and without any provisions or administrative costs that are the responsibility of the landlord (maintenance, vacant periods, etc.).

New case law due to a Federal Supreme Court ruling in 2020
In 2020, the Federal Supreme Court changed two parameters for determining the net yield. In future, the invested equity capital must be fully adjusted for inflation. An admissible net return is a return that exceeds the reference interest rate by 2 percent if the reference interest rate is 2 percent or less (which is obviously the case in this low-interest phase). 

Further information 

Heating that does not burn fossil heat generators (coal, oil, gas). The main non-fossil heating systems use district heating, heat pumps, wood or solar thermal energy.

Describes advance payments made by a tenant for heating and ancillary costs or service and utility charges. There is a distinction between on account payments or flat rate charges. On account arrangements require a breakdown of charges to be submitted at the end of a given accounting period, at which point the account is debited with the effective amount owed, resulting either in a credit in the tenant's favour or in an outstanding debt for the remaining balance.

Overall term covering management costs and overheads, maintenance expenses, losses and write-downs, and risk premiums.

Legislation governing lease arrangements includes the following under operating costs and overheads: council taxes, insurance costs, concierge costs, management fees, heating costs, hot water costs, repair and maintenance charges, etc. Overheads are charged on a regular basis at the end of each accounting period and tend to vary only slightly in their amounts, as opposed to major maintenance work.

There are rules governing which overheads can be passed on the tenant (provided they are included in the terms of the lease agreement, heating costs, concierge costs, insurance premiums for fixtures and fittings required for letting) and operating costs which by law may not be passed on to the tenant (e.g. management and administration fees, costs of repairs, insurance premiums for the property). 

The commissioning of services from third parties.

Definition: A penalty is a payment made by the debtor to the creditor on conclusion of the contract, with the understanding that the giver may withdraw from the contract without giving a reason in return for the return of the amount paid and the recipient may withdraw from the contract without giving a reason in return for twice the amount. If the contract is performed, the amount shall be set off against the claim. The reugeld weakens the contractual commitment. –> Facilitation of the release from the legally valid contract. In other words, the agreement of a reprimand enables both parties to withdraw from the contract arbitrarily.

Shape: In principle, there are no special formal requirements for the justification of a reprimand. However, if legal formal requirements are applicable to the main transaction (e.g. real estate purchase contracts require public notarisation in accordance with Art. 216 para. 1 OR to be valid), these requirements also apply to the agreement of a reprimand. In the case of an agreement on a fee for remorse, any further compensation for damages arising from withdrawal from the contract is presumably excluded and a possibility of reduction by analogy with Art. 163 para. 3 is not applicable.

Differentiation from the Wandelpön: Both the Reugeld and the Wandelpön aim at facilitating a possible withdrawal from the contract. However, the reugeld is already paid when the contract is concluded, whereas the Wandelpön is only payable on the occasion of the withdrawal. In contrast to the convertible penalty, both parties have the right to withdraw from the contract.

Definition: Conventional penalty is the suspensory conditional performance which the debtor promises the creditor through a legal transaction in the event of non-performance, improper performance or late performance of a particular debt.

The debtor is only obliged to pay the contractual penalty if he has not fulfilled the main debt, not properly or late fulfilled it. The legal basis for a contractual penalty can be either a contract or statutes. The agreement of a contractual penalty has an accessory character, i.e. it is added to an existing legal obligation and is dependent on it in its creation, continuation and enforceability. For this reason, the agreement on a contractual penalty requires the same form as the obligation, the non-fulfilment of which is to result in the penalty being imposed. Agreements on contractual penalties can be made at the same time as the main contract or only subsequently.

Assertion of the contractual penalty presupposes that the debtor is at fault for the non-performance or poor performance of the main obligation. It is not presupposed that the creditor has suffered damage (in contrast to compensation for damages), the creditor is consequently exempt from furnishing proof of corresponding damage (Art. 161 para. 1 CO).

Apartment with terrace in recessed top floor.

The statistical number of unoccupied housing units expressed as a percentage in relation to the total available housing stock. Vacant housing stock includes all habitable, unoccupied dwellings (apartments and detached homes) offered with long-term leases or for purchase.

A planning law obligation in the form of payment to the community by the owner of a property in a designated land-use area, the perimeter zone, as recompense for benefits ensuing from jointly financed development projects.

Relationship between the size of the plot and total floor space. Permitted development ratios are governed by indices including a floor space index (FSI), which sets out the maximal permissible development of a plot.

Example: A plot of 1000m2 with an FSI of 0.5 may not exceed total floor space of 500m2.

Further information

This value is solely based on a property's present day usage. If use is not restricted by a covenant or by planning law, then transaction value has to assessed in terms of open market value. Depending on the circumstances, this can be higher and is not necessarily based on a property's current usage. Significant discrepancies in value can arise – for example, when a property is under-utilised (in which case the pure land value would be higher than the perpetuity value of a property).

Use of solar energy to generate electrical energy.

A pied-à-terre is a smaller, luxurious second home in a city that is usually used by wealthy people as a temporary residence, for example for business trips or short stays. These properties offer comfort and exclusivity without the obligations of permanent residence and are often located in desirable urban locations.

Exactly defined land area with a registered identification number.

Strategically managed collection of property assets for investment purposes.

The strengths and qualities of a property are drawn attention to and/or emphasized in order to give it a leading edge on competing properties on the market.

Undeveloped land outside the building zone that could be designated development land in the foreseeable future by virtue of its location.

Also known as a right of first refusal: In the event of a future sale of a property, the owner of the pre-emptive right is entitled to sign the purchase agreement before other bids are considered.

Time and again we offer properties including a preliminary project, which is sometimes a fixed component of the offer and sometimes merely a non-binding recommendation for the ideal use of the property. Preliminary projects are usually commissioned when the current situation is no longer suitable for modern use or the possible potential is clearly underutilized.

A preservation order applies to buildings that are of historic or cultural value in order to preserve their architectural heritage for future generations.

Assessment of the economic viability of a project or investment.

Initiator of a construction project funded with their own capital, but without the intention of keeping the property in their possession.

A property is an immovable tangible asset and may be developed or undeveloped. The synonym for this is real estate.

The value of all goods and services required during a given accounting period for the provision of residential or business premises. This also includes property taxes charged on the land.

The value of goods and services required in the course of the use of a property, such as interest on borrowed capital, operating expenses and depreciation write-downs.

An area of business administration or real estate management that encompasses the long-term and optimal management of real estate over its entire lifecycle. In particular, it also includes the management, letting and marketing of real estate. This can involve the planning and execution of construction projects, as well as commercial, technical and infrastructural facility management for residential and commercial properties. 

The design, realization, management and ongoing development of a property over its entire lifecycle.

Some cantons levy a tax on property ownership in addition to the wealth or capital tax; depending on the canton this is referred to as the “Grundsteuer” or “Grundstücksteuer.”

The proportional share of value reflects a particular unit's apportionment in relation to the overall value of the building. It also determines the extent of the owner's rights and obligations within the community of joint freeholders.

These include streams, rivers and their banks, particularly beautiful landscapes, landscapes of natural or cultural historical value, important sites, historical sites, natural and cultural monuments and habitats for animals and plants worthy of protection.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones; for example, there are five types of zones in the Canton of Zurich. In addition to the free zones, building zones, agricultural zones, recreation zones and reserve zones are also defined and regulated as such.

A person's right, recorded in the land registry, to acquire land at a specific time and price.

District of a town or village.

The task of spatial planning is to allocate land to a building zone. If, in the course of the allocation, it is decided to reallocate building land that has not yet been built on and will presumably not be needed for the next 15 years to the agricultural zone, for example, the process is called rezoning. If the landowner is awarded compensation for the rezoning, the process is called zoning out.

If the allocation were the opposite, it would be zoning.

Also referred to as property or realty: immovable assets comprising land, either developed or undeveloped.

Also referred to as property or realty: immovable assets comprising land, either developed or undeveloped

A real estate appraiser is expected to be an expert in determining the value of real estate.

To do this, it is necessary to be informed about supply and demand on the real estate market, analyze economic trends, economic growth and political processes and take their impact on valuations into account. In addition to preparing valuation reports, real estate valuers must also check the condition of building materials, components and structures, calculate areas and volumes in accordance with spatial planning and building law as well as municipal building and zoning regulations and the Swiss Society of Engineers and Architects SIA, take into account factors influencing value such as agreements under private law, contaminated sites, land register entries and co-ownership and condominium ownership, and carry out clarifications regarding land register entries or limited rights in rem.
 
To work as a real estate valuer in Switzerland, you must complete further training to become a real estate valuer with a federal certificate.

Real estate developers are experts in the real estate sector.

They are responsible for the realization of real estate projects by evaluating suitable plots of land or properties, preparing feasibility studies, contacting authorities, preparing profitability studies for the client and planning the construction project.

In order to fulfill these tasks, real estate developers must have solid knowledge of market research and real estate marketing, investment calculation, planning and construction processes as well as planning and construction law.

The job description of a real estate manager in Switzerland encompasses a wide range of tasks that require a high level of specialist knowledge.

Real estate managers are responsible for the management of real estate and land, including determining value, transactions and legal disputes. They also assist in planning and managing investments in real estate, reviewing financing offers and drafting real estate contracts. In addition, they must know the specific legal requirements for real estate sales and leases. Furthermore, they must be able to analyze complex issues and initial situations and develop practical solutions.

Property managers are also responsible for the organization of personnel caretaking in properties, recruiting employees, organizing the acceptance and handover of properties and drawing up tenancy agreements and amendments to tenancy agreements. They must have a good knowledge of construction technology, building materials and building materials as well as business management tasks.

To practice this profession, real estate managers require further training to become a real estate manager with a federal certificate.

The job of a real estate marketer is to analyze real estate projects and properties, develop and implement property-specific marketing concepts and communication measures, develop negotiation and consulting skills, acquire sales or letting mandates, provide customers with competent advice and successfully handle marketing orders.

This requires comprehensive knowledge in the areas of real estate marketing, negotiating skills, legal and tax knowledge, as well as construction knowledge.

Further training to become a real estate marketer with a federal certificate enables real estate marketers to acquire the necessary skills. In addition to the theoretical content, practical knowledge is also taught, such as project analysis, market research, procurement marketing, sales marketing, presentation and communication techniques, property sales with process, property valuation, financing and property sales from a legal and tax perspective.

To practice this profession, real estate marketers require further training to become a real estate marketer with a federal certificate.

The job description of a real estate trustee consists of a variety of tasks that require a high level of specialist knowledge.

Real estate trustees are typically responsible for the management of real estate and land, including determining value, transactions and litigation. They also help to plan and manage investments in real estate, as well as reviewing financing offers and drafting real estate contracts.

Real estate trustees must also be familiar with the specific legal requirements for real estate sales and leases. In addition, they provide support in the implementation of construction projects, in the preparation of construction plans and review the construction industry.

In order to practice this profession, real estate trustees require further training to become a federally certified real estate trustee.

Represents the sum of the fair and current value of the buildings including landscaping as well as ancillary building costs plus underlying land value.

Structural modification of an existing property in order to adapt it to current and future needs. Also referred to as conversions, such modifications can include modernizations such as adaptations to floor plans, etc. Conversion may be carried out as part of a refurbishment; the definitions are fluid.

In the case of recreation zones, a distinction is made between sports facilities, tennis courts, swimming pools or similar and allotment gardens.

While the construction of buildings that serve the operation of publicly accessible sports facilities is permitted, the restrictions on allotment gardens – or as they are popularly called "allotment gardens" – are usually much more restrictive with clear limitations on area and use. In the city of Zurich, for example, such a small house including a pergola may not be larger than 15 square metres, nor may people spend the night in it.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones; for example, there are five types of zones in the canton of Zurich. In addition to recreation zones, building zones, agricultural zones, recreation zones and reserve zones are also defined and regulated as such.

Structurally-related repairs and enhancements to buildings involving significant improvements as a rule for the purpose of preserving the value of the building substance, including measures to add or improve insulation.

Linking several municipalities in a region in a jointly created institution whose decision-making bodies coordinate supra-municipal planning and zoning issues, thereby serving as link between local authority and canton.

The Land Registry records private and public rights and restrictions in the title deeds of a property.

It is advisable to view the detailed entries and plans pertaining to registered covenants at the Land Registry office or to obtain a copy.

Land value is determined in terms of the possibilities of its potential use.

Relative land value is generally established with a development proposal or feasibility study, which serves as the basis for a backtested calculation.

To cover any major renovation or renewal work required in the future, joint freehold owners contribute a fixed amount of money each year as a provision.

Remedy of defects in the building caused by use over time or weather-damage to restore it to its original standard (original or intended condition).

Sum of money owed by the tenant to the landlord for the permitted use of the rental property.

Anyone who signs a rental agreement usually undertakes to transfer a certain amount to a blocked account as security for the landlord, which can only be released once the agreement has been terminated. This security applies to unpaid rent, ancillary costs or damage to the rental property. Thus, care must be taken to ensure that when the landlord signs the acceptance protocol for a rental property, he also gives written release of the rental deposit if there is no damage. If damages have been caused, the landlord has three months to organize the repairs and wait for the corresponding invoices. The rent deposit may amount to a maximum of three months' rent, including the lump sum for ancillary costs. If no rent deposit is stipulated in the lease agreement, none must be deposited.

If you do not want to or cannot fall back on your savings for the deposit of the rent, you have the possibility to take out a rent deposit insurance (also called rent guarantee) with various possible providers, which covers the above-mentioned risks.

Rent deposit is a synonymous term for rent deposit.

Norms for rents charged in a particular locality or district. The determination of local or district rates of rent chargeable under the terms of the relevant clause of the Swiss Federal Code of Obligations (Art. 269a Buchstabe a OR) depends on comparable rates levied for residential and commercial space of a similar location, size, standard of finish, condition, and construction period (refer also to the regulations governing the letting and leasing of residential and commercial space, Art. 11 VMWG).

Income that an owner earns from the rental of a property. Service charges, which are passed on to the tenant, are not included here. Net rental income is calculated as gross rental income less the costs incurred by the owner in operating the property which cannot be passed on to the tenant.

Outlay required for the construction of a building.

The seller's right to repurchase a property under conditions determined in advance.

This includes land whose use has not yet been determined and the provisions of the agricultural zone apply in the meantime.

The rezoning of a building zone to a reserve zone is also used in part to prevent or delay a rezoning, as compensation is due to the landowner in this case.

At the national level, a distinction is made between three zones: Building zones, agricultural zones and protection zones.

Cantonal law may provide for further use zones; for example, there are five types of zones in the canton of Zurich. In addition to reserve zones, building zones, clearance zones, recreation zones and agricultural zones are also defined and regulated as such.

Number of inhabitants per habitable space.

Long-term housing site planning to avoid conflicts of interest, conserve resources and maintain an attractive living and working environment.

A residential zone is the name given to a zone defined by the zoning plan of the respective area in which certain buildings may be erected. Residential zones are normally classified according to the restrictions on the type, height and floor area of the buildings that may be constructed in them.  

There are three purely residential zones in Switzerland: W1 (single-storey residential building), W2 (two-storey residential building) and W3 (three-storey residential building). Buildings up to a certain height and with a certain number of storeys may be erected in these zones.  

The utilization factor or floor area ratio indicates how much building area may be constructed per square metre of plot area. 

Temporary ban on the sale of a piece of land.

The return on equity is calculated from the net rental income of a property less any interest charges in relation to the amount of equity invested.

The task of spatial planning is to allocate land to a building zone. If a change of zone, i.e. the use of the corresponding parcel, is decided in the course of the allocation, the process is referred to as rezoning.

Allows a creditor to place a lien on a property or have it remortgaged in order to receive payment of his claim from the proceeds.

The law says that a tenant must allow the landlord to inspect the rented property if it is necessary for maintenance, if it is sold or if it is necessary for re-letting.

Regarding inspection for maintenance it is not mandatory that the landlord must have knowledge of a defect or damage in order to be able to inspect a rental property. Thus, it is theoretically always possible for the landlord to visit his property. 

If the property is for sale, the lease has been terminated or the fixed-term lease is about to end, the landlord must be granted access to the property. 

The landlord's effort should be to minimize the disruption to the tenant. Accordingly, visits should be announced in good time, especially if they are to be carried out with prospective buyers or tenants. In the Zurich lease agreement, this early notification is regulated as at least 48 hours. The visiting hours are for business premises their usual business hours, for private premises between 8 a.m. and 5 p.m. and on Saturday mornings. Without good cause, the tenant must allow access to all premises and they should be tidy and cleaned to the extent that an assessment of the condition is possible. If this is not the case and a rental property cannot be sold or re-rented for reasons of tidiness or cleanliness, the landlord may consider suing for damages. 

If the tenant refuses to do so, it is necessary either to take legal action by going to the single judge in summary proceedings and requesting that the tenant be ordered to grant the landlord access for the purpose of inspection, on pain of punishment if he fails to do so. Alternatively, the tenancy may be terminated by ordinary notice or by extraordinary notice after the first written warning. If the landlord suffers damage as a result of a refusal to allow inspection, the tenant is liable for compensation. 

If the tenant refuses the inspection, the landlord may under no circumstances gain access to the property on his own authority or by force, as he would risk being charged with trespassing.

Entitles the party in whose favor it has been agreed to occupy a property or units thereof. In many cases, a lifelong right of residence is registered without a defined time limit. It must be entered in the land registry as an easement specific to a named beneficiary that restricts the right of residence to the registered person, or as a right in rem according the use and enjoyment of the property to family members or care providers of the holder of such right.

A component of the rent intended to compensate for vacant periods between tenants and associated loss of rent.

In Architectural engineering, the roof is a construction that closes off the rooms and surfaces below and thus protects them from the sun, weather and other influences.

A roof usually consists of the roof structure, i.e. the support structure on the building envelope, and a roof structure made of tiles, Eternit, metal or any other suitable material.

There are countless roof shapes, the most important are explained here:

• Gabled roof
• Flat roof
• Shed roof
• Hip roof
• Half-hip roof
• Arched roof
• Barrel roof
• Cone roof
• Gambrel roof
• Tented roof
• Saw-tooth roof

Larger components such as lift superstructures or dormer windows that protrude from a flat or gabled roof.

Living room, bedroom, children's room and study are counted as whole rooms. The bathroom, kitchen and hallway are not considered rooms. There is no legally valid definition for half rooms in Switzerland, but the following custom has become established: Naturally lit and ventilated areas that cannot be counted as rooms are considered half rooms if there is a large eat-in kitchen of 12 m2 or more, a dining area of at least 6 m2 in the kitchen, or an anteroom or hallway with an area of at least 6 m2.

Building parts arranged in a row and provided with a shed roof form in total this roof form is realized mainly in factory buildings and large halls. This is usually arranged so that the incidence of light comes from the north and thus a uniform brightness can be achieved throughout the room without direct sunlight.

Building parts arranged in a row and provided with a shed roof form in total this roof form is realized mainly in factory buildings and large halls. This is usually arranged so that the incidence of light comes from the north and thus a uniform brightness can be achieved throughout the room without direct sunlight.

This is a contractual agreement whereby rents are increased by an agreed amount in Francs on a periodic basis. The lease agreement or rental contract has to be drawn up for a minimum of three years in accordance with the relevant article of the Swiss Federal Code of Obligations (Art. 269c OR).

Scuol – or Schuls in German – is a municipality in the Lower Engadine/Val Müstair region of the Swiss Canton of the Grisons (Graubünden). Until 1943 the place was officially known as Schuls, and since then as Scuol. The name Scuol stems from the Latin word scopulus, meaning cliff, and refers to the location of the San Geer church. With effect from January 1, 2015 Scuol merged with the five communities of Ardez, Ftan, Guarda, Sent and Tarasp to form the greater local authority of Scuol following a plebiscite which won the approval of 80 percent of the population. Extending to 439 square kilometers, Scuol counts as the largest community in Switzerland in terms of reach, a place formerly occupied by South Glarus. At the same time, it's 4,700 inhabitants make it the largest Romansh municipality in the whole of the Grisons.

Dwellings that are not used permanently, are not used for professional or educational purposes and do not have a tourist management purpose are considered to be such dwellings.

The law, which came into force on January 1, 2016, is the implementation of the popular vote of March 11, 2012 on the approved popular initiative "Stop the rampant construction of second homes", colloquially known as the "second home initiative". The law prohibits all municipalities in Switzerland in which the proportion of second homes exceeds 20 percent from building new second homes or granting the corresponding building permits.

See rent deposit

The Ginesta sales prices include the property according to the notarial certification and all our intermediary costs, as these are paid by the seller. Not included are the costs for the notary, the registration in the land register, these for the establishment of a mortgage note, if the property is partly financed with a mortgage and, depending on the canton, a transfer tax.

Servitudes and easements are agreements between two parties that are entered into the Land Registry records for the most part. Some are rights, and some are obligations. When purchasing property, it is always advisable to scrutinise the Land Registry and to talk to the Notary Public or licensed conveyancer. Obligations, in particular, need to be carefully examined.

Servitudes and easements can, but do not necessarily, affect value. A servitude or easement can normally be removed from the records provided both parties agree and formally sign to that effect at the Notary Public / Land Registry.

A flat roof surface with a slope of more than 10 degrees.

If the slope is smaller, one speaks of a flat roof.

A multi-story and vertically oriented building, usually used as a residential, office and commercial property, with an overall height of 150 meters or more. In Switzerland, only two buildings currently fulfill this requirement: Roche Tower 1 and 2 with heights of 178 and 205 meters.

Buildings with this type of use and a height of 30 meters or more are considered high-rise buildings according to the Swiss definition of the Association of Cantonal Building Insurers.

Buildings that save a lot of energy thanks to technological control and monitoring of the energy supply.

Solar thermal energy is mostly used to produce hot water. It can thus supplement another heating system. Photovoltaics is also based on solar energy. It is used to produce electricity and supplements a heat pump. In Switzerland, the potential for solar thermal energy is very large.

The right of a condominium or joint freehold owner to enjoy private use of common parts of a property such as a garden, roof terrace or car park.

St. Moritz – known as San Murezzan in the Rhaeto-Romanic, or San Maurizio in Italian and Saint-Moritz in French – is a municipality (politische Gemeinde) in the Upper Engadine district (Kreis Oberengadin) of the Maloja region (Region Maloja) in the Swiss Canton of the Grisons (Kanton Graubünden). Locals still call the village by its traditional name – ils draguns, or "the dragons". The place's coat of arms bears an image of Saint Mauritius, after whom the village is named. St. Moritz gained worldwide fame as a spa resort and winter sports attraction (Wintersportplatz) after the Winter Olympics were held here in 1928 and 1948.

Part of the construction industry that plans and constructs buildings above ground, including those that are mostly below ground, but which are accessible and usable by humans.

The structure plan is an instrument of Swiss spatial planning and is used at communal, cantonal and federal level (Federal Act of June 22, 1979 on Spatial Planning, RPG 1 for short).

It serves to coordinate spatially effective activities such as settlement and transport development, infrastructure planning and the protection of nature and landscape.

The structure plan defines the canton’s planning intentions and coordinates them with federal and municipal projects. It also regulates the planning of larger projects such as leisure or shopping centers, with binding rules over a longer period of time.

The renting on of a rental property or parts thereof by the tenant to third parties.

In accordance with the relevant article of the Swiss Federal Code of Obligations (Art. 79 OR), a rental property must be returned during the course of normal business hours on the last day of the agreed rental period (date of expiry of contract). However, variations are permissible – it is accordingly advisable to refer to the signed lease agreement.

In the event that the tenant refuses to surrender the rental property within the time specified, the landlord has the legal right to have him ejected.

A purely Swiss term denoting the tax rate set annually by the municipalities and the canton. This factor is defined as a percentage in relation to the basic rate, the simple state tax, and results in the amount of the municipal tax. This tax rate can vary greatly within a canton, for example in 2021 in the canton of Zurich the lowest is 72% without church tax (Kilchberg) and the highest is 129% (Maschwanden, Wila and Wildberg).

The value of a property is part of the total net assets and is taxable at cantonal level, although the principles are not uniform in all cantons.

Electrical fixtures and fittings in a kitchen, utility area, etc. including hobs and ovens, refrigerators, washing machines, dryers, and so forth.

A special form of hip roof, where the four roof surfaces converge at one point without a ridge. A very suitable roof shape also for buildings with more than four corners.

The social movement to live in houses that are as small as possible originated in the USA and aims to conserve resources while focusing on the essentials. There, the movement also received a strong boost from the financial and real estate crisis starting in 2008. Tiny houses are freestanding and immovable housing units with a maximum area of 45 m2. In Switzerland, this form of housing is not very widespread, as it is often very difficult to find a parking space legally.

The transaction is synonymous with market value. This value also gives an indication of how much a property can be expected to achieve when sold under normal circumstances.

Where the rental price for commercial premises is calculated on the basis of the business performance of the tenant.

Unterhaltskosten sind Aufwendungen, die dazu dienen, eine Liegenschaft in ihrem Wert bzw. bisherigen Zustand zu erhalten. Man spricht deshalb von werterhaltenden Kosten. Werterhaltende Unterhaltskosten wie auch Versicherungsprämien, Verwaltungs- und Instandstellungskosten in Abzug gebracht werden. Bei selbstbewohnten Liegenschaften gehören Strom-, Wasser-, Hauswartskosten und ähnliches natürlich nicht zu diesen Unterhaltskosten und sind entsprechend nicht abzugsfähig.

This is understood to mean improving the possible use of an existing building zone. For example, the addition of more storeys creates new living space without the need for additional land to be zoned.

Also referred to as overdevelopment, the unregulated overspill of residential or commercial premises into undeveloped municipal territory. The more land is built on and the less land already built on is used, the greater the urban sprawl.

Under the terms of ordinance SIA 416 of the Swiss Institute of Engineers and Architects, the usable space (Nutzfläche – "NF") constitutes part of the net floor space (Nettogeschossfläche – "NGF"). It includes the main or primary usable space (Hauptnutzfläche – "HNF") and the ancillary or secondary use space  (Nebennutzfläche – "NNF").

Period during which an asset can be used for operational purposes.

Temporary right to the use and enjoyment of a property.

The utilisation reserve indicates the ratio between the existing gross floor area and the maximum permissible gross floor area.

This ratio indicates the intensity of use that a property may have. For example, a W2/25 zone allows a property owner with a plot area of 1,000m2 to build 250m2 of living space on the two main floors.

The 25 therefore stands for 25%. It is advisable to consult the local building regulations in detail.

Depending on the municipality and canton, the utilization can be interpreted as HNF, GF or BGF.

Thus, unused or unrented but immediately occupiable buildings and residential/commercial units in private or public ownership are referred to. Developed but undeveloped land, on the other hand, is referred to as wasteland.

The value-added tax is a tax levied on land and real estate in Switzerland. It is levied exclusively on the “unearned” added value resulting from spatial planning measures.  

For example, a value-added tax is levied when a property is zoned from an agricultural zone to a building zone , which increases the value of the property. The value-added tax is handled differently in each canton and there may be different tax rates, exemption limits or exceptions.  

As a rule, the minimum levy is 20%, whereby the revenue must be earmarked for compensation for zoning out or other spatial planning measures. There are also some cantons that have exceeded the 20 % rate.

Computer animated images of planned buildings, furnished residential or business premises or of urban developments which appear so lifelike that the visual impression has emotional impact, giving a real feel for the project.

The VMWG regulation (Verordnung über die Miete und Pacht von Wohn- und Geschäftsräumen – "VMWG") is an ordinance governing the letting and leasing of residential and commercial premises.

The tax levied at cantonal and municipal level covers real estate as private assets minus debts.

Scheduled devaluation of assets.

In the case of rented properties, the return is derived from the capitalized earnings value. 

Here you can find more information on gross yield and net yield.

On the one hand, there is a constant need for new building land, on the other hand, an orderly settlement is strived for. The task of spatial planning is to allocate plots of land that can be built on to a building zone. If, in the course of the allocation, a decision is made to turn, for example, a parcel of land from the agricultural zone into building land, the process is referred to as zoning. If the allocation were the opposite, it would be a rezoning or a zoning out.

The zoning map sets out which particular areas or districts of a municipality or city belong to which zone.

There are distinctions between building zones and zones outside areas of development (such as woodland, zoning reserves, agricultural land).

The zoning map generally indicates in which zone a given parcel of land is located. Referring to the building and planning regulations (Bau- und Zonenordnung – "BZO") will determine what the permitted development possibilities are.

The task of spatial planning is to allocate land to a building zone. If, in the course of the allocation, it is decided to reallocate building land that has not yet been built on and will presumably not be needed for the next 15 years to the agricultural zone, for example, the process is called rezoning. If the landowner is awarded compensation for the rezoning, the process is called zoning out. 

If the allocation were opposite, it would be zoning.