Update on the purchase of our apartment

Dear all,

I would like to update you on where we stand on the purchase of our apartment.

So to recap it is what we paid so far:

  • 14th of June: Account for the land purchase = 142’000 CHF
  • 13th of October: Final payment of the land purchase + Notary fee = 175’000 CHF
  • Meaning we still had 212’970 CHF of our equity

As you know based on Architect contract Mortgage for our new apartment, we have down payment to execute at different stages of the construction. The payement schedule, I described in the post linked (above) has been updated when we signed the contract. Therefore the first payement was 60% of the apartment value minus our own equity. So we received a bill of 729’600 CHF, I can tell you this is the largest bill ever, I received and have seen. I sent this bill to our banker to pay and to engage our construction credit. It was paid on the 25th of October.

We have now started the world of debt, which as a value of 516’630 CHF.

The next down payment, will be of 10% when the constructor reach the 3rd floor, based on the status of the construction, I am expecting to happened in Q1 2017.

And you any news?

Cheers

RA50

 

Portfolio Increase

Dear all,

I am pleased to announce that we purchased 52 shares of Roche (ROG.VX) at a cost of 233.7 CHF, including the taxes and broker fees, our new selling price is 257.9 CHF vs. 266 CHF that we had with the 110 shares we own before

Considering the actual dividend distribution (8.40CHF), our 2017 dividend distribution  will be 830 CHF net. But we are planning to continue investing in early 2017, when I will receive my annual bonus, I am expecting to invest around 30’000 CHF.

The portfolio page has been upgraded.

Any purchases from your side?

Cheers,

RA50

Blogging or resting

 

Dear FI seeker,

You may wonder why, our blog remains empty for weeks? The main and only reason is that I am so exhausted after 11-12 hours of work + having 1h30 min of commuting every day that my brain just need some rest, a good dinner with my lovely wife, some reading and sleep, which unfortunately these days is not always coming quickly, therefore when the alarm clock ring at 5 AM, I am like a zombie. But I am lucky, a shower a coffee and then I am like new.

As you remember, I change work in October 2015 (Job, functional move and salary increase), with more responsibilities, a team, a good project on hand and salary + bonus increase.  But due to a strategic decision from our Senior Management Team taken 18 months ago and a massive project deadline for the end of this year, we are sinking in hours of works, to identify gaps, issues and trying to solve as soon as possible.

On top, one of the project manager that is working in the same team, had a burnout, guess what, we had to relocate our resources, to ensure that his work would be done.

So, after almost on year, minus 20 days, I am very often thinking if that move was the right one for me.

Ok now from the positive side, nothing special for our apartment, I received the offer from the electrician, which we already review during a meeting. Now waiting the revised offer, hoping that would the last one. So we should be close to 6500 CHF of added-value, but if you remember my negotiation with the Architect (Discount on our future apartment), where I have been able to negotiate 15’000 CHF of reduction, we are fine, even if I had the 6000 CHF of the bathroom added-value we have a total of around 125000 CHF. So the 2500 CHF will allow buying the washing machine quite easily.

Dear friend, I wish you an excellent weekend, hopefully for you has beautiful that in Switzerland.

Cheers, RA50

Update on the purchase of our apartment

Hello dear FI,

Below some update on where we stand on the purchase of our apartment.

As we are buying on drawing, we have specific budgets for the Kitchen, Bathrooms (2x) and electricity. For the last couple of weeks, we have visited the different companies that must use which are defined by the architect.

Kitchen: our budget is 30k CHF, 2 kitchen builders are proposed. 3 weeks ago, I went to the first one and we just received the final quotation last Friday. We had a good surprise as we are around 500 CHF below budget. Yesterday, I visited the second company, and too my surprise, the design of the kitchen was very different, so I have ask to redesign to be like the first one, which is much more practical and nicer and the electronics (oven, fridge, washing machine) selected was lower models than the first company. So based on this discussion, I don’t think we will work with them.

Bathroom: our budget is 14.5k CHF for 2 bathrooms, a big one and a small one. I must say that after visiting the company that will provide it, this budget is very small, especially as we want to make some changes (Italian shower vs. bath tube) and a double sink vs. one sink. Our budget exploded by 6k CHF to around 21.5kCHF

Electricity: budget not known but we know the number of electric appliance and light points and if you want to see something at night, there is no way that you can just agree with the budget. Therefore, during the meeting with the electrician, I increased the number of electric appliance and light points. The apartment is coming with domotic, I have selected quite nice feature. So I expect the quotation, to increase by 5k to 6k.

So overall for the 3 points of the personal modifications, I estimate that we will be additionally by around 12-13K. Well that’s not a problem, as we got a special discount of 15k when I negotiated the price of the apartment (Discount on our future apartment). So we are still within our budget and we can still buy/update some of the positions.

Later, we will need to chose, the tiles (bathroom) and the wooden floor, but I believe with the budget, we should remain fine.

And you, any news anything particular?

As said, at the moment, nothing happened on the market side, we have not purchase anything as we must recharge our accounts.

Cheers,

RA50

 

Yes, we have signed the contract for the building of our apartment

Dear FI,

Another step in our objective to own an apartment in Switzerland, we have signed the construction contract with the architect as well as we bought the part of the land that we own based on the surface of our future apartment.

I must say that we are very happy but at the same time, a bit stressed because you know that now you have a big debt to the bank and that you hope that nothing will happen: lost of my job, accident, and worst death. so yeah, doing this crazy purchase is quite stressful.

The construction of the building has started 2 months ago with first, the destruction of of the old house. Then they dig around 10 meters for the foundation and the garage. So there is not much except a big hole in the middle of the city.

Looking forward to see some part of building coming up the ground.

I will update you soon with our financial.

Wish you a good weekend and best regards

RA50

2015 final tax declaration

Dear all,

Long time not having wrote a post, but nothing really interesting happened, market is so volatile that we are hesitant to enter. anyway, we don’t have too much cash available as a big chunk of it is reserved to buy our apartment (Mortgage for our new apartment).

Right, so let’s come back to the purpose of this post, 2015 final tax declaration. If you follow us, you will see that last year was a very good year in term of revenues:

Therefore compare to 2014, our total revenue is significantly higher and I was started to be scared of how much, we would need to pay for the reconciliation our tax declaration. If you remember, we had a very surprise in December 2015 when the tax office declared that we paid to much tax in 2014 (around 15k- Christmas present before the 25th).

So today, I received from out tax guy a fairly good news, that he is expected that we need to pay 1715 CHF additional taxes.

So now we need to wait that the tax office compile and confirm our declaration and final payment.

In the next days, I will have some new posts as we are moving into the process our purchasing our apartment, so stay tuned.

Cheers and good weekend.

RA50

Discount on our future apartment

Dear all,

I hope everybody, is doing fine in this fluctuating market?

As you know, we are in the process of purchasing an apartment in Switzerland. 2 weeks ago, the architect office responsible of the whole project offered a discount on the remaining apartment, as it was probably difficult to sell them all. When I saw that, I jumped on my phone and called our contact and request some general explanation on the status of this project and at the end, I mentioned that I saw the price reduction and I wanted to know if they could do something for us. The person said that we were able to select the best apartment before everybody else and that only the less attractive lots remain, she was not sure, she could offer us a price reduction but she would come back to us.

So Last Friday, the person contacted me and says that they cannot make the same discount that for the remaining lots (2.5%), but she can give 1% or 15K CHF in our case. As I was not expecting to get something, I am very happy with the results of this quick phone call, this reduction, will allow us to buy extra stuffs when we will move in.

By the end of the month, we should have signed the contract and started to spend our own equity. I will keep you inform of this.

Cheers and good Sunday.

RA50