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Old 03.09.2015, 21:22
saiya-jin saiya-jin is offline
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Investing long term - buying a rental property vs trading index funds vs?

Hi,
I am considering buying some rental property in French alps. I would use it only in cases there is no rental for it. Found something interesting to me, and for the price I would need to take a 25 years loan for amount that I can comfortably afford to pay, and rental would be helping to lower the payments (in winter paying them easily for given month). To make things easy let's say lowered would cost me 1000 chf/month on average, and property is 600k chf.
After those 25 years, I would have paid 300k directly, plus some upfront cash, I would end up with property of probably higher value, but there is risk prices might also go down.

When I put into calculator 3% net income (fictional amount, but maybe achievable) over 25 years, result is over 2x. Compound interest my ass.

Any ideas what else to do in a relatively safe way, ie some Vanguard continuous investment? Not into too risky stuff
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