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Old 18.06.2019, 12:39
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Re: investing in real estate vs buying property

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You are incorrect, Banks do foreclose especially in a falling market to reduce their losses. They have to increase tier 1 capital depending of the 'status' & quality of their loan book or they could get closed down by the regulator. If a payment is late or at loan renegotiating a Bank can recall the loan, thats in 5 years time if you took out a 5 year fix.
This is true. Also if a bank sees that you have taken a lifestyle change, got divorced, they can recall the loan at the end of the period. Even if rates are lower, and it is more affordable in real terms, if you don't meet their income tests, etc. You need to keep looking good on paper for them to stay your lender.

It took me a couple of years to find something "good" in ZH. I have seen several potentially good properties in ZH since, of those I know that 2 of them actually turned out to be really good deals at the time. Both just under 20 mins from Zurich HB and very near stations. One of those got over redone at great expense so negating the benefit of the initial shrewd purchase. The other is ongoing, still being over done in my view, but the purchaser is doing a lot of the work themselves, labour of love style. Hopefully that doesn't end in divorce/unfinished project.

Last edited by p42; 18.06.2019 at 13:25.
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