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Old 21.04.2020, 11:53
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Re: Sell or not to sell

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Here's another subjective opinion...since you are not desperate on debt suggest you take macro view considering following points.
1. Governments worldwide are printing money like crazy to counter Covid-19 economic effects, so higher inflation in future is probable.
2. People will always need places to live regardless if they rent or buy. So demand will be there, what changes is how they will finance the need.
3. If you rent out, you will save property management fees other landlords have so slightly better profit for you vis-a-vis competition. Also, regardless of market price, it's only a loss if you sell (which you won't since you live there.)
4. What would you rather have, an extra CHF 45k pile of depreciating cash or a hard asset which will likely provide income for the rest of your life with minimal extra work?
IMHO - having the rental unit looks pretty good.
Remember Demand is the ABILITY TO PAY, in CH the amount you can spend on rent is governed by your earnings. Ability to pay is currently a huge risk for landlords going forward.

Net return of property is appallingly low after repairs & refurbishment, probably negative cash flow over time as rents don't go up if the Tennant stays. The tenant could be paying the same as 25 years ago or even less as interest rates were over 3.5% back then.
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