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Old 29.04.2020, 01:05
CH_Me CH_Me is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

A house might be too big and too much work for you now.

Well done on saving up 200k - you would be surprised how many people can't do that, even on higher salaries. There are many things you can do with it. Do you pay into your Pillar 3 account? You could invest it in an index tracker fund, DIY on Interactive Brokers, or buy a smaller apartment that you could then rent out for a side income when you need a bigger place.

Personally, would put the 200k down on an apartment or 2 apartments that could generate a side income. By your age I had a handful of rental flats generating more than my salary. I've scaled that back now i'm in my 40s.

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I also read people suggesting buying a property to rent it out, but then, what are the numbers there? is there a calculator or guide to check how much would be worth renting out something, considering the price of the estate, interest rate and so on.
You pay around .95% interest yearly, 5 year or 10 year fixed on the amount you borrow, simple interest in Switzerland. Look at similar properties and what they rent for. Take off expenses: communal building fees and agency fees and that's what you make before taxes and repairs and maintenance expenses. Tenants pay charges like water usage and fire service in CH.
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