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Old 29.04.2020, 08:40
ticinoLove ticinoLove is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

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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.

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.
Thank you for the answer!
If I don't go with the House buying route, the idea of buying 1/2 properties to rent out seems the most appealing one.
Could I ask you more informations about this, or a pointer where I can find more info?
Mainly about:
-how can I know if the price of the property is right, based on how much it would rent out for? Is there a magic number I need to look for?
-what are some hidden expenses? Or the ones that you talk about are all I can expect? and if you talk numbers, could you show me a classic example, for a flat that costs X to buy, and rents for Y, with yearly Z expenses, so I have an idea of the return.

Thank you very much
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