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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. | |
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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