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Old 29.04.2020, 09:18
memihai memihai 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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rule of thumb is that the property should not cost more than 200 times the monthly rent. preferably not more than 120 times the monthly rent. obviously, at current valuations, there are few properties suitable for rental investment.
Does this rule of thumb apply for countries where a bank credit for a property is completely paid out within 25-30 years? Or also for Switzerland?
Because if you count 2000 CHF x 200 = 400,000 CHF it is hard to think that the same property that you rent for 2000/mo can be purchased for 400k CHF.
Or the other way round.

IMO buying to rent in Swizerland is not the same as buying to rent in other countries. As a hypothek credit owner you basically bear all the risks and as an owner have all the costs of maintaining the property.

example in Luzern: found a 40-year old 51/2 room apartment, about 800K. You could rent it for 2000-2500 probably.
have found that water plumbing will need replacement, 16K, building cover and insulation 36K. These will need to be done together will all other owners in the block. How will you scrap 16K + 36K + probably later 20K to change the kitchen?

Add sitting on a credit at the minimum historical interest rates, which will need to be renegotiated when you renew it. At the interest rates from then.

add the risk of purchasing property that maybe your future wife won't like...

Last edited by memihai; 29.04.2020 at 10:11.
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