View Single Post
  #71  
Old 09.06.2020, 21:58
Phil_MCR's Avatar
Phil_MCR Phil_MCR is offline
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,692
Groaned at 284 Times in 189 Posts
Thanked 18,548 Times in 7,787 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Is it worth buying a flat in Switzerland?

Quote:
No sure I get what you mean by this, when interest rates are so low.
what i mean is, while interest rates are low, let's say you pay 1% interest on 1000k property. so 12k interest per year. accumulating an additional 20k of capital on the side each year, you will pay off the property in 50 years.

in a 6% pa interest rate environment, you buy a 200k house and pay 12k interest per year. accumulating 20k of capital on the side each year, you pay off the property in 10 years.

people make the mistake of looking only at the interest affordability and ignoring the capital element.
Reply With Quote
This user would like to thank Phil_MCR for this useful post: