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Old 10.11.2020, 10:56
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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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If we are talking about the primary home you need a place to live in for piece of mind. Personally, I have rented for many years and I am tired of renting. Therefore it is not appropriate to see it as an investment if it is your 1st home.

However, I think that in the present situation you will get more returns from investments in stocks and other liquid assets rather from real estate (unless you can find an opportunity and do some upgrades/renovations). It is more complicated than that because tax regime also will determine the returns.
Why can't a first home also be an investment?

Many people build up equity in a relatively larger family home, and then downsize on retirement to take the equity out.

In Switzerland this seems to be particularly common, and I know three families where retired people handed on the family home to their children who had their own young kids, in two cases swapping it for their flat.

I don't know the financial situation of the above cases, but if I was the parent I would sell my house on to one of my kids at a good price, give half the profit to the other, and then add the remainder to my savings.
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