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Old 29.11.2020, 18:47
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Re: Raising of maximum allowable ROI on rental property from 0.5 to 2%

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switching back to Switzerland - does it make sense to invest in rental property here in Switzerland?
my quick insights so far : bank will need your own equity of say 25% to even 30%
you can not bring your 2nd or 3rd pillar chf for this

so wondering for example for a property of 850k , with potential rent 2200 chf/month would it even make a reasonable investment? (considering no major renovations in the coming 5 yrs at least... and assuming other (if any) criteria as normal... at least not extremely odd
250k deposit and 600k mortgage @ 1%

assume maintenance costs of say 8k per year

--> costs = 14k per year

--> rent = 26k per year

--> 12k / year return on 250k + growth in property value

So without property value increase, a fairly poor investment. You can work backwards from what growth you think is reasonable to see what the property growth has to offer to make it a good investment.

You could also make some assumptions like reducing the costs or increasing the rent - which increases your risk.
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