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-   -   Reevaluating my life and need advice please. (https://www.englishforum.ch/other-general/112995-reevaluating-my-life-need-advice-please.html)

05.05.2011 12:03

Re: Reevaluating my life and need advice please.
 
OK IMO the OP is living in the wrong country. His money will go further elsewhere, and property investment isn't a great move here. It's also important to understand that a property isn't an asset if you live in it. It's all well and good saying "if I sell it I'll make X" or "if I rented it I'll earn Y" but most people never do because they live in it. Rather rent a cheap apartment where you'd like to live and buy cheap apartments with the CHF 400k (you can get 2 flats in London for this amount, no mortgage, generating total income of 1500 GBP per month) where you've assessed would be the best investment class. Also, property is no better than anything else (for those who've been lucky enough to own property in the UK over the last 15 years, no, it doesn't always go up) so consider diversifying your investments across multiple asset classes. In fact the very act of buying a property in one country and living and working in another is diversification in and of itself. Having all that cash with nothing to spend it on and no dependants puts you in an incredibly powerful position such that, with a low expenditure, you need never work again.

The_Love_Doctor 05.05.2011 12:18

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by economisto (Post 1186925)
Rather rent a cheap apartment where you'd like to live and buy cheap apartments with the CHF 400k (you can get 2 flats in London for this amount, no mortgage, generating total income of 1500 GBP per month)

Agree with most of what you say... But I would be very surprised to find 2 apartments in london with a yearly rental yield of around 6.5% based on the exchange rate of 1.42 franks to the pound...

I am not an expert on properties in London (or anywhere for that matter) but I believe a flat in london for GBP140k is gonna be of low quality and probably won't generate GB750 a month :(

Phil_MCR 05.05.2011 12:18

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by economisto (Post 1186925)
It's also important to understand that a property isn't an asset if you live in it.

why not? you'd save an amount of rent (less taxes) each month.

Rangatiranui 05.05.2011 12:23

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Chemmie (Post 1186889)
hehehe I don't think your wise friend properly understands the definition of lucky :D

;)
I think everyones definition of "lucky" is different.

Quote:

Originally Posted by The_Love_Doctor (Post 1186896)
that maybe the case however the opposite is not necessarily true...

hard work is not necessarily the cause of success and success is not necessarily the effect of hard work... ;)

thats definitely true.
often, it is those that work the hardest that are the poorest.

i am talking about those that work hard at being lucky.

Like, being "lucky enough" to pass an exam..

However we are derailing this poor mans thread.

Any ideas on how he can re-evaluate his life - those that have been there?

Those that might be a few years older, and have been at this point of self evaluation?

NotAllThere 05.05.2011 12:29

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Rangatiranui (Post 1186965)
Any ideas on how he can re-evaluate his life - those that have been there?

Charity work?
Go and spend a few months helping out in a Kenyan orphanage?
Book into a monastery in the Syrian desert?

Chemmie 05.05.2011 12:31

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Rangatiranui (Post 1186965)
;)
I think everyones definition of "lucky" is different.


I get it, so to be wise like your friend, the key is to make up smart sounding quotes, then change the definition of relative words to suit the situation best. :D

05.05.2011 12:31

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by The_Love_Doctor (Post 1186952)
Agree with most of what you say... But I would be very surprised to find 2 apartments in london with a yearly rental yield of around 6.5% based on the exchange rate of 1.42 franks to the pound...

I am not an expert on properties in London (or anywhere for that matter) but I believe a flat in london for GBP140k is gonna be of low quality and probably won't generate GB750 a month :(

The closest I can get to this example is a property I own. Cost 153k, rents for 830 pcm. Very small place, semi-acceptable neighbourhood, 5 mins walk from a zone 2 tube station.

Jaro 05.05.2011 12:31

Re: Reevaluating my life and need advice please.
 
move here:

http://www.vilcabamba.org/article.html

05.05.2011 12:37

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Phil_MCR (Post 1186953)
why not? you'd save an amount of rent (less taxes) each month.

Yeah, technically but we're talking about one-property equivalent here and therefore you'll almost always only be theoretically right. In reality so many people have a net worth of 1.2 million GBP of which 1.1 is frozen in the property they live in. Reality is, they shouldn't be living in such an expensive property in the first place so selling it, buying 8 small flats, renting them out and using the yield to rent a place to live in, in a location they like means the have a proper, passive income generating asset.

marton 05.05.2011 12:47

Re: Reevaluating my life and need advice please.
 
Buy some car park places in underground garages in Zürich. You can rent them out for at least 180 CHF per month so you will have a basic income. Most central Zürich park garages charge over 300chf per month.
There are none of the usual headaches when renting; no variable nebenkosten, no worries about tenants doing damage or arguments about cleaning the place when changing tenants.

You will get about 6% annual return on your investment which is better than the post office.

nigelr 05.05.2011 12:51

Re: Reevaluating my life and need advice please.
 
Just relax about it. When the time is right the answer will come to you. If you force something now then it might be the wrong option.

Personally if it was me I would move to a cheaper country and start my own business using a maximum of 200K. If it all goes pear shaped then you still have 200K to get back on your feet again.

05.05.2011 12:52

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by marton (Post 1186999)
Buy some car park places in underground garages in Zürich. You can rent them out for at least 180 CHF per month so you will have a basic income. Most central Zürich park garages charge over 300chf per month.
There are none of the usual headaches when renting; no variable nebenkosten, no worries about tenants doing damage or arguments about cleaning the place when changing tenants.

You will get about 6% annual return on your investment which is better than the post office.

The downside I can see to that is that you're subject to planning and policy shifts with regard to parking. Someone could build a multi-storey next to your spaces and undercut you.

terco 05.05.2011 12:57

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by V__ (Post 1186556)
First, let me say that I have no idea how it works in Switzerland

A quick search with google gets you this (among many other things): "Switzerland has the lowest home ownership rate in Western Europe by a significant margin".

Are they rich and stupid? ... or is there something we don't know?

Some light reading: "Why do the Swiss Rent"
http://www.bem.edu/bem/content/downl...ile/114-07.pdf

I believe buying property is not a good investment in Switzerland, of course, it is a different matter if you want to live in it.


How much of the 400k are you willing to lose? What about starting a business?

SOBEIT 05.05.2011 12:57

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by economisto (Post 1187010)
The downside I can see to that is that you're subject to planning and policy shifts with regard to parking. Someone could build a multi-storey next to your spaces and undercut you.

Not if its below the ground you built your house on

p42 05.05.2011 12:58

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by marton (Post 1186999)
Buy some car park places in underground garages in Zürich. You can rent them out for at least 180 CHF per month so you will have a basic income. Most central Zürich park garages charge over 300chf per month.
There are none of the usual headaches when renting; no variable nebenkosten, no worries about tenants doing damage or arguments about cleaning the place when changing tenants.

You will get about 6% annual return on your investment which is better than the post office.

It is not easy. Lots of new blocks going up with parking as competition.

People are moving away from personal cars, especially as public transport improves, Mobility type schemes get better and oil prices rise. Once interest rates start to rise, 6% might not look so attractive for an asset in decline. You might have to sell on with 8% yield. Properties in former East Germany
can yield 20% easily. Yield and possibility for capital gain. I wouldn't necessarily advise that though.

puddycat 05.05.2011 13:10

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Seb70 (Post 1185873)
I did not know which section to post this under or what exactly I am asking but I will try. I am 41 year old single male and don't have any responsibilities as such. No kids or divorced partners. I live in rented accommodation and currently don't have free flowing steady source of income.

On the flip side working hard has resulted in me saving CHF 400k and it is just sitting in my Post finance savings account. To be honest I don't know what to do with this money. I was thinking about buying an apartment but 400k would not get anything in Zurich. Also with no steady source of income will any bank even look at me?

Any general advice on my situation would be highly appreciated.

If property is what you're after, next Summer I'll be selling a flat (15mins drive from Zürich, 4.5 rooms, lovely quiet neighbourhood). I don't expect the market rate to be over 500k :D. PM me if you're interested.

All the best with your stacks of cash, either way you go :).

Puddy.

marton 05.05.2011 13:22

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by economisto (Post 1187010)
The downside I can see to that is that you're subject to planning and policy shifts with regard to parking. Someone could build a multi-storey next to your spaces and undercut you.

You do not know a lot about Swiss politics do you?

They are more likely to pull down multi storey parking than build new.

Phil_MCR 05.05.2011 13:25

Re: Reevaluating my life and need advice please.
 
6% rental yields is about right for london. it was 10% if you bought well.

the rule of thumb used to be buy at 10 and sell at 6.

Phil_MCR 05.05.2011 13:33

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by marton (Post 1186999)
Buy some car park places in underground garages in Zürich. You can rent them out for at least 180 CHF per month so you will have a basic income. Most central Zürich park garages charge over 300chf per month.
There are none of the usual headaches when renting; no variable nebenkosten, no worries about tenants doing damage or arguments about cleaning the place when changing tenants.

You will get about 6% annual return on your investment which is better than the post office.

hmm. actually, a few months ago i did look at whether i could buy parking spaces in zurich and what yields i could get. unfortunately, i couldn't find any parking spaces available to buy!

The_Love_Doctor 05.05.2011 13:38

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Phil_MCR (Post 1187046)
the rule of thumb used to be buy at 10 and sell at 6.

Looks like economisto might have a buyer for his property in London then :D


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