Due to lack of cash, many young people decide to rent a house rather than buying real estate in Switzerland. But does rent come back cheaper than owning your own home? For you, we compare these
two options in this article.
To buy a house ? It's worth it !
For our evaluations, we took as a reference an apartment in the canton of Vaud with 4 and a half rooms, with a total cost of 720.000,00 CHF.
If you decide to rent the same apartment, the monthly rent is around CHF 2000,00, for a total of CHF 24 per year. This means that, without taking into account inflation and long-term rent increases, in 000,00 years, we
would have given the owner of the apartment exactly CHF 720.
As a tenant, we would give up our claim to ownership and be forced to continue paying for a roof over our heads.
With 150 Swiss francs of equity, it is possible to become an owner in Switzerland, in the region of Lausanne or elsewhere in the canton of Vaud. To buy a property within our means, we will use a
credit institution for the remaining 570 Swiss francs. For this, it is necessary to apply for a mortgage loan from a bank.
Assuming a mortgage interest rate of 1,5%, the indicative monthly payment is approximately CHF 700,00. This represents a monthly saving of CHF 1 compared to the monthly rent of CHF 300,00. In 2 years, we will therefore have saved more than 000,00 Swiss francs.
In conclusion, if you choose a house and plan to live in it for 30 years, buying is certainly more practical and profitable than renting and also offers many other advantages from a social and economic point of view.
If you want to buy a property to renovate, other costs must be taken into account in addition to your initial budget. This article may interest you: “Buying a new house or to renovate?”
You increase your economic and social capital
By becoming the owner of an apartment, you increase your personal fortune through a good investment. It also reinforces your social status and presents you to others as a person inclined to take responsibility, to achieve his long-term plans and not to be afraid of investments.
You can also use your property as collateral for other investments. The fact that a bank trusted you to grant you a mortgage will only make the next procedures easier because you now have the credibility of a thoughtful person to manage their investments and budget.
If you own a house, you can use it as collateral to apply for additional loans, such as a car loan or another vacation home, and thus continue to realize your life plans.
You can resell the property and make a profit
As the owner of the property at the expiration of the real estate loan in Switzerland, you can absolutely decide to resell it and recover your initial investment (the equity), plus the surplus generated by the housing market during the years which have passed between your purchase and the sale. In general, real estate increases in value over the years.
When you retire, your expenses may be zero once the funding ends. So when you retire and your income may be lower than it is today, you won't have to worry about losing your home, because with your financing, your apartment will become your property over time. years and no one can take it away from you.
As you will have understood, before embarking on the purchase of a property, it is necessary to anticipate all possible costs and to ensure that you have your own funds and a good borrowing budget. Optimize your budget and calculate your purchasing potential with our simulator.
Do you see things more clearly and want to apply for a mortgage loan?
With the sending of only 3 documents, we carry out a free analysis and precisely determine your buyer profile.
Within 24 hours, you will receive a non-binding agreement in principle.
A mortgage loan is an important investment for your future and that of your family. INP Finanz Romandie makes it a point of honor to advise you in complete neutrality to choose the best partner for your mortgage loan.
Our goal : help you carry out the projects that are important to you.
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