Real estate is an attractive investment product. Many people use rental income as a means of securing their standard of living in retirement.
Whether you already own an investment property or you wish to buy or build one – we are a capable partner when it comes to analysis and financing.
Find out whether an investment property fits in with your financial plan:
- Analyze the opportunities and challenges: How does the income compare with the costs?
- Consider the financing principles: How does financing an investment property differ from financing a residential property?
- Consider the tax implications of owning an investment property: What kind of impact does ownership of an investment property have on your income tax?
- Plan your investment: Which information and analyses are of central importance for sound investment planning?
1. Analyze the opportunities and challenges
Before you decide to purchase an investment property, you need to carefully weigh up the opportunities and challenges.
- Real estate can constitute a solid building block for your portfolio:
- Regular rental income
- Diversification of your assets
- Potential hedge against inflation
- Possible rise in the property's value
Take account of the expenses and other factors which come with ownership of an investment property:
- Administrative expenses
- Cost of maintenance and renovation
- Risk attached to vacant property
- Saleability and resale value of the property
2. Consider the financing principles
Some of the requirements which govern the financing of investment properties differ to those which apply to owner-occupied homes.
- Up to 80% of the property's value can be financed using borrowed capital.
- Capital from your private and company pension schemes cannot be put down as equity.
- The annual rate of amortization is at least 1% of the total mortgage
We provide you with a personal consultation so that together we can assess the affordability of a multi-family house.
Breakdown of the components which comprise residential property financing
3. Consider the tax implications
Ownership of an investment property can have an impact on your income and your financial circumstances.
The tax authorities add the rental income generated by the investment property to your taxable income. Your rental income is taxable in the canton in which your investment property is located.
Mortgage interest and maintenance costs are deductible from income tax.
Impact of an investment property on your income tax.
4. Plan your investment
Plan your property investment carefully. We are there to help you with your venture and will provide you with expert information, analyses and calculations. Our services include:
- A comprehensive understanding of your needs and objectives
- An analysis and discussion of your risk profile
- The analysis and structuring of your assets
- The development of an investment strategy which takes into account your property investments
- The calculation of the return on the property and of the change in your taxable income
- An estimate of the property's renovation requirements
- An analysis of the financial implications of a vacant property
- The latest market data and detailed information on the municipality in which your property is located
We provide you with one-to-one support from a single source. Contact us today.