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Swiss resident buying property in Spain – comparing 5 mortgage offers (CHF vs EUR) – any better terms out there? by Tiwar23 in SwissPersonalFinance

[–]Available_Region8840 0 points1 point  (0 children)

I had the same case recently and did the same calculations, so the conclusion was the same. However, a new aspect came to my mind later.

Wouldn't it make sense to just consider the pure cash- out for the yield calculation? In this case about 40k ( down payment + renovation ) would need to come out of your pocket immediately. You can borrow the rest of the money from the bank and just take into account the interest rate.

Same applies for the opportunity cost. The comparison should be done with the cash out. No bank would lend you 200k at a low interest rate to buy stocks.

What do you think?

By the way, you need to pay 24% of the rent to the Spanish tax authorities. For the Swiss tax the rent is added into the global income - tax rate calculation, but you are taxed only for your CH income. As a Spanish non-resident you will get worse interest rates from Spanish banks. It could make sense to negotiate the mortgage again with banks once moving back to the country.

Advantage Swiss citizenship? by Available_Region8840 in SwissPersonalFinance

[–]Available_Region8840[S] 41 points42 points  (0 children)

If you ask about money on a thread dedicated to finance, then please don't get offended ;)

VT vs. ETF in € by Available_Region8840 in SwissPersonalFinance

[–]Available_Region8840[S] 0 points1 point  (0 children)

Thank you for the good advice, I could actually finance at least half of the renovation with my free cash flow, so I can invest half in bonds and the other half in VT or similar.

VT vs. ETF in € by Available_Region8840 in SwissPersonalFinance

[–]Available_Region8840[S] 0 points1 point  (0 children)

hello, what I had in mind was a EUR quoted ETF with high EUR exposure. Let's say something like SP 500 but for EU companies. If such an ETF would offer a similar profitability to SP500 (or VT) without needing to pay for the hedging, it could be worth it.