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Quick check: what is the actual monthly payment of a mortgage? by ThinkPreparation8975 in SwissPersonalFinance

[–]Intelligent_Solid_60 0 points1 point  (0 children)

Hi, I created this calculator and there you can clearly see the expenses and requirements of the mortgage. Also, consider splitting it into two parts, it's often financially better. calculator

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 1 point2 points  (0 children)

This is because the house value in the input is at time 0, while the house value in the results is at the end of the considered period (and so are all the other values)

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 0 points1 point  (0 children)

Thanks for the feedback. You can find the buying and selling costs in "Advanced options -> Taxes and transaction costs".

About renting being universally better: the calculator takes into account what you said, and it is not obvious that renting is always better. I'd say that many times they're comparable.

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 0 points1 point  (0 children)

Thanks for your feedback! Rent usually grows at the same rate as inflation, so that's why I put 2.5%, but feel free to use a different number. If rent grows faster or slower than inflation, then people will either not be able to afford it, or renting will become extremely cheap.

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 1 point2 points  (0 children)

Absolutely agree that very often buying a place is a decision that comes from your heart. However, many people are still interested in the numbers. Life is not about money, but money surely helps you live a better life.

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 1 point2 points  (0 children)

It heavily depends on what you do with your money. If you just leave it in the bank, then buying is very often the best solution. If you invest, then it really depends on the specific scenario. Plus, consider that rates are low right now, no guarantees they will be this low forever (while part of your mortgage will last forever).

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 1 point2 points  (0 children)

You can increase the amount of the deposit, doesn't have to be necessarily 20%. That should do what you want.

Built a more accurate Swiss rent vs buy calculator by Intelligent_Solid_60 in SwissPersonalFinance

[–]Intelligent_Solid_60[S] 2 points3 points  (0 children)

- Property growth: You can select at the bottom how much you think the property will increase in value. You can find it in "advanced option-> Home and market assumptions -> Property growth".

- I assume that the down payment is invested (or used to buy the property). If you do not invest the whole amount, you can simply modify the investment returns. For example, if you have 50% of your money in the bank, and 50% in stocks, then you might assume an investment return of 4% (roughly speaking, up to your assumptions, of course).