Switzerland: How buying real-estate can kill you financially/reasons for stocks
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Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#2Buy a small place enough to live. If you take a mortgage pay it as soon as possible to be debt-free. Then invest in diverse things with best return while being tax smart. Perhaps barbell method.
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#3Houses are bad investments due to foreign millionaires inflating real-estate for the rest of us.
Is it really foreign millionaires or is it local billionaires - namely the banks throwing money with ridiculously low interest rates at everyone - who inflate the house prices?
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#4Buy a small place enough to live. If you take a mortgage pay it as soon as possible to be debt-free. Then invest in diverse things with best return while being tax smart. Perhaps barbell method.
My understanding is that's not a wise Swiss-property investment strategy (the subject of this article after all...). There, the combination of no capital gain taxes, a tax on wealth, very-low-and-stable interest rates means that one should take an interest-only-mortgage and invest what would have otherwise been your principal payments...
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#5rich people problems
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#6Buy a small place enough to live. If you take a mortgage pay it as soon as possible to be debt-free. Then invest in diverse things with best return while being tax smart. Perhaps barbell method.
My understanding is that's not a wise Swiss-property investment strategy (the subject of this article after all...). There, the combination of no capital gain taxes, a tax on wealth, very-low-and-stable interest rates means that one should take an interest-only-mortgage and invest what would have otherwise been your principal payments...
Tax on wealth is really low unless you have millions.
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#7I would suspect a few of these wealthy foreigners buying property are trying to make sure there wealth is tied up in something their home state cannot take away ownership of. If it depreciates a bit, it's probably fine. 97% of something is better than nothing. I also suspect they have nice stock portfolios already as well.
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#8Buy a small place enough to live. If you take a mortgage pay it as soon as possible to be debt-free. Then invest in diverse things with best return while being tax smart. Perhaps barbell method.
Switzerland makes home owners pay taxes as if they rented the house out for 12 months each year. This could add a nice chunk to your net cost of owning.
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#9I would suspect a few of these wealthy foreigners buying property are trying to make sure there wealth is tied up in something their home state cannot take away ownership of. If it depreciates a bit, it's probably fine. 97% of something is better than nothing. I also suspect they have nice stock portfolios already as well.
Makes sense
A lot of Chinese nationals are buying property in the states and Canada in order to accomplish the same thing
I wonder how this kind of cash parking affects property values?
Re: Switzerland: How buying real-estate can kill you financially/reasons for stocks
#10I would suspect a few of these wealthy foreigners buying property are trying to make sure there wealth is tied up in something their home state cannot take away ownership of. If it depreciates a bit, it's probably fine. 97% of something is better than nothing. I also suspect they have nice stock portfolios already as well.
OP here: I heard from people working in hotels that some expensive ones loose millions each year but wealthy people from Arab countries who own them don't care.