The question “to rent or buy?” is a life decision. Both make sense and have their appeal, especially with regard to a self-determined life. If you take a closer look at the advantages and disadvantages, both options offer real benefits. Find out what these are in our video.
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Advantages of renting
1. Greater mobility
Whether you want to relocate because of a new job or a new love – you can do it quickly, as finding a new tenant is usually not a problem.
2. Flexible adaptation to changed life circumstances
Are children on the horizon or do you have a new hobby requiring more space at home? Moving to a larger apartment can be done quickly and easily.
3. Financial flexibility
Changes in salary due to promotion or part-time work? Tenants can react quickly and adjust rent to their current income.
4. Renovations and maintenance
High renovation costs for the property are at the expense of the landlord. Your own wallet is spared.
5. Economic and financial developments
Interest rate trends, price hikes or real estate bubbles? These issues affect tenants much less than they do owners.
Advantages of buying
1. Security
In your own home, you're the boss. No one can give you notice.
2. Low interest rates
Buying a property is much cheaper than renting it in the long term. This is one of the main reasons for the increase in home ownership in Switzerland from 28.5% in 1970 to 36.4% in 2019. (Source: Swiss Federal Statistical Office, 2021)
3. Retirement provision
Seniors who live in their own property need not fear rent increases and thus have one less thing to worry about.
4. Capital appreciation
Real estate is a solid investment that also offers the possibility of capital appreciation – provided the location is right.
5. Planning a self-determined life
Your own fireplace, a pool in the garden or a pet? Owning your own home gives you the personal freedom to shape your life in self-determination according to your wishes.
A good feeling is essential when buying, as is good planning
The decision to own a home is primarily emotional. To make your dream home realistic and sustainable, the facts should also be carefully and securely clarified.
Golden rules:
- Start planning early
- Be realistic about what you want and consider alternatives
- Draw up a financial plan, including at least 20% equity for the purchase
- Establish a savings plan to accumulate equity
- Compare mortgages and look into affordability in detail
- Calculate running costs, these affect affordability
Do you dream of owning your own home?
We can assist you with the financing planning and would be pleased to show you ways of making your dream of home ownership come true. Arrange a non-binding consultation with a Swiss Life advisor today.
Image source: Unsplash, Elisa Kennemer
