Your home – is it better to rent or buy?

For whom would switching from renting to owning be worthwhile?

Are you considering buying your own home? If so, it's not just financial factors that play a role, but also fundamental considerations of your personal values and plans, as well as your current and desired lifestyle.

Are you a future homeowner?

Main focus of life
If you want to make Switzerland the centre of your professional and private life over the next few years, you should consider owning your own home. This includes questions such as: How secure is your job situation? Are you planning a stay abroad? What about starting a family?

Financial feasibility
Consider the long-term feasibility of residential property: Can you afford your dream home with your household income and equity? Are you planning any major expenses for retraining and further education, longer trips or a sabbatical?

Mobility
There are professional and private reasons that influence the mobility of your living situation. If you can imagine living in the same place for the next few years, you meet an important criterion for home ownership. On the other hand, if you need to be more mobile and want to be flexible about where you live, you are not yet ready for your own home.

Age-appropriate housing
Owning your own home means security and long-term living – even after retirement. That's why you should start thinking about how you want to live when you get older. What would suit you better: an apartment in a retirement home or your own home with a garden?

Advantages of home ownership

If you decide to buy your own home, you reduce your housing costs and can design the house as you wish. Here are all the advantages of buying a home:

A home as retirement provision
By purchasing a property and paying off the mortgage until you reach retirement age, you are preparing for your retirement as this will reduce your living costs in old age.

Investment property with right of use
Financing your own home can also be seen as an investment. However, unlike equities or bonds, this investment can be used for residential purposes.

Inflation security with a long-term fixed mortgage rate
The mortgage interest rate remains fixed regardless of economic performance. This provides security when planning and structuring your budget.

Freedom in designing your "own four walls"
Unlike renting, you can design the interior of your home however you wish – without having to dismantle anything when you move out. Neither are there any regulations regarding pets.

Lower living costs
If you finance your home with your own funds and a mortgage, the monthly costs can be considerably lower than renting.

Tax advantages
All value-preserving maintenance costs for your home and the interest costs on the mortgage are tax-deductible. (Sample calculation)

No risk of termination
If you own your own home, no landlord can terminate the rental contract. Landlords are generally permitted to give notice of termination if they require the property for their own use, if house rules are disregarded, the duty of care and consideration is breached, or the rent is in arrears despite a deadline having been set.

Advantages of renting

Faster and more flexible change of residence
If you would like to change your place of residence for work or private reasons, this is relatively easy. Depending on the rental contract, you can terminate the contract within three months – thus ending your rental obligations.

Fewer obligations
Tenants have a duty to take care of their rental property, while owners must ensure that their property poses no danger and no one is harmed, among other things. The expense for tenants is thus much lower.

No renovation costs
Homeowners must finance the maintenance and renovation of their property themselves. The annual maintenance and ancillary costs amount to approximately 1%, and for older properties up to 2.5%. If you rent your home, the landlord will take care of and pay for all renovations.

No capital commitment
As a tenant you don't need to have any major equity or take out a mortgage, so you can use your assets for other purposes.

No imputed rental value
Homeowners are subject to tax on the imputed rental value, i.e. the value that the property would have if it were let out. This is not the case with tenants.