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Average Property Appreciation / yr 3.00% 3.

00%
Period in years 8 8

Initial Property Cost in CHF #NAME? #NAME?


Downpayment in CHF #NAME? #NAME?

Value after appreciation #NAME? #NAME?


Total sunk costs #NAME? #NAME?
Accumlative amortization (i.e. mortgage repayment) #NAME? #NAME?
Percent ownership #NAME? #NAME?
Value owned after time period #NAME? #NAME?

Capitol Gains (i.e. Appreciation) #NAME? #NAME?


Property Gains Tax [%] #NAME? #NAME?
Capitol Gains Taxes #NAME? #NAME?

Value growth after taxes #NAME? #NAME?


Value after Sunk Cost in CHF #NAME? #NAME?
Per year return on downpayment investment #NAME? #NAME?

Control - Rent expenses


Rent -$1,823 -$1,823
Utilities -$268 -$268
Rent cost over total period -$200,726 -$200,726

Value add from property purchase #NAME? #NAME?


Per year return on downpayment investment #NAME? #NAME?
3.00% 3.00% 3.00%
8 8 8

#NAME? #NAME? #NAME?


#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?


#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?


#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?


#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

-$1,823 -$1,823 -$1,823


-$268 -$268 -$268
-$200,726 -$200,726 -$200,726

#NAME? #NAME? #NAME?


#NAME? #NAME? #NAME?
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Property cost 700,000 700,000
Downpayment % 80.00% 560,000
Mortgage 140,000
Mortgage interest rate [%] 1.10% 1.10%
Years to 33% Ownership 15 15
Years living in Property 3 3
Years of Property Ownership 10 10

Upfront Costs
Notary fee 0.40% 2,800
Property Transfer Tax Part 1 1.50% 10,500
Land Registration Fees 0.10% 700
Other upfront fees? 0 0

Monthly loan payments


Monthly interest 128
Monthly amortization -1,828
Monthy mortgage -1,699

Annual Costs
Annual Mortgage -20,393
Property tax 0.00% 0
Tax Changes with Property Purchase -4,000 -4,000
Management Fees 0 0
Maintenance Costs 7,000 7,000
Utilities 2,500 2,500
Building Insurance 500 500
Household Insurance 300 300
Annual Costs -14,093

Propery Appreciation
Appreciation per Year 0.50% 5.1%
Appreciation Property Gains 35,798
Final Property Value 735,798

Owned Capital
Accumulative Amortization -219,333
Percent Ownership 48.67%
Owned Property Capitol Gains 17,422
Value Owned 358,088

Expenses
Total Annual Costs and Upfront Costs -126,933
Property Transfer Tax Part 2 1.50% 10,500
Property Transfer Tax at Sale 1.50% 11,037
Property Gains Tax [%] 30 5,227
Real Estate Fees 2.00% 14,716
All Expenses -$85,454

Value 443,542
Net Investment -116,458
Return on Investment per Year -2.08%

Control - Rent expenses


Rent including fees and utilities. Per Mo, Year 3200 38,400
Rent rate increas per year [%] 0.0%
Rental Income or Savings 384,000
Total Property Management Fees 5.0% 13,440
Taxes on Rental Income 30.0% 76,608
Net Rental Income or Savings 293,952

Net Downpayment Investment with Rent Income / Savings 177,494


Return on Downpayment Investment with Rent Income per Year 3.17%

for comparison:
average US equity return: S&P 500 over last 70 years is 7% (inflation adjusted)
Return on Downpayment Investment Per Year

0.035 0.06
0.03
Downpayment ROI per year

0.05
0.025
0.04
0.02

0.015 0.03

0.01 0.02
0.005 0.01
0
0 5 10 15 20 25 0
0 2 4 6 8 10
Years Owned
Years Lived In
stment per Year

0.06
stment per Year

0.09

0.05 0.08
0.07
0.04 0.06
Return on Downpaymet Investment per Year
0.06

Return on Downpaymet Investment per Year


0.09

0.05 0.08
0.07
0.04 0.06
0.03 0.05
0.04
0.02
0.03
0.01 0.02
0.01
0
0 0
00 -0.08
-0.011 -0.01
Comparison Monthly Rent or Charged Rent App
Important factors not incroprated into this analysis: inflation, occupancy %, variation in parameter assumptions, risk po

Use a consitent currency throughout the spreadsheet


A minimum dowpayment of 20% is necessary for most mortgages

15 years of mortgage is the maximum allowed to reach 33% ownership by swiss law, this sets the amortization rate

This is a rough estimate, contact a local notary


Click here for a breadown of Property Transfer Taxes by Kanton
This is a rough estimate, contact a local notary

= Mortgage * Interest Rate / 12 months


= Initial Property Value* (33% - Downpayment %)/ Years to 33% Ownership / 12 Months
= Monthly interest + Monty Amortization

= Initial Property Value * Property tax rate


Interest Payments can be deducted from taxes, calculate your annual savings with a tax caclulator and enter that value here

It's common to set maintenance costs at 1% of property price


Many rentals include utility costs in their rent, for appropriate comparison add that additional costs here

=(1+Appreciation %)^(Years of Ownership)-1


= Initial Property Value * Appreciation
= Appreciation Gain + Initial Value

= Annual Ammortization * Years of Ownership


= Downpayment % + Accumulative Amortization / Initial Property Price
= Ownership % * Property Gains after Appreciation
= Ownership % * Final Property Value
= Sum of Annual Costs and Upfront Costs
= Initial Property Value * Propert Transfer Tax part 2 rate
= Final Property Value * Propert Transfer Tax at Sale
= Property Gains Tax % * Capitol Gains of Owned Property
= Property Value * Fee %

= Value Owned - All Expenses


= Net Value - Downpayment
= Investment Performance / Downpayment / Years

Annual Rent = Mo Rent * 12 Mo

Rental Income = Calculated Average Rent * Years of Ownership


= (Years Owned - Years Occupied) * Annual Rent * Management Fee Percent
= (Years Owned - Years Occupied) * Annual Rent * (1 - Management Fee Percent) * Tax Percent
= Rental Income or Savings - Fees - Taxes

= Net Rental Income / Savings + Net Investment


= Net Investment with Rental Gains / Downpayment / Years of Ownership

worthwhile perspective on a property ownership investment


Important research on the real returns and risks of home ownership
Return on Downpayment Investment per Year

0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
0 0.005 0.01 0.015 0.02 0.025 0.03 0.035 0.04 0.045
2 4 6 8 10 12 Mortgage Interest Rate
Years Lived In
stment per Year

0.09
0.08
0.07
0.06
Return on Downpaymet Investment per Year
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
-0.08
-0.01
Appreciation % Per Year
occupancy %, variation in parameter assumptions, risk potential of bad decision or unknown factors, and likely more

ship by swiss law, this sets the amortization rate

wnership / 12 Months

al savings with a tax caclulator and enter that value here

parison add that additional costs here


In Basel Stadt if you live in your purchased property for >6 years, this is 0% otherwise it's an additional 1.5%

Property Gains Tax varies by Kanton, for Basel Stadt click here for an explanation

Fee Percent
ment Fee Percent) * Tax Percent

(not inflation adjusted)

0.01 0.015 0.02 0.025 0.03 0.035 0.04 0.045


Mortgage Interest Rate
itional 1.5%