Rent or Buy?
Living the way you want
Living the way you want

The Swiss market is made up of 3.12 million households, which includes apartments and houses. Only one third of the population owns their houses, which is the lowest rate of ownership in Europe. Switzerland is a nation of tenants. (Source: Federal Office of Statistics)

Renting
 
Advantages

  • There is limited responsibility. You are only partly responsible for the upkeep of the apartment or house, if it is required at all.
  • There is no scope for major investments. You can leave the funding of major renovations or conversion work, as well as the insurance of the building to the owner of the house or the management company.
  • There is no fear of reduction in the value of your investment. The value of a property can suddenly drop due to construction of roads or flight paths. As a tenant, you are immune to this.
  • You can calculate your costs.
  • You do not run the risk of incurring debts.
  • Overall there is a smaller amount of risk.

What you should consider

What one has to take into consideration when renting is the incidence of hidden costs:
  • Tenant's deposit amount, which is usually 1 to 3 months rent taken in advance as security money and/or participation certificates in the case of housing associations.
  • Heating costs
  • Home-contents insurance
  • Most landlords require a credit check which costs money.
  • The rent is not tax-deductible.
  • Dependence on the home owner or management company: The landlord can always give you notice to leave the apartment or house.

Buying

Advantages

  • You have your own home and land, are free to do whatever you want with them up to a certain degree and can have a say in its architecture and interior design.
  • You are making an investment that may gain in value.
  • You are not affected by increased rent. The average rent has gone up by more than three times since 1970 and peaked in the early 1990s. The price of development has remained constant since then and mortgage interest rates are always comparatively low.
  • You can also receive tax relief on your mortgage.

What you should consider

  • The potential rental value is also taxable.
  • Responsibility for the property rests with you and you have to decide what maintenance is necessary and important for the property.
  • You bear all the costs yourself whether it is for insurance, minor projects or major conversions. In addition, when you take out a mortgage you will be embarking on a long-term financial commitment.
  • The value of your house or apartment may fall.
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