Rent or Buy?
Compare your wealth after 10, 20 or 30 years. With Swiss mortgage, property appreciation, investment return on equity – and break-even point.
Renting
Buying
📊 Comparison parameters
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Wealth development over time
Note: Model calculation with constant assumptions. In reality, property prices, mortgage rates and stock markets fluctuate. Not included: transfer tax (1–3 % per canton on purchase), notary and land registry fees, agent fees on resale, major renovations, tax effects (imputed rental value, mortgage interest deduction – both changing in 2027). Quality of life, flexibility and security cannot be measured in francs. Not financial advice.
Frequently asked questions about renting vs. buying
When does buying make financial sense?
If you stay for a long time (at least 8–10 years), mortgage rates are low and you have enough equity, buying typically beats renting after 10–20 years. Shorter than 5 years rarely pays off – transfer tax, notary fees and agent commissions on resale eat up the advantages. Rule of thumb: the longer the horizon, the better for ownership.
What about the imputed rental value?
Currently, homeowners must declare a notional rental value as income but may deduct mortgage interest and maintenance costs. Following a 2025 referendum, the imputed rental value will be abolished in 2027, and in exchange the mortgage interest deduction will no longer apply. For most owner-occupiers, slightly cheaper – except with very high mortgage rates and a low imputed rental value.
What property appreciation is realistic?
Long-term in Switzerland: around 1.5–2.5 % per year on average – with large regional differences. Zurich, Geneva, Zug, Basel: significantly more. Rural areas: sometimes zero or negative. Comparison: a broadly diversified equity portfolio has historically returned 5–7 % per year, but is more volatile.
Why use investment return as a comparison?
Buyers tie up equity in the property. Renters could invest that money instead (ETF, pillar 3a, securities). The investment return is the opportunity cost comparison: what the equity would earn elsewhere. Conservative: 3–4 % (mixed portfolio). Equity-heavy: 5–7 %. Savings account: 0.5–1 %.
What hidden costs are there when buying?
On purchase: transfer tax (0–3 % per canton), notary and land registry (~0.5 %), possibly valuation. While living there: renovations every 15–25 years (bathroom, kitchen, heating – quickly CHF 50–100k), strata management for condominiums, higher insurance. On sale: agent (2–3 %), capital gains tax. The 1 % maintenance rule covers it on average, but plan for it.
What is not included in the calculator?
Quality of life (own home vs. flexibility), tax effects (imputed rental value / mortgage interest deduction, varying by canton), renovations, transfer tax and selling costs. The model is a financial first estimate – for the final decision: include personal life circumstances, mobility, risk tolerance and professional advice.
Plan with your real numbers
Geldfuchs sees your income, savings rate, pillar 3a and pension fund – and shows you what truly fits your financial situation: renting or buying.
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