I have a question for you. I have a well diversified ETF portfolio and I have always been very careful to respect all conditions in order not to be considered a professional trader and to have to pay Swiss taxes on ETF capital gains.
Now I am considering an investment in real estate to further diversify my income streams. The idea is to buy an apartment with 60% mortgage and rent it.
I know that one of the conditions not to be considered a professional trader is avoiding leverage. Could this mortgage be considered “leverage” if I have in my ETFs more capital than what I took as mortgage as so I could technically have bought the apartment without loans from the bank? Of course without leverage the real estate investment would be much less attractive…
Thank you in advance!