I will not raise the topic again about rental guarantee insurance vs deposit, I refuse to pay 4%+ for interest for my rental guarantee, but on the other side, having it blocked at 0.1% (the best I can find, CLER bank) is kind of stupid. Our next move will more than double the guarantee required (the rent didn’t double, just where we are they asked for less than 2 months warranty) and it will block even more cash (not even counting the transition until the previous guarantee is free up).
I cannot understand why they require so much money, the flat is old and only expensive because of the location, not the value of the equipment/building. And in any case, if we damage for more than guarantee, we will still have to pay for it anyway, so I don’t get how it’s still a thing.
Isn’t there a solution to put equities (ETF) or bitcoin as guarantee, so it continues to gain values in the meantime? I would be ok to put 50% more in this case, as I want to invest some money anyway. If there isn’t such solution, why not? Swissquote or any other bank could offer that and get more customer investing and paying the usual fees for investing, they just have to ask for the landlord approval to close an account like a normal banking rental guarantee account.
Would be interested to know if anything like that was already discussed and what do you think about it.
EDIT: it turns our it exists already, thanks @Guillaume_GVA
The guarantee is also there to cover scenarii where you fail to pay rent for some time.
A 3 months guarantee is standard. If that’s what they’re asking for, I wouldn’t fight it too extensively or try to mitigate it and I’d just consider it the cost of renting that specific place. I may reconsider depending on other factors (mainly availability of competing items) if they are asking for more than that.
I have no knowledge of an investing product for rental guarantees. As nabalzbhf puts it, it sounds counter productive to the purpose of the deposit. In order for it to work, like it does for mortgages, you’d either need the bank to be the counterparty or for it to issue a fixed guarantee to the landlord, while allowing you to invest the difference. That guarantee would be costly so I don’t know that it would fit your criteria as to how much you are willing to pay to still have your money invested.
Extract of the law on rental deposit (art. 257e) - Fedlex
Up to 3 months of rent as deposit. I’ve never seen a landowner asks for less. However, the 3 months are a maximum. Perhaps you have the option of negotiating a lower deposit (unlikely to happen).
The full paid-in deposit of up to 3 months rent is guaranteed by Evorest, even in a market downturn. If the markets are performing well, the deposit coverage is even higher than what was paid in
As usual, the marketing speech is prominent and it’s not that easy to find the actual legal conditions that apply (I haven’t but haven’t searched for long). I’d be interested to read them.
Great! Thanks for finding it, I knew it would be a good idea, proof, someone did it before me I search for half an hour, on Moneyland and Comparis and even direct internet search but didn’t found it (price to pay for not using Google maybe).
0.6% fee for 75% invested, not so bad, better than sitting at 0.1% or paying 4% a year for nothing.
I have anyway ETF on a free Investart account that I was looking to close as I have already a regular IB account (and Investart just manage a separate IB account for you). So If I sell these ETF and buy more or less the same with Evorest, it will not be a huge risk on my side. Even when I change flat or if I don’t need a deposit anymore (like buying a house in the future) I can always buy in or out of IB with same or very similar position, so long term I don’t have much risk of bad market timing.
I’m not sure what you mean, but usually I try to avoid complex investment scheme, I stuck to global ETF or Bitcoin, no leverage. I did try some collateral with crypto to get cash and it didn’t turn well, was liquidate during a flash crash of less than 1h, could never buy back at the liquidation price or below, so I’m not willing to try again unless I find a product with non-liquidation guarantee or something (like you have x hours/days to see if it recovers or to reinject the difference if needed).
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I search for half an hour, on Moneyland and Comparis and even direct internet search but didn’t found it (price to pay for not using Google maybe).