E.g if you have a mortgage of 1M CHF, then the rental income should be at least 50’000 CHF/year
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Are we talking about general situation?
I don’t really know any apartment in Zurich city which would be 1 million mortgage and 50K rent.
You mean most places that yield 50k cost more than 1M? I guess it’s a matter of having a smaller mortgage and more equity then.
It’s afaik how the bank is calculating, for rental properties you’d only get up to 65% of the property price, that’s your mortgage and the rental income needs to cover that at 5% interest.
Yes. I was under impression that assumption here is that mortgage is 80% of asset value at time of purchase which means 1 million mortgage translating to 1.25 Million asset price
Gross yields in Zurich city are below 3% for sure. In most cases they are like 2%
It’s normally 75% (but a few banks offer 80).
No assumption on the mortgage percentage, but yes it’s probably hard to get 5% from a 1.25M property.