Why standard "Buy vs Rent" calculators fall short in Switzerland

Hi everyone,

When debating whether to buy property or continue renting in Switzerland, the math gets notoriously complicated. Standard online calculators usually fail to capture the nuances of the Swiss system, specifically how to accurately compare the opportunity cost of investing equity in the market (e.g., an ETF) versus tying it up in a property.

To bridge this gap, a dedicated iOS app called Buy vs Rent CH has recently been released.

Instead of a generic spreadsheet, it’s a native tool designed exclusively around Swiss tax and real estate laws. It handles the heavy lifting on the variables that actually dictate if a property is a good financial decision over time:

Eigenmietwert (Imputed Rental Value): Accurately models the impact on the marginal tax rate.

True Opportunity Cost: Compares the wealth accumulation of buying a home versus investing a down payment in the stock market.

Amortization Rules: Factors in the strict repayment schedules required for a 2nd mortgage.

Comprehensive Tax Deductions: Calculates the deductibility of mortgage interest and maintenance costs.

Realistic Running Costs: Goes beyond the mortgage to include realistic ancillary and upkeep expenses.

The goal of the app is to provide an interactive tool robust enough to handle complex variables, but accessible enough for anyone trying to make this massive financial decision.

If anyone is currently weighing a purchase, or just enjoys stress-testing financial models, the tool can be found by searching "Buy vs Rent CH" in the Apple App Store.

Any feedback, feature requests, or critiques from the Moneyland community on the underlying logic and calculations would be highly valued!

Nice idea, especially for Switzerland where there are quite a few things to consider.

Thanks samuel987la!

Exactly, between the interplay of marginal tax brackets, Eigenmietwert, and mandatory 2nd mortgage amortization rules within 15 years, generic calculators usually fall way short for Switzerland.

Out of curiosity, are there any specific edge cases or features you think are most critical when modeling this here?

For instance, I've been considering adding a feature to model the potential abolition of Eigenmietwert (since political discussions pop up on it regularly), or explicit modeling for splitting between SARON and long-term fixed-rate tranches.

Would love to hear what variables you or others on Moneyland prioritize most when running these numbers!

For the point "True Opportunity Cost": Do you use a nationwide average to calculate gains in property value? Or cantonal, municipal?