Table of Contents Hide
- Key Determinants for what to buy in Switzerland?
- What to buy in Switzerland: Various investment choices
- The Amount of money needed to initiate your investment in Switzerland
- Getting started on investing in Switzerland
- Guidelines for successful investment in Switzerland
For someone who has enough financial resources to spare for investment, their first thought should be about what to buy in Switzerland. This country has a rock-solid and stable economy, therefore investment here means more profits and less risk. With so many bright future investment options, you start pondering on what to buy in Switzerland. We have gathered all the information in this guide that will help you decide what to buy in Switzerland. Let’s have a look!
Key Determinants for what to buy in Switzerland?
Before you start counting your money to invest in Switzerland, or what to buy in Switzerland, there are many factors that you should consider such as your financial situation and the market state. But one of them that determines the success of your investment is the timing.
The perfect time to invest in Switzerland
You have to understand that knowing what to buy in Switzerland is not enough, you have to be sure that the time you choose for the investment is right and beneficial for you. When you put your money in stocks or other investment options, the profits will not be readily available to you. It may take years to gain some decent figure from that investment, so make sure you have enough money to spare for the investment.
You don’t want to be out of money for your everyday life just because you have decided to invest in something. Ensure that the amount you put aside for investment is not required for the next four to five years as you won’t be getting any profit out of your investment immediately.
So, if you think you can still pay your rentals and household payments after the investment, then it’s the right time for you to invest. If you’re even a little bit hesitant about sparing such a large amount at one time, maybe it’s not the perfect time for you to think about what to buy in Switzerland.
Age plays a role in your investment
People who have resources at a young age but think that it’s not the right age and time for them to invest are massively wrong. They should know that the sooner you start your investment, the better it is for them in the long run. Even if you have a small amount that you’re not using, it is advisable to invest that money in Switzerland, because over time the compound interest will keep adding to your overall profit. With time that interest amount increases and has a significant impact on your capital. You can start your investment at an early age to have money in your savings account for when you’re not able to earn yourself.
What to buy in Switzerland: Various investment choices
Once you have made up your mind to invest your money and know your ideal timing, the next step is to weigh the different investment options you can find in Switzerland. This country offers several options to decide what to buy in Switzerland.
Here is a list of the major investment choices you will get in Switzerland.
Investing in real estate in Switzerland is a good option if you have a strong investment strategy and huge capital because the property there is expensive. You must have at least 500k CHF to invest in a small property located in the supreme locations in Switzerland. Such an amount is not available at once to all those wanting to invest their money in Switzerland.
You can always live in the property that you invest in, and gain profit from the rents.
Even if the returns of the real estate are low, the property will be in your name.
Although the property rates are high for the initial investment, rates in general, do not change very frequently.
The returns for the real estate investments in Switzerland are extremely low.
Tax dealings in real estate investments are complicated due to property value and rentals.
Investing in property is expensive in Switzerland so you won’t be able to invest anywhere else in case there is a crisis.
If you’re thinking about what to buy in Switzerland since real estate is so expensive, bonds are a great investment vehicle that has low risk and more paybacks. By putting your money in bonds, you are offering your investment money to private businesses or governmental organizations. The government or the business then returns your money after a predetermined period with a percentage of interest agreed upon by both parties.
Investing your money in corporate or government bonds is a safe option as they pay back their debts.
The inconsistencies in the value of bond investments are low.
Bonds in Switzerland presently have lower returns.
The return period for bonds is long and the profits are not accessible for a long time.
Investing in stocks gives you a golden opportunity to be a part of a large organization’s revenues. Buying stocks means you get to become a smaller but important part of a company whose success would be shared with you.
With time your share in the stocks increases and you get more and more profit in the form of equities. But that doesn’t mean that you won’t face losses when the company fails, so choose wisely.
Highly beneficial for the long run as the share in stocks grows around 5-6% each year in Switzerland.
You can trade those stocks anytime and get money without complicated procedures.
You have a choice for picking which company stock you wish to buy and which one to sell.
The unpredictability of the change in stock value, which can cause loss.
Not suitable for short-term and smaller investments due to constant changes in the market value of stocks.
Putting your excess money in a savings account in Switzerland is not an investment in the true sense but it does help you when you’re about to retire. Many people opt this way to keep their money safe and thriving and it seems to be working for them pretty well.
There is no minimum time before you can get your money if you put it in a saving account.
You don’t lose money even in case the bank goes bankrupt or gets closed.
In Switzerland, the interest rate is really low for savings accounts so there are chances of losing more money than gaining.
The charges of the saving accounts in Switzerland are a lot and may have some hidden ones as well.
Gold and silver
For decades people who are confused about what to buy in Switzerland have been advised to invest in metals like silver and gold. Investing your money in valuable metals protects your assets from the consequences of inflation. In Switzerland, you will find multiple possibilities for buying gold and platinum metals online as well as in person.
Metals like silver and gold have an extended life and save your assets for a long time.
Investment in valuable metals is considered a physical investment and it’s better than something virtual or on paper.
The care, insurance, and safety of the metals have to be ensured.
There is no revolution in this kind of investment, all you can hope for is an increase in the market value of your metals.
When considering what to buy in Switzerland, you can not overlook the rising investments in cryptocurrencies like Ether, Litecoin, Libra, and Bitcoins. With time the interest of people in capitalizing their life savings in cryptocurrencies is growing. It is a risky but profitable investment if the market odds are in your favor.
The political or economic uncertainties do not affect the value of the cryptocurrency.
Unlike the traditional banking system, the transactions are quick, easy to handle, and more secure.
There is no guaranteed return for the cryptocurrency investment, except for the increase in value.
The value of cryptocurrency is often undefined and changing.
The Amount of money needed to initiate your investment in Switzerland
There is no fixed amount that you should have in hand to start your investment in this country. The amount depends mainly on your verdict about what to buy in Switzerland. You can start investing in something smaller like stocks or go as vast as buying property in central locations, it’s up to you.
The common misconception that you have to be extremely wealthy to invest is not true at all. However, according to experts, a minimum of 2000 CHF is the ideal amount for starting your investment in stocks. For property though, you have to be rich enough, because real estate is the most expensive investment option in Switzerland.
Getting started on investing in Switzerland
There are a couple of different ways to start your investment in Switzerland, for example, you can invest through a Swiss bank or the investment advisor companies. For most first-time investors, the suitable way is through a Swiss bank, where they work with your already existing account.
The Swiss bank employee that has been hired for you deals with your investment portfolio and informs you all about the pros and cons of various investment options. You can fully trust a bank to handle your money and resources but the drawback is the soaring fees that they charge for the services.
Guidelines for successful investment in Switzerland
No matter how old you are or how much capital you have for the outlay, you can make money through the right investment if you understand the basic rules for investing in Switzerland. To help you achieve success in your future investment we have listed some key guidelines.
Don’t put all your money in one investment
Not knowing what to buy in Switzerland, people often end up putting all of their money in one investment like property, or stocks. This approach is highly risky because if the investment goes wrong due to market uncertainties, you lose all of your money at once.
It is always better to invest money in distinct available options to expand your monetary investment. In this case, even if you lose money from one side, you still have other options available to secure your money.
Don’t stop investing your money
Once you start an investment, keep adding money to it regularly to keep it moving. Set up a schedule where a certain amount of money automatically goes to your investment at the start of each month, or a year respectively. This way your money is being doubled or tripled each month without you consciously planning each investment.
Be mindful of who you invest with
Many people lose substantial figures because of being unaware of some hidden charges of the bank or the company they invest in. This not only results in mistrust between the parties but also decreases the actual worth of your assets at the end of each investment.
Choose the best investment strategy
You have to get out of the mindset of what to buy in Switzerland and start focusing on what is the best strategy to invest in anything. From real estate to investment funds, all can be a source for your success if you know the right strategy for your investment portfolio. You can get help from investment advisors as well as a Swiss bank to understand the ideal investment option along with its strategies.
Reinvest your return capital
When you invest in stocks, property, investment funds, or ETFs, you get a yearly return of up to 5% or 10% depending on the type of investment. Each year, you get the choice of whether to keep the money from the return rate in your pocket or reinvest it in your investment. We suggest that you reinvest that money instead of spending it. By doing so, you will benefit greatly from the bigger profit ratios in the future.
Hire a lawyer
Getting advice from your lawyer is crucial to keep a better outlook on your monetary resources. Having a lawyer protects you from getting scammed or meeting losses at the hands of other parties.