Investment and portfolio

Check the yield, free up capital

A property in a portfolio earns its place with the yield after all costs. If that no longer fits your goals, a sale can free up capital for something new.

Count net, not gross

The gross yield only relates rental income to the price. For your decision the net yield counts: after maintenance, management, vacancies, insurance and interest. Calculate with today’s market value, not the original purchase price.

Price in upcoming renovations

Roof, heating, façade and pipes have a lifespan. If a major renovation is due, the question is whether to invest or to sell. Buyers factor open work into their price.

Taxes and costs on a sale

The gain is subject to property gains tax. If the property is a business asset, some cantons tax the gain through income or profit tax instead. A long holding period lowers it in most cantons. Notary, land register and, depending on the canton, a transfer tax come on top.

Put the capital to new use

The proceeds can pay down debt, finance a new property or be invested differently. Ask your bank early whether and how you can repay a fixed-rate mortgage early and what it costs.

How Kantello helps

List your property with its rental income and key figures. The fixed price does not depend on the sale price.

List a property Pricing Free valuation

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Common questions

What is the difference between gross and net yield?

The gross yield relates the annual rental income to the price. The net yield first deducts the running costs, such as maintenance, management and vacancies. For a comparison with other investments, the net yield says more.

Is it worth splitting an apartment building into condominiums?

Sometimes. Single flats often fetch more together than the whole building, but the split costs time, notary and land register fees. Existing leases pass over. Have the effort checked first.

What does it cost to end a fixed-rate mortgage early?

The bank usually charges an early repayment penalty for the lost interest. Its amount depends on the remaining term and the difference in rates. Some banks let you transfer the mortgage to a new property.

Guides

Other situations

General information, not legal or tax advice. For your own case, ask the tax office, the notary or a specialist.