This is it, I finally found a new investment in real estate in Switzerland!
If you are subscribed to my newsletter (see bottom of each article), you know that a few months ago I was looking for a new investment opportunity in Swiss real estate. I say new, because I had just finished a Swiss real estate investment that had given me a 55% annual return.
So I followed my rule that works every time to find new investment opportunities: talk about the fact that I am looking for an investment opportunity. Every day, to at least one new person.
After a few weeks of patience, a reader contacted me to propose an investment with a guaranteed 7% return, in Switzerland.
Concretely, her proposal was:
- I lend her CHF 70'000 directly via a peer-to-peer private loan
- She uses this money to buy a real estate property
- I commit myself for a minimum contractual period of one year, tacitly renewable from year to year
- I can leave the contract and take back my initial CHF 70'000 at the end of each year, with a 3 months notice
- I receive a 7% return per year (i.e. CHF 4'900), paid semi-annually (i.e. CHF 2'450 each semester)
Having just come off a similar 55% investment, I was fairly hesitant to wait until I found something better.
How to find a real estate investment in Switzerland?
Talk about it to a new person every day!
Except that two points entered the equation in parallel.
Uno: I didn't have any other more interesting opportunities, besides the stock market. The latter being much more diversified (8'000 companies vs. one person), and offering fairly decent returns over the long term... but nothing guaranteed.
Secondly, I had just taken the time to understand a financial concept that I had always left aside until now. A concept that allowed me to invest money without blocking mine...
The second point intrigued me enough that I wanted to play it ala "skin in the game". But I'm not crazy either, so I wanted something guaranteed to test the waters. We agree that the risk/return ratio with a peer-to-peer loan is great. But as usual, I did my due diligence by tracing this person's life, then meeting her together with Mrs. MP and her critical thinking skills.
Result: at the end of August, we signed a loan contract with a guaranteed 7% return for a real estate investment in Switzerland. And this, with money that is not ours, technically speaking (I will save the explanation of this financial mechanism for the next article).
Moreover, we met a very nice new person, with whom I hope to test other business opportunities in the future.
I'll update you next year on this investment, and we'll see if I'm getting my interest, or if I'm in a legal procedure to get my CHF 70'000 back. YOLO as the kids say!
And you, have you found any interesting opportunities in real estate in Switzerland lately? With what annual return?
PS: I'm still looking for an investment with a 15%+ minimum return for 2022, other than the stock market. If you have an opportunity to propose, you can write to me at the email address I use to send you my newsletter.