Swiss Real Estate Funds and Property Shares: A Way to Invest Without Buying a Home
How real estate funds work, what drives their price and how they are taxed.
5 min read · Savings & Investing
You can invest in property through funds and listed companies instead of buying a building.
The options
- Real estate funds that hold residential and commercial buildings.
- Listed property companies.
- Foundations for investment groups, mostly for pension funds.
Example with default values. Open the calculator →
What to watch
Prices of listed funds can trade above or below the value of the buildings, called a premium or discount. Rising rates tend to reduce prices.
Taxes
Risks
- Interest rate risk: higher rates reduce prices.
- Concentration in one market or region.
- Premiums that can shrink when sentiment changes.
Distributions from rental income can be taxable, while some funds with direct holdings have special rules. Compare the net yield with the dividend yield calculator.