How do I check my liquidity after purchasing my own home?

The liquidity check: analysis and strategy

To accurately assess your liquidity after purchasing a home , you need to clearly distinguish between assets and available cash. Your house is an asset, but you can't use it to pay at the supermarket. Analyzing your liquidity after homeownership requires a thorough examination of your income and expenditure structure.

Phase 1: Inventory of one-off costs

Immediately after moving in, your liquidity is most strained after purchasing a home . Often, these are costs that were not included in the purchase price. To check your liquidity after homeownership during this critical phase, you need to add up the following items:

• Authorities and fees: Have you considered property transfer taxes (depending on the canton), notary fees, and land registry fees? These are often only due weeks after the purchase and can severely impact your liquidity after acquiring a home .
• Furnishing and customization: New curtains, lamps, or garden equipment. Experience shows that owners spend approximately 10,000 to 20,000 Swiss francs on "small things" in the first 6 months.

If these expenses reduce your liquidity to zero after purchasing your home, action is needed.

Phase 2: Calculating ongoing housing costs

The key to liquidity after homeownership is the monthly cash flow. Many people miscalculate this because they only look at the mortgage interest.

• Interest payments: This is the rent for the money. With a SARON mortgage, this amount can fluctuate, which makes planning liquidity after homeownership more difficult.
• Amortization: Repaying the second mortgage is mandatory. Whether directly or indirectly (pillar 3a) – the money flows out. This represents a fixed burden on liquidity after homeownership , which is often underestimated.
• Additional costs: As a tenant, you pay an advance. As a homeowner, you receive bills for water, sewage, garbage collection, electricity, and insurance directly. For solid liquidity after purchasing your home, budget approximately 0.7% to 1% of the property value per year.

Phase 3: Reserve building as part of liquidity

Having healthy liquidity after purchasing your own home means not only that you can pay today's bills, but also tomorrow's.

• The renovation fund: Even with a single-family home, you need to build up reserves. A new roof or heating system can cost five-figure sums. Anyone who doesn't include these reserves in their calculations of liquidity after purchasing a home is only fooling themselves.
• The calculation: Virtually deduct money each month for renovations. Is your liquidity still positive after purchasing your home? If not, you're living off your savings.

Check the "iron reserve"

How much money really needs to be in the account? To classify liquidity after purchasing a home as "secure," the following rule of thumb applies:

After deducting all purchase costs, there should still be enough money left in the account to cover 3 to 6 months' expenses (not wages!).

• This protects your liquidity after purchasing a home in case of job loss or illness.
• If you don't have this buffer, your liquidity after homeownership will be in the red, even if you can afford the monthly payments. You are "highly illiquid".

Cash flow statement: Here's how to proceed

Create a simple Excel spreadsheet to visualize your liquidity after purchasing a home :

• Income: Net salary (plus any rental income from granny flats).
• Minus housing costs: interest + amortization + ancillary costs + reserves.
• Minus cost of living: food, transportation, health insurance, taxes.
• Result: Free liquidity after home purchase .

Is the result negative? Then your liquidity after purchasing your home is not sustainable. You must either reduce expenses or increase income.

Is the result positive? Congratulations. But beware: Excessive savings in the bank account are a form of wealth destruction during times of inflation. Optimal liquidity after purchasing a home also means reinvesting any surplus funds (after building up reserves) or using them for mortgage payments.

Warning signs of a lack of liquidity

How can you tell that your liquidity is at risk after purchasing a home ?

• your overdraft facility for the tax bill at the end of the year .
• You're postponing repairs (e.g., a leaky window) because you don't have the money.
• You reduce your contributions to Pillar 3a to pay the mortgage.

These are clear indicators that the liquidity after home purchase was not properly planned. In this case, often only budget counseling or debt restructuring (e.g., extending the amortization period, if possible) can help to reduce the monthly burden and improve liquidity after home purchase .

The impact of interest rates on liquidity

Liquidity after home ownership is extremely dependent on interest rates .

Do you have a fixed-rate mortgage? Then your liquidity after purchasing your own home is predictable.

Do you have a SARON mortgage? Then you need to factor in an interest buffer in your liquidity after purchasing your home .

• Stress test : What happens to your liquidity after purchasing a home if interest rates rise by 1.5%?
• If you cannot cover this increase from your current income, you must secure your liquidity after home purchase through higher savings.

Conclusion

The question "How do I check my liquidity after buying a home?" is vital for your financial well-being. Real estate is an illiquid asset. You can't "sell a brick" to pay for your weekly groceries. Maintaining solid liquidity after homeownership requires discipline and honesty in your budgeting.

Don't rely on the bank's affordability calculation – it's a theoretical value for a worst-case scenario, not a budget plan for your everyday life. Your personal liquidity after homeownership must ensure that you can cover unforeseen expenses without panicking. Check your liquidity status after homeownership at least once a year or whenever there are major life changes (children, job changes). Only those who maintain sufficient liquidity are truly free in their own home.

If you want to simulate how interest rate increases or renovations will affect your liquidity after homeownership , or if you are looking for a digital household budget specifically for homeowners, Loft offers precise analysis tools to make your cash flow transparent.

Glossary

• Liquidity after home purchase: The liquid funds remaining after the purchase, as well as the monthly surplus (cash flow) to cover ongoing costs and unforeseen expenses.
• Amortization: The regular repayment of the mortgage debt. It is a fixed outflow that directly reduces monthly liquidity after home ownership .
• Additional costs: Ongoing expenses for energy, water, insurance, and fees. These amount to approximately 1% of the property value and impact liquidity after home purchase .
• Renewal funds: Reserves for future renovations. "Freezing" these funds reduces short-term liquidity after home purchase , but ensures the preservation of value.
• Cash flow: The flow of money (income minus expenses). A positive cash flow is the basis for healthy liquidity after purchasing a home .