Real estate investment analysis software should help answer a practical question: does a property work at a realistic price, rent and financing cost? It should make assumptions visible, allow scenarios to be compared and connect the analysis with evidence. It cannot replace legal, technical, tax or financing due diligence.

Start with the decision

Define the decision before choosing a tool. Are you screening an opportunity, comparing two apartments, testing a renovation, or deciding how much equity to commit? Each question requires different inputs. A good model should show not only the result, but which assumptions drive it.

What the model should include

Total acquisition cost

Include the purchase price, notary and land-registry costs, transfer charges where applicable, financing fees, brokerage, immediate repairs and initial letting costs. A CHF 700,000 apartment that needs CHF 50,000 of work is not a CHF 700,000 investment.

Income and operating costs

Use achievable rent rather than the most optimistic listing. Include vacancy, collection risk, owner-paid charges, insurance, administration, maintenance and reserves. Separate recurring expenses from capital works so the result is understandable.

Financing and returns

Compare equity, mortgage amount, interest, amortisation and refinancing assumptions. Review gross yield, net yield, cash flow and, where useful, cash-on-cash return or IRR. These metrics answer different questions and none guarantees performance.

Illustrative comparison

Apartment A costs CHF 700,000, produces CHF 30,000 annual rent and needs CHF 50,000 of immediate work. Apartment B costs CHF 760,000, produces CHF 32,000 and needs CHF 10,000 of work. A price-to-rent comparison may favour A. Including acquisition costs, reserves, vacancy and financing may make B the more resilient case.

How to test software

  • Can assumptions be edited and explained?
  • Can base, downside and financing scenarios be compared?
  • Are source documents linked to figures?
  • Can actual ownership results later be compared with the original model?
  • Can data be exported and reviewed by an adviser?

Swiss considerations

Costs, taxes, financing practices and rental conditions vary by canton, municipality, lender and property type. Avoid opaque scores and verify local inputs.

How Valory can help

Valory Deals helps buyers compare purchase costs, financing, returns and risks before deciding whether—and under which conditions—to buy. Valory Properties then helps organise documents, expenses, mortgages and projects so actual performance can be reviewed against the original decision.

This content is provided for general informational purposes and does not constitute legal, tax, financial or investment advice. Rules and outcomes may vary depending on the property, jurisdiction and individual situation.