Buying a home in three years: separate the deposit from long-term investing
A fixed purchase date changes the acceptable risk: money needed for the deposit should not depend on a market recovery arriving on time.
Give every franc a time horizon
Investment risk is not defined only by personality. It also depends on when the money must be available and what happens if its value falls. A household planning a property purchase in three years has a liability with a date: deposit, transaction costs, moving and an emergency reserve. Equities may offer long-term growth but can lose substantial value during a short window, and recovery has no schedule. The deposit bucket therefore usually needs higher liquidity and lower volatility than retirement assets. Separating purposes prevents a strong long-term portfolio from being forced to sell at an unlucky moment.
Estimate the full cash need
Start with a realistic purchase range and ask lenders what own funds, pension use and affordability tests would apply, without treating pre-approval as a promise. Add notary, transfer, valuation, renovation and moving costs relevant to the canton and property. Keep a reserve after completion; using every liquid franc for the deposit can make the first boiler or job change a crisis. Subtract reliable savings contributions over the remaining months. The amount still required becomes the protected target. Cash accounts, term deposits or high-quality short-duration instruments each have different access, return and price risks and should be held with regulated providers.
A hypothetical bucket plan
Maya and Julien hold CHF 120,000, hope to buy in thirty-six months and estimate that CHF 95,000 must be reliably available, including costs and reserve. They place that target in a ladder of cash and short maturities aligned with likely payment dates. The remaining CHF 25,000 stays in a diversified long-term portfolio because they can postpone using it for housing. Each month, new savings first close any gap in the protected bucket. If property prices or lending requirements rise, they lower the purchase budget rather than quietly increasing market risk. Figures are illustrative and do not recommend a product or guarantee capital.
The opportunity-cost tradeoff is real
Holding cash may lose purchasing power after inflation and can feel frustrating during a stock rally. Investing the deposit may produce a higher result, but the downside can force a delayed purchase, smaller home or costly borrowing. A term deposit can improve yield while reducing access before maturity. Foreign-currency assets introduce exchange risk if the property will be paid in francs. Using pension assets can increase the available deposit but reduce retirement provision and has tax, pledge and repayment consequences. The right mix is the one whose downside the household can actually accept on the purchase date.
Use decision dates, not daily market reactions
Set quarterly checkpoints for target property price, protected amount, monthly savings, lender assumptions and remaining horizon. As the purchase approaches, match maturities to reservation, notary and completion payments. Keep investment and deposit accounts visibly separate and document which assets are not available for the transaction. Check provider authorisation and understand custody or deposit protection rather than assuming “safe” means risk-free. If the household’s income, relationship or location changes, recalculate before taking more risk. A structured bucket plan sacrifices some upside in exchange for a higher probability that the planned cash is available when a suitable home appears.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
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Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
