How to compare investment funds vs low-density, personal residential real estate in GV program?

That list of funds for the GV program is great! So, how should we think about comparing that route (500kE after 1-1-22) vs $280kE for personal, low-density/interior residential real estate? The amounts “invested” (and I use that term loosely in either case :wink: are so different that I wonder if the residential route might be better? (Considering that we would probably prefer a rural location with great view and close to the Porto train line, and aren’t afraid of remodels.) But for the foreseeable future we would only be visiting PG; maybe moving there full-time later. So we have to consider the ongoing costs of maintaining personal residential RE. Thanks for any overall guidance!

I tend to think it’s really more about
a) comfort level with type of investment
b) your goals
c) I guess, how much capital you can put up

Some people understand PE funds and don’t mind any of it. Others balk at the covenants and the fees and think they’re horribly wrong. I’ve done PE for a while and for me after doing all the reading I realized they’re just PE funds so whatever.

Some people just understand real estate better - either as ownership or as rental. It’s certainly the more comforting option for many since most people understand owning a house - but also has up front costs and ongoing concerns since you can’t just leave a building sitting around for 5 years generally (unless you do a mercan-like thing but I’d view that more as a fund-like investment with better asset backing and lower fixed returns).

Some people don’t mind risking 500k, some only have 280. There’s costs that come with that lower price point (typically lower returns).

I know someone or a couple someones (jim?) has tried cranking out a spreadsheet to compare the routes from a financial standpoint, but I think there are too many apples-to-oranges and uncertainties (actual cost of RE maintenance, projections of fund growth or RE appreciation, fund risk of default, etc) to put a whole ton of stake in that alone.

I did funds but I kind of regret I didn’t go in on Pedrosan’s apartment-building deal. The reason I didn’t was because I know jack-all about real estate and it’s not super clear that having your first try be with a property 4000 miles away in a foreign country would have been the best option. But now I kind of wish I had the apartment to use, as the carry cost really wouldn’t have been that bad even if I didn’t use it and even if I were doing AirBnB to see other parts of the country (since I also know that living in Lisbon isn’t the plan)… but I was focusing too much on that bottom-line thing as opposed to the bigger picture. However, it took many months before that bigger picture came clear in my mind and by then the moment had passed… and now I’m considering having to sink another 300k into doing what I really wanted to do when I could have simply flipped an existing investment (since you can’t change paths from fund to RE mid-stream). shrug Probably no matter what you’ll have some "I wish I’d"s.

That’s a great answer–thank you Jeff.