Real estate vs Fund option Cost Summary?

What are the pros and cons of each option (for a US Citizen)

From what I understand:
Real estate requires initial real estate agent, property tax payments, and possibly tax filings in Portugal (even if you don’t rent your property out) - anyone summarized what all the initial and ongoing costs are for this options?

For Funds, it looks like you have to file US taxes and the funds need to the PFIC compliant, and there are usually entry fees and exit fees - any idea on what the overall costs are here - I know these vary by fund, but just a rough estimate of median fees and other costs (like maybe US CPA costs).

Hi There - I have invested in a Portuguese Fund - costs are normally what you have to pay if at all in the US - I live in the Uk and dont have t pay anyone - I really dont see a reason to pay anyone just because you invested in a fund. The one I did has an investment ticket of 350k Euros with a very small fee built in so I dont pay anything more. YOu can ping me directly and I am happy to chat- I also have asked to get a board seat on the fund to represent investors so I am very comfortable with the fund option

The average fund is charging somewhere between 2-5% for a setup fee, which typically comes out of the 350k - but some charge none. The bank is going to end up charging around 1k/yr fees for holding the shares (something like 15 bips plus some base fees). I haven’t seen exit fees. Fees for handling your PFIC statements just depends on your arrangements with your accountant, no one can quantify that.

Summarized all my research here into a cost model here for all the options I have considered:

3 Likes

Thanks Jim

Found your sheet very helpfull,
I am very newbie here (1st day), what do u think i should start ?