Golden Visa Last Call: Is Investing in Funds or Real Estate the Better Option?
The Portuguese Golden Visa program is about to enter its final phase, and many potential investors are pondering which type of investment—in real estate or funds—would be more beneficial for them in terms of obtaining a visa. Even though both choices come with their own benefits, investing in a fund may have more advantages than buying individual properties.
According to the Portuguese Securities Market Commission (CMVM), the number of real estate funds operating in Portugal has been increasing, and their total assets under management are expected to reach 12.3 billion euros by the end of 2022.
This demonstrates that institutional and individual investors alike are becoming increasingly interested in the real estate market in Portugal.
Investing your capital into a golden visa fund that invests in real estate can provide investors with several benefits:
It enables greater diversification, as most funds invest in a portfolio of properties rather than just one. This type of investment has several benefits. This lowers the overall risk of investing in a single piece of real estate and the costs of managing multiple properties individually.
Liquidity is another advantage of investing in real estate funds. At this stage, when the timing is of the utmost importance for the final investors, investors have greater flexibility and control over their investments and principal thanks to the fact that shares in a fund can be bought and sold quickly and without much difficulty, in contrast to the purchase and sale of actual properties.
Investing in a fund can be a tax-efficient way to apply for the Portuguese Golden Visa Program. Unlike investing in real estate, there are no property taxes to pay, making it a more cost-effective option. Additionally, the fund investment process is typically faster than buying real estate, taking only two weeks on average to complete. This can help investors to apply for the Golden Visa Program before it ends, securing their future in Europe.
In addition to the benefits, Investing in a real estate fund, on the other hand, can give investors access to properties unavailable to individual buyers. Many funds invest in large-scale projects, which may be beyond the financial means of individual investors.
It is essential to remember that investing in a fund is not without its associated dangers, and prospective investors ought to carefully consider the fund's track record and investment strategy before committing their money to it. Investors who want to make an informed decision may find consulting with a financial advisor or an attorney helpful.
In conclusion, investors interested in acquiring their Portuguese Golden Visa should consider investing in either real estate or funds. On the other hand, investing in a fund can provide investors with greater diversification, liquidity, and access to a more significant number of properties with a faster process and good returns .
Please reach out to HillForte to qualify your investments.
