Professional vs Traditional real estate investing
In this post we present a summary of the head to head comparison between the traditional real estate investing approach (i.e. buying a property) and professional investing in real estate.
| Type | Advantages | Disadvantages | How |
|---|---|---|---|
 Traditional | 1. Sense of security 2. Sense of ownership 3. Time horizon is long | 1. Barriers to entry 2. Transaction delays 3. Large maintenance costs 4. Large set-up costs 5. Taxes can be substantial 6. Uncertainty in revenues 7. Risk is concentrated 8. Winner’s Curse | Local real-estate broker |
 Professional | 1. No minimums 2. Fast execution and ease of investment 3. Significantly lower costs 4. Tax free 5. Maintenance costs are optimized 6. Diversification | 1. Daily valuations create a sense of insecurity 2. Daily valuations shorten the investment horizon | UCITS ETFs |