Direct property investment is the norm for personaluse and still very popular for investment properties. The trend is nevertheless towards indirect property investment, either by commissioning a legal entity with a distinct personality, but appointed by the individual investor, or if the investor does not wish to handle the property management himself, by leaving it to professionals and confining himself to protecting his interests through property and participation rights under company law.
Direct property investment creates structuring issues and requires action where property succession involves several heirs or successors. Such issues can usually be resolved, but occasionally necessitate making unpopular decisions as well.
From a tax perspective, direct property investment does not contain more problem areas than indirect property investment; the problem areas are simply different.
Direct property investment vs. indirect property investment is a decision that must always be made on a case-by-case basis, considering all the opportunities and risks as well as all the advantages and disadvantages.
