The Question of Questions: Real Estate or ETFs? (Iconic photo) izusek / Getty Images / Torsten Asmus, Radoslav Zilinsky, collage: Dominik Schmitt
Julia Z. inherited 500,000 euros. With the money she wants to build up a passive income of 1000 euros per month.
The digital asset manager Growney has calculated for you which is better: buy a property, take out a loan or invest in ETFs.
Life is easier with a passive income. Because who doesn’t like to get money every month without having to actively work for it? Probably the most popular ways to earn money passively: ETF or real estate – or both. But what works better?
Julia Z also asked herself this question. (Name changed at the request of the protagonist) placed. The mother of a son inherited half a million euros. By then she had already paid off her home. Your goal: to build up a passive income of 1000 euros per month with this sum.
ETF or real estate? Or both?
She went to her wealth manager Growney with the question. He gave her three options:
She buys a property for 250,000 euros without taking out a loan. The rest will be invested in ETFs. She buys a property for 500,000 euros, half of which is financed – so she only pays 250,000 euros and finances the rest with a loan. Here, too, the rest of the inheritance, i.e. the remaining 250,000 euros, is invested in ETFs worldwide. The entire inheritance of 500,000 euros is invested in global stock ETFs.
The question of questions: What is the best way for Julia Z. to pay off 1000 euros per month in the long term?
Version 1: Buy property without credit
When she buys a property, there are additional costs for the notary and taxes of around 15 percent. Based on the purchase price of 250,000 euros, that is 37,500 euros.