Real estate (usufruct) vs ETFs: advice needed
Hey,
I'm in a lucky position and would really appreciate some outside perspectives.
I'm 29F and come from a small family (no siblings) and my parents and grandparents have always worked hard. They're also quite generous towards me and try to be tax-efficient and forward-thinking when it comes to inheritance.
3 years ago, I received gifts and inheritance that brought my net worth over €1M.
Right now it's roughly allocated as follows:
- €300K in a term account
- €500K in AXA Court Terme
- The other part is invested in SPYI and in bonds
My "issue" is that the majority (€800K) is currently barely generating any return.
The €300K becomes available soon, my instinct is to gradually invest this (DCA over e.g. 1 year) into SPYI.
For the €500K, my dad has a different idea: buying real estate together using a bare ownership/usufruct structure (naakte eigendom/vruchtgebruik).
I understand the logic (tax efficiency) but on the other hand, my parents already have quite some real estate in their portfolio, and I fully own an apartment as well. Managing all this at some point in time might be troublesome. Investing the €500K in SPYI feels simpler/easier to me.
I currently live in my apartment, but eventually would like to have a family + nice house. From that perspective, it might make more sense to keep more capital flexible.
I’ve also been thinking about moving towards barista FIRE at some point (working less), but this doesn’t really align with how my parents view work. For them, it’s an important and meaningful part of life, and I think they’re also a bit worried that I might be “wasting” opportunities or going backwards.
So my questions:
- Would you push more towards ETFs or lean into real estate because of the tax advantages (with the usufruct structures)?
- What do you think about flexibility vs tying up capital long-term?
- Do you experience tension between your own life/financial choices (like barista FIRE) and family expectations?
Thanks!