Direct property investment has the following advantages:
- Legal form
- Ownership security
- Properties in sole ownership offer freedom to act and make decisions
- No (start-up and running) costs for an intermediate legal entity
- Property and portfolio volumes
- No pressure to create large portfolios (in contrast to indirect property investments listed on a stock exchange)
- No pressure to acquire property (in contrast to property funds and investment trust properties)
- Independent administration possible / no management pressure
- No double taxation
- Timely tax planning (often planning requirement, in particular when the properties are not part of the personal assets, but are held in the business assets)
- Risk or benefit (depending on the canton) of classification as a professional real estate broker) by the tax authorities
- Assumption by the tax authorities that the activity no longer falls within the definition of private asset management and is developing into a commercial or business activity.
- Loss statement depending on the canton, only relevant if accounts are kept.
- Private asset management does not require accounts to be kept; accounting would be proof of a commercial self-assessment by the taxpayer; clarification of the existence of accounting by the tax authorities; the tax authorities reject the loss statement in the absence of accounts.
The disadvantages of direct property investment are the reverse of the aims of indirect property investment, namely:
- No anonymity
- No flexibility (only asset deal, impossible to switch to a share deal)