You want to build long-term wealth through real estate. You see its potential for stable returns and as a hedge against inflation. But when you start exploring your options, the path gets confusing.
You might see REITs offered on low-cost brokers, promising easy access. Then there’s crowdfunding, offering high yields on specific projects. Or maybe you’ve considered buying a rental property yourself, the traditional way. How do you choose? And more importantly, how do these options stack up against a platform like BRXS?
This guide will cut through the noise. We’ll compare these four paths head-to-head—factually and transparently—so you can find the one that truly lets you invest in real estate, your way.
The Four Paths to Real Estate Investing
Let’s start by defining the contenders:
- Publicly Traded REITs: Think of a REIT (Real Estate Investment Trust) as a mutual fund for property. You buy shares in a large company that owns a vast portfolio of buildings. It’s easy and liquid, but you’re a small fish in a very big, and often volatile, pond.
- Traditional Crowdfunding: Here, you and other investors lend money to a third-party developer for a specific project. You get a fixed interest rate, but you’re taking on the risk of that developer’s success, and your money is typically locked in for years.
- Direct DIY Purchase: The classic landlord route. You buy a property yourself, manage it, and keep all the profits. This offers total control but requires huge upfront capital and becomes a second job.
- Investing with BRXS: A modern, hybrid approach. You can either invest in property-backed Notes for stable, hands-off income with a low entry point, or use our Private Deals service to acquire full ownership of a property without the traditional hassle.
The Deep Dive: A head-to-head comparison
Now, let’s see how these methods compare on the factors that matter most to an investor.
1. Security & Risk: What’s really backing your investment?
When you invest in property, you expect the security of a physical asset. But not all paths offer the same level of protection.
The Problem: With a REIT, you are an unsecured equity holder. You own a share of a company, not the property itself. If the REIT faces financial trouble, its lenders get paid first, and shareholders are last in line. With traditional crowdfunding, you’re often a second-rank lender. This means a bank has first claim on the property, and you only get what’s left over in a default—a far riskier position than it sounds.
The BRXS Solution: A key feature of BRXS Notes is their strong security structure. The majority of our Notes are secured by a first-rank security right on a specific property, putting you in the strongest lender position, similar to a bank. In some cases, where a property is partly financed by a traditional mortgage, our Notes may be secured by a second-rank right. The specific rank of the security is always clearly and transparently disclosed in the documentation for each individual investment offer.
Crucially, this security right—whether first or second-rank—is held by an independent foundation (Stichting Zekerheden BRXS), a bankruptcy-remote structure designed to protect noteholders’ interests even if BRXS itself were to fail. This provides a high level of security and clarity on your position before you invest.
2. Transparency & Control: Do you know where your money is?
The Problem: A REIT portfolio is a black box. You own a tiny slice of hundreds of properties and have zero say in management. With crowdfunding, you have no control over how the third-party developer runs the project.
The BRXS Solution: We believe in transparency. With BRXS Notes, you know the exact address and details of the property your investment is financing. With BRXS Private Deals, you have the ultimate control: you are the full legal owner of the property and make all major decisions, from renovations to when to sell. We just handle the day-to-day work for you.
3. Costs & Entry Point: What does it really take to get started?
The Problem: Becoming a DIY landlord in the Netherlands is incredibly expensive. On top of a 20-30% down payment, investors face a 10.4% real estate transfer tax, plus notary and agent fees. For a €300,000 apartment, the total cash required can exceed €100,000, creating a high barrier to entry for many retail investors.
The BRXS Solution: We founded BRXS to democratise access to real estate. With BRXS Notes, you can start building your property portfolio from just €100. We do this by embedding the high transaction costs of a property purchase into the total investment offering. This effectively fractionalizes the costs across all noteholders, making it possible for anyone to begin their investment journey without facing the large upfront cash outlay required in a traditional purchase.
4. Effort & Returns: Is It passive income or a second job?
The Problem: DIY property investing is a business. Sourcing deals, vetting tenants, handling midnight maintenance calls—it’s a massive time commitment. REITs are passive, but your returns are tied to stock market whims, not just property performance.
The BRXS Solution: BRXS offers two distinct paths to match your goals.
- BRXS Notes are designed for completely hands-off, passive income. You earn a stable 4-6% fixed net interest paid quarterly, plus a potential bonus from rental surplus and capital appreciation, all while our expert team manages everything.
- BRXS Private Ownership offer the high-growth potential and control of direct ownership, but we do the heavy lifting. We find the deals, support the purchase, and can manage the property for you. It’s the best of both worlds.
At a Glance: How the four paths compare
| Feature | Publicly Traded REITs | Traditional Crowdfunding | Direct DIY Property Purchase | BRXS (Your Way) |
|---|---|---|---|---|
| Investor Control | None | None | Full Control | Your Choice: None (Notes) or Full (Private) |
| Security | None (unsecured shareholder) | Often second-rank | Direct legal title | Generally first-rank mortgage right (Notes) / Direct Title (Private) |
| Minimum Capital | Price of 1 share | €100 - €1,000 | €100,000+ | €100 (Notes) / Property Value (Private) |
| Key Risk | Stock market volatility | Developer default | Management burden | Illiquidity (but with P2P exit option for Notes) |
| Investor Effort | Very Low | Low (but high due diligence) | Very High (a second job) | Very Low (Notes) / Low-to-Medium (Private) |
A quick note on taxes (Box 3)
Tax disclaimer: The following information is a general overview of Dutch tax rules. It is not personal tax advice. Always confirm your own situation with a qualified adviser.
For Dutch residents, all four investment routes—REIT shares, traditional crowdfunding loans, BRXS Notes and BRXS Private Deals—are currently treated as Box 3 assets (“wealth tax”). Under today’s rules you are taxed on a deemed annual return on your net assets, not on the rent, interest or dividends you actually receive. That keeps the tax playing field relatively level for now.
A draft bill now before Parliament aims to move Box 3 to an “actual-return” system from 1 January 2028 (timetable and details may change). If enacted, the impact on BRXS products would be:
BRXS Private Deals:
- Capital gains would be taxed only in the year you sell the property, letting long-term investors defer the tax bill.
- Rental income would be taxed annually once received.
BRXS Notes:
- The fixed quarterly interest and potential bonus interest would be taxed in the year you receive it. The predictable, cash-based interest makes for straightforward and predictable tax planning.
Which path is right for you?
- If you want to day-trade real estate like a stock and are comfortable with market volatility, REITs offer the necessary liquidity.
- If you want to become an entrepreneurial, full-time landlord and have significant capital and time, the DIY path offers complete autonomy.
- If you want a modern, balanced approach that overcomes the trade-offs of the old ways, BRXS was built for you.
- For Foundation Builders and Secure Retirement Planners, our Property-Backed Notes offer a simple, secure, and hands-off way to earn stable passive income.
- For Strategic Portfolio Builders and High-Growth Seekers, our Private Ownership Deals provide the control and upside of direct ownership, without the landlord headaches.
Ready to invest in real estate, your way?
Investing in property shouldn’t be a choice between a volatile stock, a risky loan, or a second job. At BRXS, we’ve combined technology, expertise, and a superior security structure to offer a smarter, more accessible path to building wealth through Dutch real estate.