Rent vs Invest: Buying an Apartment or Investing with Urbanitae Direct Investments
Real estate investment remains one of the preferred options for those looking to protect their wealth and generate stable income. However, the way to access the market has changed. Buying an apartment to rent is still a classic option, but it requires a significant initial financial effort and ongoing commitment. In contrast to this traditional model, more flexible and professionalized alternatives have emerged, such as Urbanitae Direct Investments, which allow access to high-quality real estate assets without having to manage a property and with much lower investment amounts. In this article, we analyze the real differences between these options, comparing costs, efforts, risks, and returns, providing a clear view to help make informed decisions.
What it Really Means to Invest by Buying an Apartment to Rent
Buying an apartment with the intention of renting it out is a direct and tangible way to invest in real estate, but it involves a more complex process than often perceived. Acquisition requires a significant down payment and comes with taxes, notary and registration fees, as well as potential renovations to adapt the property to the current market. Once the property is acquired, management begins, which can be more demanding than expected. Finding tenants, negotiating contracts, resolving issues, and coordinating repairs or maintenance are part of the owner’s routine. Even when delegating part of this management, supervision is always required.
Returns are also affected by these factors. Although headlines suggest high profits, in reality, after accounting for recurring expenses, potential defaults, and periods without tenants, net returns are usually lower than expected. In many urban markets, a realistic return ranges between 2% and 3% per year. For some investors, this stability is sufficient; for others, the effort required to achieve it is high.
How Investing with Urbanitae Direct Investments Works
Urbanitae Direct Investments offers a different way to access the real estate market. Instead of taking full ownership of a property, the investor participates in selected assets managed by a professional team, with the advantage of entering with smaller amounts and without involvement in day-to-day operations. This approach allows investment in high-quality residential, commercial, or logistics assets without having to search for opportunities, analyze documents, or manage tenants.
The process is designed so the investor can focus on their strategy without worrying about management. The platform handles everything: from property selection and due diligence to asset operation and eventual sale. This makes Direct Investments particularly interesting for those who want to invest in real estate with minimal effort, using a transparent model aligned with professional management experience. You can check in detail how this service works on the Urbanitae Direct Investments page.
In terms of returns, buying to rent can offer stability but is usually affected by expenses and risks that reduce net returns. Urbanitae Direct Investments projects, on the other hand, aim to capture asset value through more efficient, performance-oriented management, which may result in higher target returns. In both cases, risk exists, but its nature differs: one comes from managing your own property; the other from trusting the operator’s professional selection and strategy.
Numerical Examples: How Much Could You Earn?
Imagine an investor has €80,000. If they decide to allocate it to buying an apartment valued at €250,000, they will likely need financing and must cover all associated costs. Typically, a property of this value can generate gross rental income which, after deducting community fees, insurance, maintenance, taxes, and vacancy periods, results in a net return of around 3%, roughly €2,400 per year.
If the same amount is invested in an Urbanitae Direct Investments project, the investor’s experience changes immediately. Without entry, maintenance, or management costs, the capital is fully allocated to the investment. With target returns potentially higher than traditional residential rental, annual returns could range between 6% and 8%, or approximately €4,800 to €6,400 per year. This is not an exact comparison—each project has its own risks and strategy—but it reflects the typical difference between both models.
Which Option Fits You Best?
Choosing between options is not only about expected returns but also how each investor wants to relate to their money, time, and risk tolerance. In traditional real estate, emotional factors are significant: the idea of owning a physical asset and “seeing” the investment still generates a sense of security that is hard to replace. Those who value tangibility often feel more comfortable buying property, even if it means assuming higher concentrated risk or dedicating more time to management.
Financial capacity and debt tolerance also play a role. Buying an apartment aims to build wealth through gradual loan repayment, even if net rental returns are moderate. Urbanitae Direct Investments, in contrast, is often preferred by those who prioritize efficiency. Investors with limited time or who do not want to tie their financial capacity to a single property find this model attractive, as it allows diversification with smaller tickets, access to markets or assets they could not reach on their own, and avoids all operational management.
