The thing stopping most people from European property investment is money. Rightly or wrongly, there is this idea that investing in European property markets requires a lot of capital. However, one proptech company is changing that.
BitOfProperty wants to make European property investment, and international property investment in general, mainstream. In order to do this, they needed a platform that allowed investors to start with small amounts, provided them with a transparent ownership structure and allowed them to carry out the due diligence process.
The firm worked hard to develop this technology that leverages both crowdfunding and blockchain to ensure property investment is now accessible to everyone. For as little as EUR50 (PHP2,845), you can now invest in property via the BitOfProperty platform.
A legal structure for the company was created in Estonia where the platform can now acquire properties. Investors have the opportunity to fund an acquisition of a property by co-investing alongside with others. The EUR50 gives investors a fraction of the property and entitles them to rental returns just like any other investment. There is no limit to how many units of a property a person can buy.
Best of all, the BitOfProperty platform eliminates other pain points that international property investment can bring.
“The platform is built in a way that brings more transparency and safety to all investors regardless of if they are local or come from overseas,” Karl Vään, Co-Founder and CEO of BitOfProperty, explained in an interview with Dot Property. “All transactions are recorded on a public database (blockchain) making ownership movements are seamless and immutable. Additionally, investors can read their investment agreements on smart contracts.”
Estonia is not the first country many people would think about when it comes to European property investment, but the country does have more potential than other established markets.
“When compared to Europe, then rental returns in Estonia are relatively high and attractive for passive investors. On the BitOfProperty platform, investors can receive between 5.6 to 7 percent net rental return per annum. These returns are on the high side, but still remain in the range of local averages. Investors have also the potential to earn capital gain from any property price increases. After three years, the property is sold and the principal, along with any capital gains, are returned to the investors,” Vään says.
Crowdinvesting is currently ongoing for two properties in Tallinn, the capital of Estonia. The minimum investment is EUR50 and there are no transaction fees involved. There is a 10 percent management fee taken out of the rental returns, but that’s it.
Investment for everyone
Ultimately, the BitOfProperty platform gives everyone a chance to benefit from property investment. You no longer need to save up large amounts of money to be a property investor. You also don’t need to worry that one market downturn will leave you in financial ruin. With BitOfProperty, both the financial requirements and risks of investment can be mitigated to a level you feel comfortable with.
“BitOfProperty is the best avenue for investors who do not want to take too much risk, especially those who want to learn about the markets and understand them before investing large sums. Investors can participate with little capital and learn about the market while investing. We believe that this is the best way to go about your first investments in an unknown territory,” Vään stated.
Make your first property investment today! Click here to get started with BitOfProperty!