CROWDFUNDING IN REAL ESTATE, AN AVERAGE RENTAL YIELD OF 9.3% IN FRANCE 2020
Investment is Real Estate Rental through Crowdfunding is actually a strong and profitable trend.
Apart from competing platforms, “Grapen Invest” (https://grapeninvest.com) the most recent newcomer, relies on a Blockchain
foundation or set-up, to generate more liquid and attractive investments. Explanations
Real Estate Crowdfunding: an interested tool to diversify
After Parking lots and Boxes, it is now Real Estate Crowdfunding that appeals to Investors looking for high rental returns. Started as a niche Investment, Real Estate Crowdfunding is now attracting an ever increasing audience, and has set records in 2020, and retaining the status of the most profitable investment of the moment, with an average rate of return of 9.3% for savvy investors.
Real Estate Crowdfunding consists in raising funds from private investors, in order to finance a project in Real estate. And this type of Investment is attracting a lot of individuals or companies, since it is affordable to any kind of budget. With tokens available from 50€ or 100€ for smallest projects, it is becoming an investment for the general public, thus attracting Investors looking to diversify, along with savvy investors.
An opportunity that Grapen Invest (https://grapeninvest.com) is now pursuing by launching the First Real Estate Crowdfunding platform tied up with the Blockchain. What’s new then? The possible transfer of tokens on secondary markets and therefore a greater liquidity of the Investment, in addition to an average rental yield which is estimated between 6% and 10% on an annual basis for a 10 year duration.
Liquidity and Security: Grapen Invest novelty is combining Blockchain with Real estate Crowdfunding
Actually they are few dozen Real Estate Crowdfunding platforms in France, but Grapen Invest is indeed the only one which is tied up with the concept of Blockchain, a very transparent database, reliable, with a high level of security, without a central control body. This backup implies that each type of data entered in the database, cannot be altered, modified or falsified.
The purpose? Allowing Investors to hold more liquid tokens than usual shares, the possibility to be sold on secondary markets. A novelty claimed by the platform which offers an interesting rental return over 10 years on one hand, between a yearly 6% to 10% for each project, but also the possibility of reselling the tokens — i.e. the rights to receive a share of the income rental of a property, as an example — in the short or medium term in the secondary markets, at a price potentially higher than the purchase price. If the risk is part of any Investment, it can however be accepted, taking into account the potential return and the minimum stake of 100€ per token for some of the smaller projects.
By investing in small and medium-size towns in France, Grapen Invest relies as well on locations that are cheaper to acquire, rather than in larger urban areas, with a high rental yield and above all a high potential development. The platform, thus, intends to take advantage of a margin of ever increasing rents, and the attractiveness of small towns, moving away from tense areas, in which rents of the roof are becoming a reality
Tokens are an investment at lower cost than SCPIs Societe Civile Professionnel Immobilière
To position itself as a profitable alternative to SCPI, which involves management fees and subscription commissions, the Grapen Invest model is based on one-off fees of 25%, included into the purchase price of the fund. Token, or Token in English. The reduced costs as well as the low initial investment are key arguments to gain many new investors
Above all, the possibility of exiting the contract before its closing, is positioning our new platform as a pioneer, thus adding a kind of comfort and a real level of interest to the investment. Since the stake can be recovered after 10 years, when the property is brought for sale, along with the rental income provided each and every quarter, or semester or each year according to the very details of each project, the sale of tokens on the secondary market offers 24 hour a day, another financial opportunity.
On the tax side, it is a One-Time Lump Sum levy of 30% is applied to this income, in other words the famous Flat Tax. It should be retained that these investments in Tokens are not to be accounted for the calculation of IFI, the Real estate Wealth tax.
Warning: Crowdfunding and investments offers are involving certain risks, as much as the partial, or even the total loss amount invested