Crowdinvesting is a modern form of financing that has developed in parallel with crowdfunding.
Crowdinvesting is becoming more and more popular and popular. This is also the reason why in Austria and Germany more and more online platforms, which exclusively mediate crowdinvesting projects, can establish themselves.
What is crowdinvesting?
This financing model allows private and legal entities to invest in an entrepreneurial project. Most of these projects are corporate projects in the region. The financial support of such a project is thus an important support of the domestic economy. Also very popular are projects with a social character.
Real estate crowdinvesting as a popular investment
In particular, the support of projects in the areas of animal welfare, climate protection and education is well received by investors. Crowdinvesting projects in real estate projects are also in high demand. Real estate projects are considered to be very future-oriented and secure, so that investing in a real estate project within the scope of crowdinvesting is considered to be particularly low risk.
In addition, investors can usually gain an overview of the ongoing development of the project through on-site visits. This gives a feeling of security and the certainty that the investment will be meaningfully used.
In contrast to crowdfunding, investors receive crowd capital in addition to physical goods in return for their commitment, the paid-in capital and interest after a certain term back.
But only if the company can afford the repayment of the capital financially. Thus, there is always some risk for the investor in crowd investing: If the subsidized company is in financial distress, most of the capital invested is also lost and will not be repaid to the investor. In such a case, the investor suffers a “total loss”.
The exact project details, returns, interest rates, maturities, and thresholds needed to complete the project vary from project to project, but can always be transparently extracted from the project information on reputable crowdinvesting platforms.
Pros and cons of crowdinvesting
For private investors, crowdfunding is attractive for a variety of reasons:
- the chances of high returns are comparatively high
- even small investors can invest in start-up companies (this not infrequently already starting from a minimum deposit of only 100.00 euros)
- There is a risk diversification because the economic and financial risks are spread among several investors
- short maturities (often only a few months)
- often contractually agreed silent participations
- often products, services and vouchers as an additional reward for the investment
- the form of financing is transparent, investors can read all project details and conditions in advance in the project information on reputable crowdinvesting platforms
- simple handling
- no further participation restrictions for interested investors (investors only have to be of legal age and usually have a residence in the country of the seat of the platform)
- the employees of the online platform can generally help with questions about crowdfunding
Unfortunately, crowdfunding also has some negative aspects for investors:
- Investors do not receive shares in the company through the investment
- Private investments do not get a say
- early terminations are usually excluded
- Risk of “total loss” if the business objective can not be achieved
Crowdinvesting at Rendity
Rendity is an Austrian crowdinvesting platform specializing in real estate. The company was founded in 2015. Since the company was founded, Rendity has already been able to raise investment capital of over 8,335,250 euros in 18 projects.
Of these 8,335,250 euros, 1,295,796 euros have already been repaid to a part of the more than 900 investors. A typical funding target for Rendity projects is around 400,000 euros. The projects usually have a term of two months. Some of Rendity’s projects offer not only high return-rewarded investments, but also investment associated with profit sharing on existing property.
The largest crowdinvesting project from Rendity so far
With a total volume of 1,499,000 euros, the real estate project “No10 – Renngasse 10, 1010 Vienna” is the most successful crowdinvesting project in the history of Rendity.
Which projects are currently being presented on Rendity?
On the website of Rendity, two real estate projects are currently being presented, in which interested investors can invest. The projects are described in great detail on the basis of photos of the buildings and meaningful project descriptions.
Details about the exact crowd investing conditions are also displayed directly. This allows users of the website to read the exact terms, yields and minimum and maximum payments before investing.
Currently, investors have the opportunity to participate financially in the project “Bräuhausgasse 7 – 9”. The return on this project is 4% per year and the duration has been set at 48 months. The estimated total volume for the project is 9,700,000 euros. The distribution will be made every three months.
The project “Bräuhausgasse 7 – 9” is a fully leased double interest house. The house is located at the addresses Bräuhausgasse 7 – 9 and Margaretenstraße 98 in a central location in the 5th district in Vienna. The property is well connected to many leisure facilities and shopping facilities. Also a subway stop (station Pilramstraße) is located in the immediate vicinity.
Every year, after the planned expansion and modernization of the property, rental income of more than 450,000 euros is expected. Due to the high demand for housing in Vienna and the resulting housing shortage in the Austrian capital, the planned real estate project has best future forecasts. Thus, it can be expected that in the long term, a full lease can be achieved.
The real estate project with the name “Obere Amtshausgasse 16” is the second real estate investment project currently being presented on Rendity. Investors can look forward to an above-average return of 6.5% per annum on this project. The duration of the project was set to 24 months. The total volume of the project amounts to 4,650,000 euros.
The distribution is made annually. The real estate project “Obere Amtshausgasse 16” is a renovation project in the middle of the 5th district of Vienna. The property is well connected to many major amenities and the public transport network. The aim of the project “Obere Amtshausgasse 16” is to completely renovate an existing residential building and at the same time expand the attic.
During this process, 18 new housing units are to be built. Some of these units will have balconies, loggias, gardens or terraces as planned. The usable area of the project will be 1,087 m², the open space 144 m².
The new apartments, which are to be built in a very modern and energy-efficient way, will be sold at market prices. Due to the excellent location of the property, the high demand for living space in the center of Vienna and the exclusivity of the property, it can be expected that the real estate project can be implemented very successfully. Investors are unlikely to face losses in this crowdinvesting project.
Crowdinvesting at Rendity – Experiences
When looking at the topic of “Rendity Experiences” or a review of Rendity, there is currently feedback that especially the opening / investment is easily possible. Also, the repayment has been made punctually according to experience. According to this information on the net, you can count on Rendity to be a reputable platform for crowdinvesting.