In this article, I wanted to report about my first year of investment in the real estate crowdfunding platform Housers, which proposes investments in Spain, but also in Italy & Portugal.
Inside the article, you'll hear about the platform itself, how to open an account and start investing, and also I'll share my results with the platform after over two years of investing. Let's start!
Housers is a real estate crowdfunding platform based in Spain, so you can invest in the Spanish real estate market, and now also in Portugal and Italy. Usually, European real estate crowdfunding platforms are located in the UK or the Baltic States, so it's quite nice to be able to invest in other countries as well to diversify your portfolio.
The platform itself is really great with a lot of offers available in the countries I mentioned earlier. The platform offers rental investment projects (where you become part owner of a property and benefit from the monthly rent) and real estate development projects (where you get your money back with interest after a given period). Recently, most of the projects on the platform are real estate development projects.
At the moment, the platform has over 130,000 investors across Europe.
I would have invested in Housers long before if it hadn't been for Spanish regulations preventing investors outside of Spain from investing (unless you go fill some form at your local Spanish embassy). However, this regulation has been lifted and anyone in Europe can now invest in the platform.
The returns you will get on Housers depend totally on the projects you are going to invest in. In general, most of the projects on the platform have returns between 8 and 10% per year. On average, Housers announces an average return of 8.38% for its investors on the platform.
As with all real estate crowdfunding platforms, the guarantee on each project of the platform is the real estate attached to the project, which will be sold in the event of a problem with the project.
They also use a very transparent project rating system, which will allow you very quickly to choose the projects in which to invest on the platform.
To invest on Housers, you first have to create an account on the platform, which was very easy to do and including the identity verification part, it took me less than 5 minutes.
Then, you will be able to browse the offers available on the platform, and instantly see what are the returns associated with these projects.
From there, you can simply access all the details of each project just by clicking on it.
To invest, you don't even need to make a transfer before to fund your account, because you can directly pay by credit card for each project in which you want to invest (that's what I did). Of course, it is also possible to make a transfer if you wish.
Note that the minimum investment in each project is 100 Euros, which will allow you to quickly diversify into many projects on the platform (which I recommend to reduce the level of risk in your portfolio).
Now let's see how my investment portfolio is doing on Housers.
I have now invested in 28 properties in total, with a capital of over 7,000 euros. My overall return is right now just over 5% which is lower than other similar real estate crowdfunding platforms. This is mainly due to the fact that many projects have had problems with late payments, mainly due to the COVID-19 crisis. However, they have done a good job restructuring most of the projects that are overdue on the platform, and currently I only have one project in my portfolio that is considered overdue.
On the long term, my average return should be 8.40% once the projects I have invested in have come to their term.