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!
Even if I had a nice initial experience with the Housers platform, a lot of projects on the platform started to have issues over the years & this was amplified by the COVID-19 crisis in 2020. At the moment, over a quarter of my portfolio has late payments issues. Therefore, I can't recommend this platform at the moment. I will of course update this review as the status of my portfolio on Housers changes.
Before we dive into how to use the platform & my results so far, let me tell you a bit about Housers. It's basically a real estate crowdfunding platform based in Spain, so you can invest in the Spanish real estate market as well as in Italy, and now also in Portugal & Italy. Usually, the Europeans real estate crowdfunding platforms are located in the UK or the Baltic countries, so that'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 deals available in the countries I mentioned before. There is a good mix of equity-type projects (where you become a part-owner of property and enjoy the monthly rent) and development loans (where you get your money back with interests after a given period).
I would have invested in Housers way before if it wasn't for the Spanish regulations that prevented investors outside of Spain to invest (unless going to some paperwork at your local Spanish embassy). However, now this regulation has been lifted and anyone in Europe can invest on the platform.
First, let me go into my investments to actually show you what was my first investment ever on Housers, which was a standard buy-to-let flat in Barcelona. The yield was quite high for the platform, at around 4%. Remember that it's really comparable to the yield you can actually get for a similar flat if you were buying it & managing it yourself in Spain. I invested 550 Euros in total in this first deal.
You can pay for investments by bank transfer but also by credit card, which is very convenient compared to other platforms. This first project I invested in is currently rented, so I am still earning some income from that flat at the moment.
The cool stuff with Housers is that there is a feature called Instarent, and basically this means that even if they don't rent it right away, they actually already give you the income from the rent. That's quite nice, especially if they take a lot of time to renovate it and then to find a tenant: it will still generate income from day one for you.
Let's now have a look at how my portfolio is doing at the time I last updated this article.
I've now invested in 28 properties in total, with a capital of over 7,000 Euros. My overall yield is currently just above 4%, which is quite low compared to other similar platforms. This is mainly explained by the fact that a lot of projects have been delayed or are having late payments issues, mainly due to the COVID-19 crisis. As I am writing this update, over a quarter of my portfolio is experience some kind of issue on the platform.
Overall, despite the fact that I really like the platform as it allows to make real estate investments in the south of Europe with a very low starting capital, I can't recommend this platform at the moment due to the issues on many properties offered by the platform. I will of course update this recommendation as the COVID-19 crisis passes & when the situation of my portfolio on the platform improves.