In order to diversify my real estate portfolio, I regularly invest on new platforms that I then review so you too can invest on them & feel confident in doing so.
In this article, I will review the real estate crowdfunding platform Rendity, which is located in Vienna, Austria. I really wanted to try it out as this is the first real estate crowdfunding platform I heard about in this part of Europe. I'll tell you what returns you can expect from the platform, tell if it's safe to invest there, and show you how to invest on the platform. As usual, I'll invest on the platform with my own money, and share with you my latest results with Rendity. Let's start!
Rendity is a real estate crowdfunding platform based in Vienna, that allows people to invest in high-quality real estate projects in Austria & Germany. There were not so many well-built platforms at the moment I wrote this review in this part of Europe, which makes this platform really interesting.
At the time I wrote this review, there were two types of deals available on the platform: development projects (called Rendity Growth), and more classical buy-to-rent opportunities (called Rendity Income):
In general, the platform really focuses on newer buildings & new development projects, and they carefully select each project they put on the platform by having it screened & assessed by external advisors, meaning you will only find high-quality projects on the platform.
As for all the platform I try out & review, I also got in touch with their support team to see if they responded quickly & were helpful. I had a very nice answer to my question (about how to start investing) in less than 24 hours, so that's a very good point for Rendity.
As I mentioned before, there are two types of projects available on Rendity. The first type, development projects, are basically like loans that pay interests yearly, and with the principal payment that is given back at the end of the project (usually 24 months). Those projects have interests rates around 7%.
The second type, buy-to-rent projects, are more like the classical real estate crowdfunding type: you invest in a property with other investors, and you get distributions of the rent (here every 3 months). Those projects usually have interests rates around 5%. Note that most projects of this type on Rendity are already rented, meaning less risk as an investor & also immediate distributions.
Note that in both cases, returns are lower compared to what you can expect from other countries, for example in the Baltic states. This is due to the local real estate market in Austria & Germany, where I know from experience that the returns are usually in this range of 4.5 - 5% for rentals. However, I don't see that as a problem as Rendity allows me to diversify my portfolio into two new countries, so I see it as a way to reduce the overall level of risk of my portfolio while investing in high-quality real estate projects.
First, as I already mentioned before, Rendity has a very strict process to select projects that offer on their platform, using external advisors to carefully review all the projects. They also offer mostly investments in brand new buildings, meaning fewer risks & surprises as well for the investors.
Then, they also offer a really transparent project rating system, from A to E, to assess the level of risk of each project. As with all crowdlending platforms, I really recommend sticking with A & B rated projects to again reduce your exposure to risk on Rendity.
Finally, always make sure to diversify in as many projects as possible on every platform you invest in, which immediately reduces the level of risk you are taking on this platform.
Rendity also offers a very cool feature that is active when you invest in a new project: instant interest. This means that when you invest in a new project, you will get interests on your invested money while the project is still in the funding phase. This avoids the pain of having your money stuck for nothing in case a project doesn't reach its funding goals.
They also offer a nice 25 Euros signup bonus when you make your first investment, so that's really nice to get started on Rendity.
As for all the platforms I review, I invested with my own money, starting with 1000 Euros on this platform. For the story, I usually prefer to start investing with less money, but when I first started investing on the platform the minimum investment amount was of 1000 Euros, however, since then they reduced it to 500 Euros.
Before investing, you will need to open an account with Rendity (this is done in less than 5 minutes) and then deposit some money on your account. This is really easy to do, I chose to do it by credit card as it's instant but you can also do it via a more classical bank transfer.
Investing in a project is really easy as well: just click on the project you are interested in, and this window with all the details about the project will open:
After that, simply enter the amount of you want to invest in this project, and click on the Invest now button. After a confirmation step, the project will be added immediately to your account.
At the start, I invested in just one development project (because of the 1000 Euros minimum investment that was still present when I started investing). You can find the details of the project below:
I am happy to say that everything went perfectly fine with this project, and that I received exactly the expected amounts, even during the heart of the COVID crisis. So I can can I am really satisfied with my results with Rendity so far.
I will of course update this section of this review as soon as I get more results from Rendity.