Real estate crowdfunding platforms from Europe – Compare the opportunities

Real estate crowdfunding platforms from Europe

The real estate crowdfunding platforms below is for me some trustworthy and good investment opportunities. Read my real estate crowdfunding review with more about returns, risks, pros, and cons. 

Platform
Expected interest rate

Buyback guarantee

Loans types

Minimum investment

Started



Start invest

My review


On average: 20.54%

No
But loans are secured with a first-rank mortgage (physical security) or personal guarantees

Real estate, corporate finance, and mortgage loans

€ 100

2014



Start invest

My review


On average: 12.29%

No
But all the loans are backed with a mortgage

Mortgage

€ 50

2014



Start invest

My review


13-18%

No
But there are various securities to protect your investment

Real estate, business, transport, and startup projects

€ 100

2018

Where should I make my first investment?


I don’t have a preferred real estate crowdfunding platform. Personally, however, I would choose Estateguru, because they have a promotion for new investors and have a good reputation.

You get 0.5% extra in return on your first investment when you sign up from my blog 🙂

Here is a quick overview of their real estate crowdfunding marketplace:

estateguru platform


You must be 18 years to invest at Estateguru and it’s easiest if you have a bank account in Europe. You can transfer money to the platform account from your bank account. 


💡 Furthermore you can read my full 
review of Estateguru. I update my review ongoing with news, returns, strategy, risks etc.

 

What is real estate crowdfunding?


Crowdfunding, in general, is a way to raise money for a project.

They collect contributions (money) from a larger group of contributors (investors) typically via a crowdfunding platform online. The crowdfunding platforms that I recommend are within real estate.

They are focused on raising money for big real estate projects while providing a good return or rental yield to investors.

You can also raise money for widely different projects such as movies, records, books, computer games, capital for entrepreneurs or community-friendly projects. However, it’s a completely different category (more focused on rewards, gifts, and donations).


Real estate crowdfunding Europe platforms is a fast-growing investment opportunity for private individual investors. 


There is often a greater return  within real estate crowdfunding if you compare to P2P lending
.

However, the risk is also greater as there is no direct buyback guarantee. It is most often covered with physical security (building, house etc.).

 

The real estate market in Europe


Even though several European nations are recovering from financial meltdown, international investors are still bullish about the European real estate market.


The crowdfunding approach (except in the UK) is driving further growth in several European property markets.

The UK is experiencing a post-Brexit uncertainty at the moment.

 

Is the European real estate market still attractive?

 

Yes The answer is yes because the demand for decent housing still is very high.

The real estate investors must work around the clock to satisfy the increasing thirst for affordable and decent houses.



Importantly, I think the investors can get a good return on their real estate investments in the current political and socioeconomic climate.

The main issue with European real estate is that both commercial and residential is very quite expensive. 

Investors who will invest in markets like Spain or Greece have a better chance to make capital gains if the economies continue to grow (in my opinion).

 

Shifting focus from country to city

 

In 2016-17 European capitals like Paris and London were perceived as really good places to invest, but in 2018 and 2019 Germany is considered as one of the best countries to invest.

Major cities like Hamburg, Frankfurt, Berlin, and Munich are making as the top ten lists of best places to invest in real estate.

 

Investors have narrowed the focus to the cities rather than countries.

 

In addition, Nordic locations like Stockholm, Oslo, and Helsinki are gaining favor from real estate investors.

 

Real estate crowdfunding vs. P2P Lending


It may seem alike but real estate crowdfunding and P2P lending have their differences. 

In real estate crowdfunding projects you can sometimes have a shared (joint) ownership of a real estate. This is not an option in P2P lending because it’s only focused on a loan agreement.

 

Real estate crowdfunding requires more of your time to understand every single project. In P2P lending you can just set up an auto-invest and it’s will do the work just fine.

There are no buyback guarantees as with P2P lending platforms and the risk is also higher (in my opinion). 

You often get a higher return than you can get at P2P lending. However, most projects have some kind of security in for example property.


Typical P2P loans are:

  • Mortgage
  • Car loans
  • Invoice financing
  • Business loans
  • Consumer loans
  • Personal loans
  • Agricultural loans
  • Development project loans


Typical real estate crowdfunding projects are:

  • Rental properties
  • Corporate finance
  • Mortgage
  • Real estate development projects

 

Advantages and disadvantages 


Many people do not fully understand why real estate crowdfunding is a popular investment. The truth is that crowdfunding has made real estate investing easier and more accessible. Many investors join this great investment opportunity with great experiences. 


I’m very positive about real estate crowdfunding in Europe and I think it’s a great investment opportunity.

Below I have listed some pros and cons to consider.

Advantages

 

  • Higher yield than most investments
  • Real estate is a great asset class for diversification
  • Easy to handle and a wide variety of deals
  • Real estate in Europe is a regulated market

 

Accessible to real estate investment


Traditionally, to access the most secure low-risk real estate funding in the world’s best currencies, individuals are expected to have considerable amounts of capital available.

The good news is that crowdfunding has slashed such restrictions hence making it possible for any person to invest online.

One of the main purposes of crowdfunding platforms is to open real estate investing to the public.

 

Geographic diversification


You must know that all real estate isn’t the same, and all real estate markets aren’t the same either.


Real estate crowdfunding gives an opportunity to vary your risk profile by investing in more markets.


Do you want to invest  EUR 10.000 in 15 different markets across the country?
Good news is that real estate crowdfunding can make it happen without any stress. Though real estate crowdfunding, an investor can expand his or her horizons.

 

Disadvantages

  • Require an understanding of the projects (research)
  • No directly buyback guarantee and not secured by any government 
  • More time involved
  • The asset class haven’t been around for a long time


Majority of real estate crowdfunding platforms target individual investors who are not investors in commercial real estate investing.

Even those individual understands commercial estate investing will mostly lack local market knowledge to make the property level decisions.

For successful real estate investment, the investor must establish and specialize in a given region or city to manage to identify the better deals.


Real estate crowdfunding review


You can follow my personal experiences with crowdfunding here on my blog. I only write about investment opportunities that I can recommend.

 

Crowdestate review

Estateguru review

Crowdestor review

 

Frequently asked questions


Is there any promotion code or cash back program?


Yes. You can get 0.5% extra in return on your first investment at 
Estateguru.
The money will be paid within a very short time on your platform account.

Can anyone create an account on the various real estate crowdfunding sites?


Yes if you are 18 years or older. Some platforms also require a picture of your personal identification document (ID).  This can be a government-issued ID or scan of your passport.

What are the real estate crowdfunding returns?


It is varied according to projects. For example at Crowdestate, it is an average of 20.54% for all their projects. It is a very reasonable return.

 

💡 If you have any questions about real estate crowdfunding Europe platforms or in general, feel free to comment below 🙂

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2 Responses

  1. Cindy says:

    Very interesting.

    Especially the pretty good returns that the various real estate crowdlending platforms offer. What are your plans to invest in these platforms?

    Best regards sincerely
    Cindy

    • Peter Michael says:

      Thank you, Cindy.

      Yes, it is a really interesting investment opportunity with the fairly high returns. Especially since you don’t have to administer properties and take care of rental.

      I expect to invest in 2019 in several of the real estate crowdlending platforms. The only thing that keeps me back is that I want my emergency fund to be done first. One step at the time 😉

      Thank you for your comment.

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