One of the most stable types of investment offered by our marketplace. It’s like you own a small part of the property and with EvoEstate can have small bits of different places across all Europe.
With the lowest risk, you can expect 3-6% of annual returns as well as capital appreciation with time. Depending on location capital appreciation may increase between 2-4% annually. If you keep the property until the duration of a project, it can yield a total of 10% annual returns. If you are checking short -term rentals in countries like Spain with the low season in winter, check annualized results in order to see expected rental yield.
With this investment type capital growth is paid only when property is sold. So keeping property to its maturity or acquiring it close to the maturity date through the Secondary market leads you to earn capital growth.
Investing in fixed-interest loans you provide financing for real estate development companies like banks do. This investment type has underlying assets - real estate collateral, which in case of default could potentially protect your investment. This particular investment type based on the risk level ranks second on our marketplace. Annual interest rates range between 8-13% Considering this type of investment, we encourage to read the article about LTV trap.
Choosing investment into equity you take the highest risks among 3 types of investment that are being offered on the marketplace. At the same time, your earnings are expected to be between 14-30% annually. This investment type makes you a business co-owner, which means you participate in both gains and losses of the project. With the highest risk, you could even potentially lose a full principal investment. EvoEstate offers several types of equity projects. With development equity projects your expected returns are much greater, and they work similarly to development loans, the key differences are that the investment could be leveraged and it is not secured. With auction products property was purchased in an auction for a price below the market and are considered lower risk in comparison to equity development projects.