WHAT IS HOUSERS.COM?
ARE THERE RISKS TO KNOW OR ALTERNATIVES?
MY MIXED OPINION ABOUT HOUSERS PUSHED ME NOT TO INVEST YET
I’VE STUDIED THE PRODUCT IN DEPTH, SPOKE WITH THE TEAM BUT I REMAIN SOMEWHAT SKEPTICAL
HOUSERS.COM RISKS ARE CLEARLY STATED, NO SCAM, BUT I BELIEVE THERE CAN BE MORE CONVENIENT ALTERNATIVES ONLINE
❌ No Housers promo code here
In this comment on Housers you will not find the promotional code.
If you still need a safe link to Housers use the one on this page.
Housers bad review? Why?
This Housers opinion isn’t only negative, because I do find some aspects that I like a lot.
I like this “democratization” of the online investments, I approve it, and Housers is a pioneer of a beneficial fin-tech revolution.
Being able to invest in real estate starting from 50€ is absolutely interesting and also brings ordinary people closer to the convenient opportunity to invest in autonomy.
Housers.com says it is “the first pan-European platform for investment in tangible assets”, the dream of investing in something “real” is now possible through the web.
What do you get on housers?
Housers, in my opinion, is interesting, but what you get by investing, is a stake in a company that invests in a specific property or in several projects, You don’t own a house or a fraction of it.
The 4 ways of investing on housers
This was until some time ago. Over time, Housers offer has expanded, to date, there are four different types of investment:
Buy to let
Buy to sell
Art (no longer available 2019)
2020 Update: Today there are mainly “development loans” on Housers that serve a fixed interest from 5% to 10% approximately.
Thia is absolutely a good thing for the investors since statistically this kind of loans is the less problematic on Housers.
Buy to let
When we talk about “Buy to let”, it is basically about lending money to a company that rents or sells properties. So you can earn both from the rents paid and from the revaluation of the property. You can virtually sell your share at any time. I don’t know how easy and quick the process can be, but I don’t believe there is already such a liquid market by now.
Buy to sell
The “Buy to sell” mode, on the other hand, is aimed at financing projects for the renovation or construction of new buildings with (or without) the aim of selling them. No rent, therefore, the amount invested and the interest will return to our disposal all together if the sale ends up successfully.
Development loans ✔️
“Development loan” is the third option available. It’s the option I like the most. Clean and transparent. We lend money for real estate projects under construction. The payment is monthly and starts immediately, there are no rentals yields and the capital borrowed is fully returned at the end of the investment period.
Art (?) deals
The great (old) news on Housers is the chance to invest in “art” with Housers. It is called a participative loan, it has a stated time horizon of 2/7 years and during this period the works are evaluated once a year by experts in the field. You are free to sell before you reach your goal, as long as you find someone willing to buy your stake.
To invest in the art market have always been a very difficult task especially for “non-experts”. (No longer available)
What is Housers.com?
Housers is one of the most popular real estate crowdfunding platforms in Europe. It was funded in 2016 in Spain. Today it has 116.000 users and a it has lended 108 million euros so far. Housers.com average yield is 9%.
I find that Housers currently offers few projects, and returns that are “not to write home about”.
Benefits of Housers.com?
- Minimum investment is only 50€
- It is actually a way to start investing in real estate
- Properties are geographically diversified
- Investment is rather hands-free
Is housers.com 100% safe?
Well, nothing is safe 100%, even less investing and even less P2P and RE investing.
Statistics say that Housers is delivering its promise but the main issue for investors are late loans. This affects performance even more than the hated 10% performance fee.
It is not always clear how the investments are property backed and if they are.
The worst thing on Housers.com?
Definitely the 10% performance fee and the late loans.
Housers team. Who is behind Housers,com?
The two founders are Spanish and still today their headquarters are in Madrid.
Here are the LinkedIn profiles of the founder and CEO:
Alvaro Luna (Founder @Housers.com)
Juan Balcazar (CEO @Housers.com)
Housers on Trustpilot reviews?
Unfortunately many reviews are bad and people complain about the missing early exit option and the late loans.
In fact there is a kind of secondary market.
Reviews on websites like Trustpilot are not written by experts, so take it for what they are.
Housers how it works
All projects have an easy to read interface where the most important details are explained.
In the example above I can read that:
The annual yield is 9%
The location is in Spain
There are 37 days left for funding
210 investors have already invested
Super-important is the yellow card with an A inside that is indicating me that this is an “A” rated deal (which means rather safe compared to the rest).
What is EarlyYield on Housers.com?
I will explain you the housers EarlyYield in a second:
Imagine you invest in a project
The project takes some weeks to be fully funded
What happen to your money in the meantime?
You normally earn nothing.
With the introduction of the EarlyYield on some specific project investors can earn 10% for the period the project is waiting to be funded.
Here is a wonderful image to explain it:
What are “Flex” contracts on Housers.com?
This seems to be a way to do some make up to the statistics (like other platforms do) and also serve a smell extra-return to the investors.
This is the video where it is clearly explained what Flex contracts are:
Alternatives to Housers.com
I am invested in some real estate crowdfunding because the idea behind it is just fabulous for me.
because investing in real estate is definitely a good idea BUT it comes with a lot of problems in real life. The main issue is to finance the operation. Most real estate projects for beginners start in the bank where they ask for credit to finance the purchase. Normally it is very difficult to end up with a positive return after the interests on the mortgage, the tax, the expenses, etc.
Investing through online crowdfunding is just perfect because I don’t have to worry about dozens of problems and the starting investment can be very limited.
Moreover I can diversificate on many loans in many countries. Doing so i will lower my risk.
I like a lot EstateGuru for their transparency and their size. EG is big (170 M€) end growing (12% yield).
Crowdestate is another giant (83 M€) in the European real estate crowdfunding business. It is a nice tool with high yields (up to 18%).
I recently wrote an investor review about EstateGuru.
💅🏼Trendy or profitable?
These days “crowd” and “social” are trendy words, but when it comes to online investing I don’t look too much what is trending and what is not (a part from the stock market). So what I like the most as an online investment now, is definitely peer to peer lending.
I believe that in terms of diversification, liquidity and, above all, returns, Peer to Peer lending is still much higher and “tested”, because it has existed for many years.
Peer to peer lending tools allow me to achieve a good fragmentation, spreading my risk on many (even thousands) loans. It is obviously an effective way of reducing risk and real estate crowdfunding is limited it this aspect.
With P2P I have more data on which to develop strategies and many numbers, unlike real estate where we obviously talk about future price predictions of the properties . The real estate market is very attractive, but by now I overweight the “certainty” of loans while building my online potfolio.
For those who have a passion for real estate but do not want to buy a property, there are also REITs. These are real estate funds specialised in RE, that are liquid and accessible.
Conclusions on Housers
Going back to Housers, there is to say that the website is fabulous, modern, and eye-catching, the logo is brilliant. The information accompanying the single projects is detailed, and the photos are colourful and bright. The technology behind it must be leading edge.
At the end of the description of each Housers’ project (I appreciated the honesty) we are informed that the capital is at total risk of loss, the liquidity is not guaranteed and that the projects are not regulated by any government institution.
The Housers’ motto is one of the most effective we’ve ever seen: “Get the most out of your money”. Let us hope that this is the case.
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