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Investment in real estate participatory companies is consolidated in Spain

The ways in which people invest have changed over time. Thanks to crowdfunding, the barriers that existed have been blurred until they practically cease to exist. It is the case of real estatewhose financing could only be accessed through a loan or a grant.

The arrival of the crowdfunding platforms (PFPs) has made it possible to democratize access to the high yields of the institutional real estate market, And for this, technology is key.

According to Rafael Merry del Val, president of wecity.io, a crowdfunding platform, “technology is democratizing the investment options of small investors. This platform is quick to use, they have a simple interface that shows the necessary information for the investor so that at a glance they can decide whether or not the investment suits what they are really looking for”.

Therefore, traditional financial intermediation begins to be dispensed with and project promoters who request funds through the issuance of securities and social participations are put in contact with traditional investors or fund providers who are looking for a yield and return on investment for their money. .

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Keys to the success of real estate crowdfunding

This type of financing offers a series of tangible short-term advantages for the sector, such as:

  1. Regulatory framework: Investing in platforms authorized by the Securities Market Commission and by the Bank of Spain, as in the case of wecity.io, gives the investor an added framework of trust. Both institutions supervise the platform but not the opportunities, a supervision task that falls to the platform’s team of specialists.
  2. Access to investors from 500 euros: Access is provided to investors from 500 euros, in addition to giving them the opportunity to choose the projects that best suit their investment strategy as well as their future plans.
  3. Higher profitability in less time: The benefits can be short, medium and long term, depending on the investor’s strategy, which allows him to obtain returns from 6 to 24 months. Rafael Merry del Val, president of wecity.io, assures that “Being able to obtain a profit in a shorter period of time than usual is attractive to all types of investors, whether or not they are experts.”
  4. Different plans and types of adaptable profitability: wecity.io allows different types of return for our money. Some projects, on local buildings, allow a rent-type return, while other residential buildings can allow obtaining the benefit as capital gains. The investor is the total owner of his profitability plans.
  5. Tax advantages and less paperwork. Investments in projects with participatory financing are characterized by their tax simplification. Those who invest in the purchase of a home in a conventional way, will have to face the following taxes.
  6. Diversification: Investing means taking risks, but in the case of real estate crowdfunding, these are minimized due to the possibility of diversifying the investment and because companies like wecity.io carry out a pre-selection of projects by a committee of experts with more than 50 years of experience. accumulated in the real estate sector. In this way, investors can rest assured that the projects are stable and with minimized risks. Furthermore, in the case of wecity.io, as recognized by Antonio Mañas, CEO of wecity.io: “We carry out a study of the promoter and the properties, visiting them and doing a Due Diligence of the opportunity supported by market valuations”.

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