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finadmin · 6 years ago

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Why you should not invest in Housers (fintech-reviews review)

Less than 3% of the money invested through Housers, which announces investment opportunities in Spain and Italy comes out of the national pockets. "Anyone, anywhere in the world, can invest in Housers," notes Tavora.

For savers, the process seems simple: Housers announces opportunities (for example, an apartment in Madrid, Spain), interested investors load their account with money and, after accepting documentation, lend capital to the project's promoter. When a few dozen investors lend enough, the developer advances the business plan (buys the property and renews it, for example), and in return pays interest, usually indexed to rents. In most cases, with the end of the loan, the developer sells the property, pays a final interest and returns the capital to the investors.

In reality, the process is not so simple: there are several layers of costs and actors - platform, developers, real estate groups, investors, independent appraisers, tax authorities and payment institutions - who take no interest in Housers solutions.

Liquidity at Housers may be higher than direct investment in real estate or real estate investment funds (where repayment takes between six months and almost a year and a half, as we revealed last February), but it is not immediate. For example, those who invested in the San Gallo project, an apartment in the center of Florence, Italy, for rental purposes, were unable to put their bonds up for sale within a month of completing the financing operation.

Profitability is not so high

Assuming the business plan presented at the San Gallo home, which is very similar to other savings projects, net effective profitability would be 3.42% per year. This return assumes a tax of 28% on receipts and Housers' commission of 10% on all gains, plus Spanish VAT on that charge.

But it is not only: the projection assumes the receipt of interest in the month following the financing, which, at the outset, would not be realistic considering that there would still be a reform (where the promoter expected to spend 6,600 euros) and decoration (plus 12,597 , 11 euros). The apartment in Rua Maria Pia, in Lisbon, the first proposed business, took seven months from the financing to the entrance of tenants, despite showing the seal "InstantRent", which means that the investor "receives the estimated profitability from the moment you invest ".

In other loan modalities, the returns announced on Housers projects may be higher, but they are also more risky. "Fixed rates have the highest risk, because there is nothing, everything will be built," explains Távora. In June, a fixed-rate solution - a financing not dependent on the exploration of the property - passed through the platform, which promised a return of 14.25% to 18 months for the construction of a building in Madrid. In practice, assuming a 28% taxation and the Housers commission, plus VAT, the annual net profitability would be 5.84% per year.

Housers can win more with less risk

Believing that the forecasts of the San Gallo project will materialize in the next five years, but that the sale price will be equivalent to the amount financed (which would represent a 31% appreciation of the property in relation to the cost of acquisition and remodeling), then Housers would generate at least 50,000 euros, at least, directly from this operation, more than the net income of all investors.

If all forecasts of San Gallo's business plan materialize, including the sale price, Housers would earn at least 52,630 euros, while investors, who jointly lent 379 thousand euros, would receive approximately 64,986 euros, assuming a tax of 28% and Housers' commission of 10% on earnings, plus Spanish VAT.

While commission charges on projects are close to net returns for investors, the business risk to Housers is lower. For example, in case of fraud by a developer, Housers would only fail to receive commissions on investor interest, despite the potential damage to the platform's reputation. "Legally, we would not be at fault [if the prosecutor deceived the investors], we only bring these two agents into contact, [but] from the point of view of market perception, yes, our business would fall," calculates Távora.

Taxation on interest is not simple

Although we have calculated the net yields assuming a tax rate of 15% on interest on the loans granted, it is not certain that this is the fiscal effort of the investors in Housers. Since all the promoters are Spanish, the interest received always comes from Spain and is taxed at the Spanish rate. "The retention is 19%," says João Távora, which is lower than if the payment had been made by a company, which would be 15%.

This is it for this article, good investments!

fintech-reviews team

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