Spain has traditionally invested in real estate, a driving sector of our economy. In the past, these investments were aimed at high-net-worth individuals, professionals, or qualified investors and were not accessible to small investors.
Thanks to crowdfunding, an increasing number of investors are turning to such projects to generate additional income to their income. Therefore, anyone interested in this sector can now invest small amounts of money. At Fellow Funders, investors can start investing as little as 1,000 euros and obtain high returns compared to the risk assumed.
This investment model facilitates and democratizes access to real estate without needing to buy a home. In the past, those who wished to invest in real estate in our country had to buy a home, implying a higher risk since the required amount is considerably higher and is concentrated in a single investment.
Nowadays, the portfolio is diversified into smaller investments, resulting in lower investment risks and stabilized returns.
Real estate projects are one of the most popular alternatives thanks to the opportunities and facilities they offer.
Here are some of the reasons to invest in real estate:
- Reduction of liquidity levels: the current high level of inflation leads to a loss of purchasing power due to the depreciation of money. With these high inflation levels, we need to invest in assets that can quickly and nimbly reflect them. Investments with real estate underlying are, as a rule of thumb, the investments that first reflect the effect and counteract it.
- Capital preservation: real estate assets may suffer price fluctuations in the short term. However, these investments usually allow for recovery of the investment made in the most pessimistic scenario and in the medium/long term, provided that the price is adequate.
- Low levels of leverage: it is advisable to have an adequate level of leverage in all investments, including those made in real estate assets, since it increases the return on capital. However, we must pay attention due to the liquidity tensions that can be generated and the cost of money. Our projects have optimal leverage percentages.
- Investment liquidity: liquidity windows are one of the most critical aspects for investors. The investments offered on our platform usually have a short/medium-term time horizon, allowing for quick rotations of the invested capital.
- Financial and legal due diligence: we must consider the viability of projects, including real estate projects. It is essential to perform in-depth due diligence on the project to determine the assumed risks as investors and whether the potential returns cover the risk premium. At Fellow Funders, we will perform this analysis for you.
Spain is positioned as the third and fourth most attractive investment destination for the principal foreign capitals, whether pan-European, Anglo-Saxon, or LATAM.
The attractiveness of our country is reinforced by a stable and favorable legal framework. Spain offers three core locations for investment: Madrid, Barcelona, and Malaga, and secondary locations such as Bilbao, Valencia, and Alicante.
We should emphasize the higher yields offered by the real estate sector compared to traditional banking products and the high price range of real estate products in Spain. Finally, the Omnibus Law has launched a special plan to facilitate access to housing for people under 35 years of age, making it even easier to invest in real estate.
