I was planning to build second house in Valencia for myself, but my lifestyle has changed and I currently prefer living in condominium, where I have outdoor and indoor swimming pool, gym, sauna, padel courts, 24×7 security and most important my kids have many friends to play in a safe environment. As I had a plot and a project ready, I started investigating what could I do with that. My options are:
Build to sell (not the best idea as the return on investment is low)
Build to rent – I could generate about 7-8% yield, but the demand might drop after the Ukraine wins the war – Also the loans to build the house are quite expensive now so the return is little
Sell the land
Build to rent on AirBNB – That idea came when I saw AirDNA data on townhouse in Burjassot
Burjassot townhouse rental:
3 Bedroom townhouse in Burjassot with a pool. This is the closest city to Valencia City. It has metro and tram line close by. In addition it is near Sorolla Congress Hall. Airdna says it has 60% occupancy at 410 euros on average per night.
I could definitely make a better quality house, just my location is not that close to the city/metro/tram. This is what AirDNA rentalizer gave as an estimate for my location:
Examples of Airbnb revenue in Valencia suburbs
5 bedroom Villa in Godella. 58% occupancy at 297 euros per night on average
#2 in Godella
Paterna / La Canada zone where I am considering building a 4 bedroom/4bathroom villa for AirBNB rentals. Interesting that the second villa is only listed on VRBO. The First villa that generates 89k / year (according to AirDNA) has 6 bedrooms and can accomodate 14 people. Charges 512 euros on average per night. Has a tennis court.
First, I think that renting is always better than buying. Especially in Spain, where you pay 10-12% buyers fee. So if the rent is 4% – so you can rent for 3 years just of the buyers fee. Secondly your family situation changes and you have more flexibility renting. And thirdly changing places is fun.
The reason why we have started building a house in Valencia, Spain is that we wanted a house next to kids school and there was nothing decent to rent. And the purchase prices seemed ridiculous of the houses that we liked.
I believe the lean P2P companies will eat the banks in the near future. I commited 5k investment in equity of Brickowner and now thinking about getting the equity in Housers
In Brickowner i invested as a client and in Housers i have just made a deposit, but didn’t choose any property yet. Even though they have 60 employees their customer support sucks and the company itself is not clear for me. Who are they and what they do? Whom the projects belong to? Who is the lemonway (deposit is made to them)? What is the purpose of 2 subsidiaries which they own at 64% and 70%?
2017 October raising
850k @ 44M
120k @ 2,5M
total raised 117k
Loans issued up to date *M
Lean and transparent company
Few properties for investors
Serving 3 small markets
Finally i decide to skip investing in Housers equity because there are too many unanswered question to which they hide “For confidentality issues” we can not answer you….
March 2016 – Property Partner raised a £15.9m Series B in March 2016. Valuation: £60m pre-money
⎝ Run rate of aprox. 2.4 million pounds monthly at the time of investment
Other relevant data
⎝ Actual run rate of 2.7 million pounds in August 2017
⎝ This is done with a leverage of almost 50% in most of their projects
⎝ Just one country
Time since company being incorporated
⎝ Funded in 28 May 2014 – more time to get to the 2-5 mn. mark
May 2017: Capital Round of €8 million at €59 million pre-money
⎝ Run rate at the time of the round of €3.4 m – €4m
⎝ Just one country
⎝ Funded in 2013 – more than to achieve the 2.5 mn. Mark
The House Crowd
⎝ Actual Run rate of 2.5 million pounds,
o In 20 July 2017 -The House Crowd has raised £15m in the past six months, taking its total fundraising to date to £50m.
⎝ Just one country
⎝ Funded in 29 December 2011 – more than to achieve the 2.5 mn. mark
⎝ Actual run rate of approx. 2.5 million euros
⎝ Presence in 1 country plus 2 additional (starting), 95% of investment comes only from Spain. First of the previous offering properties in 3 countries
⎝ Funded in 2015 (latest player – faster growth)- Less months to get to the €2.5 m. mark
⎝ Country with lower purchasing power (less consumption and investment per habitant)
EstateGuru raise on 2020 April at a 28M pre-money valutation on Seedrs