INVESTOR'S MANUAL. Manual del inversor 1

Transcription

1 INVESTOR'S MANUAL Manual del inversor 1

2 INDEX pg Introduction How and with what to save? Benefits of investing in real assets How is heritage created at Housers? What type of opportunities can I find at Housers? Benefits of investing at Housers versus others. A commission structure designed for you Sell Whenever you Want Current Yields Success Cases Photo: Housers Property Manual del inversor 22

3 Hello! Welcome to Housers, if you still don't know us we will explain in a few words who we are: Housers is the best investment and savings product to build a portfolio through the investment in real assets. Saving for your future is not an option, it is a necessity, and now with Housers you can do it in an easy, safe and transparent way. Invest and save through investing in tangible assets with other people who are already doing it, and get a good return in an investment that will always be linked to a physical good. Investing and saving through physical assets that you can see and touch will give you the possibility to enjoy monthly returns and to take advantage of the revaluation of assets, depending on where you invest. Now, thanks to InstantRent investing in buy-to-let opportunities will give you returns from the first moment. We have prepared this manual to guide your first steps in the world of online investment and to inform you about the reasons why it is so important that you start planning for the future. Discover what HOUSERS is and the reasons you should begin saving by investing in homes, commercial premises, in new-built... And many more things! Do not hesitate, put your savings to work. Housers has designed a simple, agile and safe process for you to start taking your first steps, the rest is up to you: Choose the opportunities that you like the most. Diversify as much as you want. Sell your investment in our Marketplace whenever you want, and everything is taken care of so you can get a good return. Build your future in a fast, simple and secure way. If you have any questions, comments or concerns, we will be more than happy to help and facilitate you with any information you may need at support@housers.com or by telephone at /+44 (20) If you've come this far, keep reading because we're sure you'll be pleasantly surprised. Best Regards, The Housers Team Manual del inversor 3

4 Introducción INTRODUCTION Saving is essential at the moment, but there are two major issues that prevent you from doing it on your own: Very low return on traditional investment and savings products. High volatility in financial markets that jeopardize income expectations. Recent studies 1 indicate that, in Spain, in just five years the real purchasing power of public pensions will fall by 6.3%, reaching a loss of 8.9% in 2025, so it will be absolutely necessary to build a savings plan for the future. (This data is extrapolable to other european countries). Currently, the situation for the saver is very complicated, mainly because the yields of traditional savings products do not allow the amounts needed to maintain an acceptable standard of living after retirement. The latest study from the IESE Business School: Yields of pension funds in Spain , indicates that the average yield in the last fifteen years was: 15-year government bonds: 5.27%. IBEX 35: 5.24%. Pension funds: 2.03%. Although, perhaps the biggest concern is that among the 335 pension funds with 15 years of history, only 3 outperformed the IBEX 35 and the 15-year government bonds, while 6 funds had a negative average return. As you can see, the scenario is troublesome and the traditional products of investment and saving are not the solution given the low yields they offer, the high volatility to which they are subject in some cases and, above all, the lack of transparency of many of them. But not to worry, at Housers we have found the solution to save and invest in a transparent, safe and simple way: a platform where you are the one that builds your own savings plan based on a real-estate investment that you can make however, whenever and wherever you want. (1) Study by Javier Díaz-Giménez (IESE Business School) and Julián Díaz-Saavedra (University of Granada) Manual Investors del Manual inversor 4

5 How to save and with what to save? THREE GOALS In recent years equity markets have been affected by strong volatility and, at the same time, fixed income (Bonds, deposits, etc.) are experiencing a time of low yields. In this situation both the investor and the saver have a problem because of the few alternatives that offer an attractive yield. ASSETS THAT ALLOW DIVERSIFICATION AND BACK UP THE INVESTMENT ASSETS WITH LOW VOLATILITY GETTING A STABLE INCOME With this scenario, three main objectives must be identified: Look for investment alternatives with less vulnerable volatility. PROMOTES DIVERSIFICATION REDUCE THE CORRELATION BETWEEN FIXED AND VARIABLE RENT REDUCE THE CORRELATION BETWEEN FIXED AND VARIABLE RENT Invest in physical assets to diversify risk and support investment. Find those investments where you can try to get a stable income. REAL-ESTATE INVESTMENT We believe that to meet these three points, real-estate investment is a great alternative because it: Encourages diversification. Improves yields with potential monthly and stable revenues. Protects the portfolio of the assets due to its low correlation with fixed and variable income. Manual Investors del Manual inversor 5

6 Before, accessing real-estate investment as a way of saving, and diversifying at the same time was only accessible to a few. Housers has democratized the market and opened the door of real-estate investment to all. Now you can access a type of asset with a fundamental characteristic: its value by itself and its correlation with financial assets. We select the best investment opportunities in the best areas of the big cities, so that you can enjoy a double yield: Receiving a potential monthly rental income The value growth of the properties over time. In addition, the risk inherent to the investment is reduced because there is always a property linked to it. With Housers you can diversify according to: The type of opportunity. You can invest in: Properties. Art. You can choose between: Receiving earnings every month through the BUY-TO-LET & DEVELOPMENT LOAN opportunities. Receive incredible earnings with a fixed time-frame through the BUY-TO-SELL opportunities. The types of real-estate: residential, commercial, or new-built properties. The country, with a choice between: Spain, Italy and Portugal. The city. THE MOST IMPORTANT: DIVERSIFY AS MUCH AS YOU CAN TO REDUCE THE RISK Manual Investors del Manual inversor 6

7 Benefits of investing in real assets The creation of a portfolio with different and well-diversified asset classes should be a fundamental investment objective for any investor with a long-term vision. By combining assets of different nature you can reduce risk and increase returns. The selection of assets must be based on dividing the investments between their different classes, which react in one way or another depending on the movements of the market. In this way, if one does not evolve as planned, your portfolio will be balanced by the good behavior of other investments. Stocks YIELD Art Bonds Real-Estate Investment Producer Goods Deposits and Saving Accounts RISK Manual Investors del Manual inversor 7

8 REAL ESTATE INVESTMENT The investment in real estate involves the purchase in classes of real estate assets that are expected to experience a revaluation over time and/or generate a monthly income. From 2002 to 2016, the price per square meter of housing * increased by 42.59%. This means that investors who decided to buy a house for 150,000 in 2002, could have obtained a gross profit of 63,885 if they had sold it at the end of last year. Leaving the revaluation of the asset aside, the real estate investment can offer a steady stream of monthly rental income. Handling data from the Bank of Spain, the annual gross average yield is already at 9.5% if we take into account the increase in the price of housing and capital gains from rent. INVESTMENT IN ART The investments in art are characterized, in general, by a low volatility since it is a relatively stable market. They are assets that overcome and improve the outcome of the cyclical crises that occur in the economy with much lower value drops than other types of assets. In fact, it is often the case that during times of crisis, these assets see their value increase due to the nature of their refuge value. Including this type of investment in a portfolio can be highly recommended as a diversification strategy. DEPOSITS AND SAVINGS ACCOUNTS With the deposits, the depositor has full liquidity and guarantee of the National Deposit Guarantee Funds. That is, if you want to withdraw your money, it will probably come with some penalty in the collection of interest. Normally the money is blocked for a medium to long period of time, but it is safe; As a result, this type of asset is located at the lower end of the risk. But this low level of risk is accompanied by low profitability. According to data from the Bank of Spain, up until April the average return on deposits between one and two years stands at 0.12%. This figure is well below the 1.5% rate of inflation with which the OECD expects Spain to dismiss in 2017, so that anyone who today asks for a deposit will be losing purchasing power. Manual Investors del Manual inversor 8

9 Having the money in the bank may seem like it will never suffer from capital loss, but with the expected inflation increase for the next 10 years (if the inflation rate matches the historical average of around 3%) the money is becoming less valuable and inflation will mean a constant loss of purchasing power. BONDS When you buy a bond, you are lending a specific amount of money to a public or private entity, in exchange for a fixed annual interest rate. This bonus will have an 'expiration date', that is, a termination date, in which the principal borrowed is reimbursed to the investor. One of the reasons this type of asset is appealing, is that they offer a fixed interest rate, that is, you know exactly how much you are going to get as long as the bond remains in the portfolio and there is no intermediate bankruptcy of the bond issuer. Volatility in the bond market is traditionally lower than that of other assets, which does not imply that they are risk-free: credit risk, price risk, etc. The higher the interest rate is for a bond, the riskier the investment. STOCKS By buying shares, you become a shareholder and you will receive the dividends that that company distributes. However, unlike bonuses, the dividend payment is a decision of the company. In the order of priority of credits, the bondholders recover their money before the shareholders. For all of these reasons, and due to their greater volatility, with equal quality of the issuer, stocks carry a greater risk than the bonds. PRODUCER GOODS One of the oldest forms of commerce. Investing in raw materials is a gamble, because they will raise the prices of crude oil, precious metals, animal derivatives or agricultural products (oil, gold, coffee...). Investing in commodities is often done through commodity futures contracts, which are extremely complicated contracts, even for expert investors. Raw materials are one of the most risky asset types, since they are very volatile. Manual Investors del Manual inversor 9

10 How your investment grows at Housers 1. INSTANTRENT. EARNINGS FROM THE MOMENT THAT YOU INVEST With InstantRent, from the moment you invest in the opportunities (where it is expressly indicated), you will begin to receive the estimated return. You can discover all the details of this feature here. 2. THANKS TO THE RENTS AND MONTHLY RETURNS In the case of real estate, you can receive in your Housers account the income from the rent or the payment of the loans month to month in fixed rate opportunities in proportion to the amount invested. 3. THANKS TO THE POSSIBLE RISE IN PRICES The possible increase in the value of the assets over time may increase the value of your investments, which will allow you to obtain a benefit if you decide to sell all or part of your investments in our Marketplace. Manual Investors del Manual inversor 10

11 What type of opportunities can I find at Housers? You can find four types of investment opportunities on our platform: BUY-TO-LET OPPORTUNITIES BUY-TO-SELL OPPORTUNITIES DEVELOPMENT LOAN OPPORTUNITIES ART OPPORTUNITIES Long-term investments (5-10 years), studied and analyzed so that little by little you build a pension plan based on real estate, at your own pace and always thinking about improving your standard of living by providing a new source of income thanks to the rentals. With these opportunities you can put your investment on sale and in the meantime each month you can earn the proportional part of the rent that corresponds to you as well as the revaluation of the property while you maintain your investment in your portfolio. These investments are designed to create savings and assets, where you have the power to decide when to sell through our marketplace. Buy-to-sell opportunities are focused on the rehabilitation and improvement of city centers through the integral reform of homes or commercial premises or the construction of new buildings. For this type of project, a total return is fixed, based on the estimated time period. In these cases there is no revaluation since the objective is to achieve the total return marked at the beginning through the added value of the construction or the reform that will be carried out. These are opportunities for months where the exit occurs when the property is sold, with no monthly income. In this way, your income from the sale will not depend on the supply and demand in the marketplace. These are medium-term opportunities (12-36 months) where a fixed-rate loan is granted to a real estate developer. In this case, revenues are generated from the first month based on the interest previously agreed with the developer after the evaluation of the entire project by the real estate, legal and financial departments. On the fixed-rate loans, it's not necessary to wait for the sale of the property, since the interest is received monthly until the developer amortizes the entire loan. They are, above all, opportunities focused on the construction of new projects, the creation of a new offer to respond to existing demand and the creation of new spaces in the center of large cities. Investment opportunities that provide the chance to invest in a work of art. They are investments in the medium /long term (2-7 years) where the exit occurs once the objective revaluation has been reached, fixed at the beginning of the project. Investment in art allows greater diversification and, therefore, a significant reduction in risk, since it is assets that even in times of crisis can experience price increases, thanks to the lower volatility of its entire market. In addition, when you invest in art, you can sell your investment whenever you want. More Information More Information More Information Manual Investors del Manual inversor 11

12 Benefits of Investing at Housers versus others EASY SIGN-UP In 3 steps you can become an authentic Real Estate investor without any cost. 1. Complete the sign-up forms. 2. Upload a picture of your passport or national Identification card, in full color, clear, legible and in the case of the card both sides, via "My Data" in your Housers account. 3. Transfer funds to your account, study the available opportunities, and choose the ones you like the most and invest whatever quantity you choose. As easy and fast as that! A SAFE PROCESS Your money will always be safe and under your name in a segregated account at no cost to you. Housers works together with an independent payment entity to ensure that your money is always safe in your Housers account. Even when you invest this money will remain in your account. FREE INVESTMENTS Investing at Housers is free! We are transparent, the creation of your account, its maintenance, the movements that you make, your investments and the income of the benefits that correspond to you, do not have any type of cost for you. CONTINUOUS AND REAL-TIME MONITORING OF YOUR INVESTMENTS Investing through Housers you will have access to one of the best control panels of all crowdfunding platforms in Europe. We offer you detailed information of your financial situation in Housers, investment and income ratio and all your investments broken down by each of the opportunities where you have invested. Manual Investors del Manual inversor 12

13 Comparison of Classic Model of commissions VS. Housers CLASSIC MODEL 100 INVESTMENT AVERAGE ANNUAL NET YIELD UNKNOWN INVESTOR BENEFIT UNKNOWN 100 INVESTMENT *6,38 % AVERAGE ANNUAL NET YIELD 4,06 INVESTOR BENEFIT A fee structure designed for you We have created a fee structure completely aligned with our investors. The fundamental difference with respect to other fee structures is that all the investment models charge the same to the investor regardless of whether they earn or lose money, but we do not, if you do not have benefits, HOUSERS does not charge you anything. Housers fees are based on benefits and are more competitive than other platforms and other financial investment and saving products. The fees of these products vary between 1 and 3% (that is why 1.5% has been selected as an average) and is applied to your entire portfolio. Housers, on the other hand, presents a fair and more transparent model, we charge a 10% fee over the profit obtained rather than on the portfolio of our investors. Although the percentage seems high, the basis for calculating it is really much smaller than in the other products. 1,5% FEE OVER "PORTFOLIO" MEANING, FROM THE MOMENT YOU INVEST 1,50 TOTAL FEE 10 % FEE 0,64 TOTAL FEE WE STAND BY YOUR SIDE. IF YOU DON'T RECEIVE EARNINGS, NEITHER DO WE *Real annual average yield of saving, investment and fixed rate projects published in Housers as of 11/10/2017. Past performance does not guarantee future returns. Manual Investors del Manual inversor 13

14 Sell whenever you want The liquidity of the real estate market is now history. Through the Marketplace, Housers facilitates communication between investors so they can carry out the necessary steps to sell their investments. Now, whenever there is a counterpart, you can sell your investment whenever you want and at the price you want, without waiting, and in an easy and safe way. Through different statistical and BIG DATA tools, we determine if the loan qualifies for our marketplace. With this reference you can set the sales price you want and if there are interested buyers, they will buy your investment at the price you have set. Manual Investors del Manual inversor 14

15 Buy-to-let Yields KPIs comparison between estimated and realized. Key Performance Indicators (KPIs) NUMBER OF PROJECTS CLOSED PROJECTS ACCUMULATED INVESTMENT AVERAGE PROJECTED ANNUAL RENTAL YIELD AVERAGE PAID-OUT ANNUAL RENTAL YIELD AVERAGE VALUE INCREASE INCOME PAID AND CAPTIAL REPAID Our numbers are the best way to show you the commitment with our investors ,97 %** 3,91 %** 6,01 % ,46 *Data from December 2017 RENTAL INCOME VOLUME OF OPERATIONS IN THE MARKETPLACE , ,97 Buy-to-sell Yields KPIs comparison between estimated and realized. NUMBER OF PROJECTS CLOSED PROJECTS ACCUMULATED INVESTMENT AVERAGE PROJECTED ANNUAL YIELD (IRR*) ACHIEVED AVERAGE ANNUAL YIELD (IRR*) INCOME PAID AND CAPTIAL REPAID ,40 % 5,49 % ,25 Development Loan Yields KPIs comparison between estimated and realized. NUMBER OF PROJECTS CLOSED PROJECTS ACCUMULATED INVESTMENT AVERAGE PROJECTED ANNUAL RENTAL YIELD AVERAGE PAID-OUT ANNUAL RENTAL YIELD INCOME PAID AND CAPTIAL REPAID ,77 % 9,77 % ,29 Equity Yields (previously buy-to-let) KPIs comparison between estimated and realized. NUMBER OF PROJECTS CLOSED PROJECTS ACCUMULATED INVESTMENT AVERAGE PROJECTED ANNUAL YIELD (IRR*) ACHIEVED AVERAGE ANNUAL YIELD (IRR*) INCOME PAID AND CAPTIAL REPAID ,48 % 12,41 % ,5 * IRR (annual internal rate of return of the investor): this financial concept serves to evaluate the yield of the project and compare it with other types of investment in the market. ** All the data referring to returns are calculated using a weighted average, depending on the financing objective of each project and its corresponding yield. To know more about the content of each value, you can consult it here: Manual Investors del Manual inversor 15

16 Success Cases So far we have returned more than 3 million to our investors. Interests paid and capital returned to investors You can consult the rest of the graphs here: Manual Investors del Manual inversor 16

17 EQUITY real irr : 11,39% expected irr : 9,81% Success Cases accumulated net yield: 17,0% Here we show you some of the completed opportunities that have already gone through the full cycle and where their investors have received their benefits and their capital initially invested. ELOY GONZALO -Madrid- SANTA ANA -Madrid- EQUITY real irr : 10,71% expected irr : 9,59% accumulated net yield: 17,69% Manual Investors del Manual inversor 17

18 MALASAÑA EQUITY real irr : 11,26% expected irr : 8,28% Success Cases accumulated net yield: 12,24% CHAMBERÍ -Madrid- -Madrid- EQUITY real irr : 16,27% expected irr : 10,60% accumulated net yield: 24,47% Manual Investors del Manual inversor 18

19 COSTA RICA -Madrid- Success Cases BUY-TO-SELL real irr : 5,49% expected irr : 5,74% accumulated net yield: 7,28% * IRR (annual internal rate of return of the investor): this financial concept serves to evaluate the yield of the project and compare it with other types of investment in the market. The Accumulated Net Yield represents the sum of the rent dividends and the sale. Past performances do not guarantee future returns. Manual Investors del Manual inversor 19

20 / SIGN UP NOW Start building your portfolio with Housers, invest and diversify. If you have any questions please contact us at or +44 (20) or

21 Madrid Valencia Milán Lisboa Alcalá, 44. 6º izq Madrid / España + 44 (20) info.es@housers.com Housers does not provide financial advice and nothing in this document should be construed as investment or financial advice. The information that appears in this article is for general information purposes only and does not constitute specific advice. Neither is it a request, offer or recommendation to invest. If you have any doubts about the suitability of an investment, you should seek independent financial advice. The value of investments can go down or up. Past performance is not necessarily indicative of future profitability. There are risks associated with an investment in any of the products that appear on our website.