Regular reviewing and sticking to your investment plan (and we hope you have one) remains ever-important in the current fast-changing economic environment. The overwhelming increase in the money supply has brought down the general level of interest rates, which has also affected the real estate crowdfunding market.  The first charge mortgage secured loans, that used … 
Read more "Why sticking to your 1 true investment plan is a great idea"

Why sticking to your 1 true investment plan is a great idea

If you have ever considered investing in unsecured, high-risk consumer or payday loans, you have probably come across terms like “Buyback Guarantee” or “Buyback Obligation” on the P2P consumer loans marketplace’s website. A large number of European P2P lending marketplaces specializing in trading unsecured consumer debt obligations are advertising the buyback guarantee as a miracle … 
Read more "The illusion of buyback guarantees"

The illusion of buyback guarantees

Real estate crowdfunding is changing the way people can invest in real estate. Historically, investing in real estate has been a privilege of institutional investors, corporations and ultra-wealthy individuals. Smaller investors’ options have been limited to buying residential properties or investing in real estate investment funds. At the same time, the idea of crowdfunding – … 
Read more "7 things you should know about real estate crowdfunding"

7 things you should know about real estate crowdfunding

4 minute read The EU market for crowdfunding has remained underdeveloped compared with other major world economies. For many years, one of the biggest hurdles faced by crowdfunding platforms seeking to offer their services across borders has been the lack of common rules and diverging licensing requirements across the European Union. The European Council approved … 
Read more "New European crowdfunding regulation EU 2020/1503 levels the playing ground and provides protection to the investors"

New European crowdfunding regulation EU 2020/1503 levels the playing ground and provides protection to the investors

What is an investment default? One of the worst nightmares of any investor is to look at his/her investment portfolio and find a defaulted investment there. However, default is not the end of the world and should not be the reason for stopping investment activity. The risk-free investment is a theoretical investment that carries no … 
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Investment default is not the tragic end of the world

There’s an intrinsic link between risk and return in everything you do and do not. Investing is no different. There is a high correlation between the investment risks and expected returns. Return is telling only half of the story The majority of investors tend to judge the success of their investments by the returns they … 
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Investment risks and expected returns

Depending on your willingness to be an active or passive investor and the importance of selecting the real estate investments yourself, there are three fundamentally different ways to invest in real estate. As all options have their pros and cons, you should consider each option’s suitability to your personal preferences. The following decision tree will … 
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3 ways to invest in real estate

In one of our previous posts, we introduced the concept of asset allocation and explained the importance of dividing the investment portfolio between different asset classes. Most investors are underweight in real estate How much should you invest in real estate? Unfortunately, there is no single truth or proven formula for determining the optimal size … 
Read more "Real estate: How much should you invest in it?"

Real estate: How much should you invest in it?

4 minute read An asset class is a group of financial instruments that have comparable characteristics and exhibit similar behaviours in the marketplace.  Real estate is an asset class that is often categorized under the larger umbrella known as alternative assets. Similarly to stocks and bonds, the real estate asset class is divided into several … 
Read more "What are the 5 major real estate asset classes and how much do they yield?"

What are the 5 major real estate asset classes and how much do they yield?

Reading time: 10+ min. Highlights Although income tax withholding rules were in place in the mid-19th century, Mr Beardsley Rumi, the director of the Federal Reserve Bank of New York, is considered to be the author of the modern withholding tax system. The US Congress enforced Rum’s proposals with the Current Tax Payment Act of … 
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Withholding tax and interest income

Crowdestate performance report: October 2021 Reading time: 3 min. Let’s take a look back at October 2021 – new, completed, and overdue projects, payments made to investors, and secondary market transactions. Successfully funded projects In October 2021, 10 new investment opportunities were launched on Crowdestate’s crowdfunding platform, out of which 5 were from Estonia,1 from … 
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