Real estate attracts a growing number of investors looking for a tangible investment which generates steady returns.
This asset class is an alternative to saving accounts, with zero or negative interest rates, and the uncertainties of the financial markets.
In Switzerland, 25% of the property’s value in equity is required
The search for, the analysis and the management of a property can be time consuming and costly
The analysis, the acquisition and the management of a property require a specific knowledge and skills
Access to quality offers requires a privileged network
My aim in investing in real estate crowdfunding was above all to be able to provide a complementary income to my pensions. It was also the turnkey service that convinced me. The fact that Foxstone takes care of everything, that I don’t have to deal with any problems with rental management etc., is a great advantage.
With my family we were looking for an investment with a very low level of risk, ideally in Swiss real estate, in order to secure an inheritance and get a return on it. In addition to relieving us of all the administrative troubles related to the management of the property, Foxstone allowed us to avoid potential family conflicts because instead of investing a common sum, each of us was able to invest in his own name.
A year ago, I came across an article in the Tribune de Genève, which presented the concept and advantages of real estate crowdfunding and mentioned Foxstone. I found it very interesting, so I contacted Foxstone directly for more information.
I’ve only been on this adventure for six months. I can therefore say that for the moment I am fully satisfied. I was able to receive my first payment on the date and at the percentage indicated, which immediately reassured me.
The third alternative for investing which combines the benefits of the two other models.
| Direct Investment (PPE condominium) |
Real estate fund | Crowdinvesting | |
|---|---|---|---|
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Ownership
Is the investor’s name entered in the land register?
PPE Real estate fund Crowdinvesting |
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Accessibility
Is the minimum investment amount affordable?
PPE Real estate fund Crowdinvesting |
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Liquidity
Can the investor sell a part of his investment?
PPE Real estate fund Crowdinvesting |
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Decision-making power
Does the investor participate in strategic decisions and in the allocation choices?
PPE Real estate fund Crowdinvesting |
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Dilution of the vacancy risk
Is the vacancy risk diluted on several tenants?
PPE Real estate fund Crowdinvesting |
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Diversification
Is it possible to invest in several buildings in different geographical areas?
PPE Real estate fund Crowdinvesting |
The vacancy risk is spread over several tenants.
Foxstone takes care of everything from the selection of the building to its management.
Minimum investment amount of CHF 25,000
Your vote counts during the co-ownership’s general assemblies.
For crowdlending, Foxstone takes the following fees: 3% of the amount of the loan from the investor and 3% of the amount of the loan from the developer.
Each investor expressing an interest in an offer receives the investment file including:
And must fill, sign and return the following documents:
These documents are required by the mortgage provider and the notary.
The real estate developer supplies quarterly reports (according to the project) on the project’s progress with photos of the construction site. Foxstone synthesizes these reports and publishes them on the investor’s online dashboard for an easy consultation.
Enterprise contracts are generally preferred by Foxstone because they reduce the risk of delays and budget overruns. This is because the company can be held responsible for any variances. Thus, any overrun of the set construction budget is the responsibility of the construction company and any overrun of the delivery time is penalized. Therefore, enterprise contracts are instrumental in the risk of overruns.
In the event that Foxstone were to disappear, this would not affect the loan. Investors are still in possession of the debt contract issued by the company owning the real estate development project entered in the land register on behalf of the company. Depending on the investment offers, these contracts may also be linked to a first or second rank mortgage note, thus increasing the safety of the investment.
