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.
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
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.
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.
We were looking for a stable return without having to worry about the hassle of buying a condominium.
Investing in real estate gave us a very attractive return, paid quarterly, which was a major factor in our decision.
The third alternative for investing which combines the benefits of the two other models.
| Direct Investment (PPE condominium) |
Real estate fund | Crowdinvesting | |
|---|---|---|---|
|
Ownership
Is the investor’s name entered in the land register?
PPE Real estate fund Crowdinvesting |
|||
|
Accessibility
Is the minimum investment amount affordable?
PPE Real estate fund Crowdinvesting |
|||
|
Liquidity
Can the investor sell a part of his investment?
PPE Real estate fund Crowdinvesting |
|||
|
Decision-making power
Does the investor participate in strategic decisions and in the allocation choices?
PPE Real estate fund Crowdinvesting |
|||
|
Dilution of the vacancy risk
Is the vacancy risk diluted on several tenants?
PPE Real estate fund Crowdinvesting |
|||
|
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 charges the borrower a percentage of the loan amount, depending on the terms of the loan, to manage the operation.
The loan is materialized by a debt contract issued by the borrowing company which owns the construction project or the building to be refinanced.
Crowdlending investments are loans of between 12 and 36 months made to a real estate developer to finance a development project or refinance an existing asset.
Without replacing the bank, investors match the developer’s equity in the form of a junior loan. They receive fixed interest payments, either annually or at the end of the loan term, and recover their capital at the end of the loan term.
Foxstone requires at least one of the following four guarantees for crowdlending:
If a loan is extended, the borrowing company pays the investors contractually-defined penalties, and interest continues to accrue on the period for which the loan was extended.