House Africa is a real estate entity that deals with low-cost properties by making use of blockchain technology in buying and selling properties at low costs securely and conveniently. The entity’s mission is to provide a solution to housing problems in Africa by making sure people enjoy the rental experience. Rental applications and rental contract processes are made online through the use of smart contracts that make the process fast and more straightforward.
How HouseAfrica is Solving Africa’s Problems
You can invest in HouseAfrica by buying shares which will earn you high returns. By the use of blockchain technology, they sell parts of the housing project to investors. They are facilitating a fast increase in the acquisition of houses in Africa. Starting a real estate business can be very expensive, and it is considered to be for the rich only. However, HouseAfrica has come up with the solutions to this problem by channeling more funds in real estate development. The company accepts funds in debit card, bank account and even Bitcoin.
Real estate is a lucrative business to invest in. There is a massive housing deficit in Africa that is leading to a high cost of living and poor living standards. HouseAfrica is driven by its passion for technology to make it easier to invest in real estate. Besides, they have a team that has skills and innovations appropriate to make the desired change in real estate.
Note that at FiFi we are sceptical of buzzwords like Blockchain and Smart Contracts. Many people have been scammed out of their money when investing in projects using these buzzwords. A blockchain is simply a distributed database with some kinds verifications. In itself this technology is not going to solve many of the issues that Africans face around real estate.
How HouseAfrica Returns Works
HouseAfrica is offering investors the potential to create cash flow through annual returns. When you invest in a property, you get some shares which accumulate earnings every year. Real estate investment generates two types of returns; appreciation and income. Investors earn returns based on the shares they own. For instance, if there are two investors where one has 100 shares while the other one has 1000 shares, the one with 1000 shares will earn more returns compared to the one with 100 shares. An investor can choose to sell his shares at the current price value. By so doing, he will have capital gain or appreciation.
How Dividends are created in HouseAfrica
HouseAfrica earns income from both debt and equity investments. However, at the moment, they are putting more emphasis on equity investment at this stage.
In the past, equity investments provided investors with certain rights, such as the right to rental income in instances where a property is rented out. With time, investors in real estate with equity rights get significant investment as times goes by. Revenue is generated from payments for the rentals and gain on capital once they sell shares.
By investing in HouseAfrica, you gain partial ownership in many properties in Africa. The property can either be residential or commercial. If an investor has equity rights ownership, he can collect income from tenants occupying a property.
A Special Purpose Vehicle (SPV) is created for investors with equity investment, and then it is held with an investor in the Trustee Company. A Special Purpose Vehicle is a business entity that is created to meet a well-defined objective.
Return Distribution in HouseAfrica
HouseAfrica distributes returns in a 90 percent taxable rental income to the shareholders on an annual basis. It makes return payment to investors in cash, depending on the gains they have accumulated throughout the year. An investor can opt to withdraw the money through a bank account o reinvest it back to HouseAfrica. Payout of the returns does not depend on the value of your fund’s shares themselves. To get dividends, it is not necessary to sell your shares. Once you have bought the shares, you do not need to do anything else. You just need to sit back and wait for the returns and you will get returns without any extra effort.
It is essential to note that unlike dividends that are paid annually, appreciation is realized in different ways. One of the ways appreciation is realized is when a property is sold. The property is sold at the Current Price Value, which in the case is building whose value often appreciates. Appreciation is also realized through Net Share Value (NSV) which increases over time. However, depending on the kind of property you are holding and you will enjoy the appreciation when you are selling your shares. Since you now know how HouseAfrica works and how to enjoy returns, consider investing by buying shares with HouseAfrica.
Vincent is a Kenyan writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing from the University of Eldoret.