Housers is a Spanish global investment platform that was started in 2016. The company, provides a peer-to-peer lending platform that connect lenders and borrowers. The company has managed to raise more than €106 million from more than 115k investors. In this article, we will look at how to invest in Housers, its advantages and risks involved.
Quick Facts About Housers
- Housers was started in 2016 by Alvaro Luna.
- Housers has raised more than €106 million from investors. It has returned more than €37 million to investors.
- The average annual return with Housers is 9.21%.
- Housers does not have a buyback guarantee.
What is Housers?
The peer-to-peer lending industry is one of the fastest-growing in the world. The industry is expected to have a compounded annual growth rate of almost 20% until 2024. In the past few years, the industry has continued to grow. Among the leading companies in the industry are Lending Club and Prosper.
There are several types of peer-to-peer lending marketplaces. There are those like Lending Club that lend unsecured loans. There are others like EstateGuru and Fundrise that help investors lend money to developers. These loans are usually backed by the properties. Housers uses the later model.
Housers is a platform that connects borrowers and lenders. Lenders invest their money and make money in form of interest payments. Borrowers on the other hand go to the platform, borrow money, and pay it back with interest. Borrowers prefer companies like Housers because many banks are not lending to individual lenders. Also, the process of borrowing money is relatively easy.
How to Invest in Housers
As an investor, the process of investing in Housers is very easy. First, you need to confirm that you meet the conditions. Housers is a global company but there are countries that it does not accept investors from. These include Somalia, Sudan, and North Korea. You can look at other countries here.
If you meet the conditions, you need to read the terms and conditions and then enter your personal details. The required details are your name, email address, and phone number. You also need to submit your identity card and proof of residence.
After you create an account, you deposit money to the account. You can do this easily by using your cards or your bank. Finally, you select the investments that you want to invest in. There are three types of investments in Housers. These are:
- Buy to let. These are long-term investments with a horizon of 5 to 10 years. You will get monthly payout as tenants pay their rents.
- Buy to sell. These are investments for renovations and ultimately selling of the house. The horizon is relatively short. It ranges between 12 to 24 months.
- Development loan. These are loans to develop a property. The horizon ranges between 24 and 36 months. Below is a summary of these loans.
What are the Benefits of Investing in Housers?
The finance industry is becoming wide by the day. As a result, it is very important for investors to explore new financial products to invest in. The peer-to-peer industry is one of those industries that you can invest in. Here are the advantages of investing in Housers.
- Property-backed investments. Unlike other peer-to-peer marketplaces, loans you offer in Housers are backed by property. This means that they are safe.
- Invest in developed countries. If you are from a developing country, you can invest in property from the developed countries.
- Income diversification. Housers help you to diversify your income.
- Passive income. As an investor, all you need to do is to invest and then start seeing money flowing in.
- Track record. Housers has a relatively long track record of managing money efficiently.
What are the Risks of investing in Housers?
Investing in peer-to-peer lending has its own risks. In fact, there are cases where people have lost a lot of money. It is possible to lose money when investing in Housers too. Here are the top risks of investing in Housers.
- Real estate industry risks. There are some risks of investing in the real estate industry. A good example of risk is a sudden fall in house prices.
- Vacancy rates. If you invest in buy to rent, there are risks that a property will not attract enough tenants.
- Security risk. There is a risk that the Housers platform will be attacked by cyber criminals.
- Liquidity risk. Housers does not have a secondary market. This means that when you invest in Housers, you will have a difficult time exiting the investments.
What are the Alternatives to Housers?
The main alternatives to Housers in Europe are:
Housers is a leading property peer-to-peer company. If you are interested in investing in a peer-to-peer property company, we recommend that you allocate some of your money in Housers. You can also allocate money in other peer to peer companies. Most importantly, we recommend that you invest in stocks, bonds, mutual funds, Bitcoin and index funds. These are known for their liquidity and long track record.
Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.