An interim conclusion after half a year of housers

This post is also available in: Deutsch (German)

After nearly half a year of investing with housers it is time to take a interim counclusion. During my investment period a lot have happened at the marketplace. The first projects in Portugal have been financed, new Cities in Italy came in to the mix and besides all that a hotel was financed. Further the dashboard was revamped and one can find now lots of data and overviews to all investments made. I get detailled income statements, income splits and a lot more. The diversification index (see picture) shows me that I am only medium diversified (66 out of 100 points).Housers Portfolio Shame on me 😉 Objectively I must say that it is really hard to improve as some factors are limited by nature (type of investments/geographically distribution etc). There just aren’t that many types of investment possibilites other then buy to let (BTL), buy to sell (BTS) or development loans to invest in. So I guess my setup is not that bad at all ;). I think the spidernet graph is a little ahead in time and there will be new opportunities on the platform. Even I got a load of data know, I don’t see a total yield figure and this leads me to my next point

Data, everywhere data

The abundance of data is enormous, but mostly estimations. This alone does not matter to me, but it is really annoying to check if the projects yield as they should. It works for example by checking the account statement which is downloadable. I have to admit that my investment horizon with nearly six months is too short as the buy to sell projects are laid out for 12 months, so no property is sold in which I am invested. We can actually see the developments of the properties, there are actual photos. Some of my BTS projects our just out of the renovation period and are being marketed. It will be interesting to see whether the estimaed yield can be reached. Development loans are easy, they just pay a fixed rate (deduction of 1/10 as commission for housers). The rental properties pay their rent punctually, so I asked myself where that money comes from as most of them are just out of renovation and there are no tenants at the moment. The money is taken out of the funding, so the investors basically advanced the rent to them self. The system is called «instant yield», plus the yield is guaranteed for the first year. The support did not explain to me where this position can be viewed in the business plan. I asked them 4 times but until today no detail explanations was received, I just asked to be told where I can find this information in the business plan. It does not really matter at the moment as it gets really interesting when the properties are rented by tenants. Then we will see if the income will rise or will be below estimations, at that point in time we will be able to determine if the estimations are ok or way off.

Increasing interest rates and porperty prices

In view of the occasion, as the stocks exchanges lose terrain as the yields go up. I did check the German housing prices and the yield evolution of 10 year German government bonds (see picture below). I was just wondering about the general coherence of property prices and interest rates.

Hedonische Immobilienpreise Renditen Staatsanleihen
Hedonic German Housing Index versus yield evolvement of government bonds

You can read everywhere that lower interest rates pump property prices. According to my graph (and the utilized instruments) we can see a coherence from starting 2011. While the blue line(Housing prices, left scale) increases, the yields (=interest rate, red line, right scale) decreases. It looks like as if yields fall below 2%, property prices are set to rise. This would make sense, as people want to get more as the 2 percent (above long term inflation goal) out of bonds, but this is just speculation.

What’s my point?

If we believe in a scenario where interest rates rise, property prices will decrease automatically. This would not be that good for my selling projects with housers as the estimated prices would not be achieveable. Further the same situation would apply on rents, so my yields would decrease. We are not there yet, one should just think about the possibility. I don’t believe that interest rates will go up dramatically during the next one to two years. But what do I know 😉

Conclusion

I am generally satisfied with housers. If this status remains will be seen and depends largely if the targeted sale prices can be achieved or not. In some months I will know more and report back when the first properties are (hopefully) sold. New investors (Dutch investors are restricted from the platform, maybe other countries, if so let me know please) get EUR 25 Bonus, if you via this link and invest at least 50 Euro. You will need to invest the bonus to be able to withdraw it. You should therefor top up your account with 75 Euros, then you can invest in 2 projects. If you sell one of your projects on the secondary market, your bonus becomes eligible to withdraw.

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