Secure material assets are more in demand than ever. Real estate in top locations offers an ideal asset class, especially for security-conscious investors who do not want to forego appreciation in value and steady income. Often attractive real estate projects are reserved for institutional investors only. The block chain technology in combination with digital securities should change this for the first time and offer small investors the same access to top properties as professional investors.
Hamburg-based FinTech Finexity AG has positioned itself as Germany’s pioneer and market leader for this investment case. Investors can, however, invest € 500 in selected existing and new properties valued by external experts. Instead of buying an entire apartment and taking care of it, investors invest 100% digitally and participate proportionally in the forecast increase in value and ongoing rental income. This new type of real estate investment is in line with financial market standards, just as we know them from traditionally securitised financial investments.
FinTech’s concept has won first place in the German Excellence Award in the category Finance Start-ups in 2020. In addition to the technical innovation, FinTech has also shown that it does not have to be complicated to acquire securities digitally. No previous block chain knowledge is required.
Finexity only talks about real estate that exists or is close to completion. Only 3% of all analysed properties pass the examination process. Investors benefit from a leverage effect without taking up a personal loan. In fact, up to 60% of all properties are financed by a partner bank. The investors do not bear the risk of a project development, but benefit from new residential properties in the letting process.
The fact that the investment offers are a complete success cannot be overlooked; the real estate projects to date prove how successful the concept is. After a short time, the security tokens were already sold out. Finexity reports that it already manages over four million euros of assets under management (AuM).