The real estate sector has more and more financing needs. According to data from the INE, the residential new construction sector has a turnover of 29.000 million euros per year, data derived from the sale of 100.000 homes with an average cost of € 290.000. Therefore, the financing needs are approximately 23.000 million euros. If we think that this year 2021, only 50% of that figure is financed through banks, the developer's needs for alternative financing and own resources are 11.500 million euros per year, and although the same sales volume is maintained of homes, each year this number will increase.
This alternative financing can come from the retail market itself (link to capsule: The retail investment), but will savers trust to leave their savings with a property developer? Most savers already own a home, and many more than one. When they bought their first home, most of them bought it off plan, that is, they chose the developer they trusted and deposited their possibly only savings on the acquisition of their first residence in order to have a roof. But let's not forget that the main objective was to invest. Therefore, in more complex situations, they have already taken that step, but do not remember it.
The retail market is already investing in the real estate market. What's more, part of the new home is pure investment. However, it is important to note that it is not the same to invest in the final product as it is to invest in the generation of the same product. When a saver buys a home just to invest, he is not enjoying the 20% return on his own business. The key, therefore, is to offer the possibility of being able to invest in the society that is developing the project. In addition, in order to invest in the project, it is not mandatory to have the necessary capital to buy a home, which allows making smaller contributions.
Savers know that investing in "brick" is a safe value and a refuge in times of crisis, but the question they ask is: what can I do if I have, for example, € 40.000 to invest in real estate? The answer is nothing. They can't do anything, until now. So far ... what does it mean?
It means that thanks to the technology and the regulatory framework of the CNMV, which protects retail investors, you can now choose your promoter to invest with confidence, to invest those extra € 40.000 that you have in the bank and not just to buy a first home.
Here are links to the complete # CápsulaIRM series so that you do not miss any step on the way to create your investment club:
- What difficulties do developers find in accessing bank financing?
- Retail investment, a blue ocean yet to be exploited
- Alternative financing, the solution to boost the real estate sector
- The investor club: the best tool for promoters to get investment
Why create your own investment club
How to create your investment club