Rendity Review: A closer look at one of the most interesting real estate crowd-investing platforms in Europe
Real estate is one of the most preferred methods of investing, mainly because of the good returns it provides. However, it requires a lot of funds to enter into the market individually, something that many investors may not have. In this Rendity review, we look at a European crowd-investing platform that provides access to the Germanic real estate market.
Rendity Overview
Real estate has been one of the most popular method of investing for many years, but until recently, the only way to enter the market was to either buy the whole property yourself or invest through real estate investment trusts. These options locked out many potential investors and developers, until crowd investing platforms became popular.
Rendity is one of the first platforms to access the Austrian real estate market. It was founded in August 2015 and registered in Vienna, Austria. The platform also has a strong presence in Germany. Rendity’s regulatory entity is the German Chamber of Industry and Commerce (IHK). The platform has an average return of 6.10% p.a. the interests can be up to 7% per year. The platform also offers an interesting registration bonus of 25 EUR.
Opening an account on Rendity
The platform has a simple registration process. To register you require an active email address, phone number, physical address and identification documents.
The first step is to fill the registration form with your full name, email address and to create a password for your account. The second is to confirm your email address, the verification email is sent immediately after completing the first step.
Click here to open an account Rendity Crowdinvesting
The third step requires you to upload Identity verification documents (ID, Passport). This step can be skipped but you have to show proof of identity to be able to make an investment. Your account is now ready for the first by bank transfer or by credit card. The whole process takes about 5 minutes to complete.
How to invest in Rendity
You have access to the projects that are open for funding immediately after confirming your account. To invest, you will have to fund your account through a bank transfer or credit card.
The projects open for funding are easily accessible by clicking on the ‘investments’ button on the top of the page. The site displays the current projects, projects that are coming soon and the past successful projects. The minimum investment per project is 1000 EUR. Investors have to invest manually as the platform does not offer an auto invest function yet.
Types of Investments on Rendity
Rendity offers two types of investment opportunities based on the risk level, profitability and time taken to mature. They include Rendity Growth and Rendity Income.
Rendity Growth
This product is for investors looking for higher interests in a shorter time, but it bears higher risk. Rendity growth specializes in granting loans to real estate developers for development projects. The model has greater profitability and higher risk than the Rendity Income model. The interests are distributed yearly in this model.
Rendity Income
This model is more stable and has lower risk than the Rendity Growth. It specializes in investing in rental properties with steady rent payments. The investment terms are longer than the development projects term and may last up to 7 years. The interests are distributed quarterly.
Rendity Auto Invest Tool
The platform does not provide an Auto-Invest Tool as of now, but this is not a problem as the volume of operations is still low and there are few projects to manage.
How much can you earn on Rendity
One of the benefits for investors on the platform is that all investments start earning interest immediately after they are made. The platform’s growth opportunities earn interest from 4% per year to 7% per year. The lower risk income model earns returns of 3% to 5% per year.
The platform has an average gross return of 6.10% and more than 10.5 million EUR has already been invested through the platform. Rendity offers investors an opportunity to resell their loans on rental properties after 24 months. All investor transactions such as deposit, investment and withdrawal are free and the platform does not charge a service fee.
Who can invest in Rendity?
Any person who is 18 years or older, has a European bank account is eligible to make investments on the platform. Companies can also invest if they have a bank account within the European Union.
Rendity Pros
- Interest earnings start from the first day of the investment.
- The access to Austrian real estate markets for investors looking to diversify their portfolio.
- The platform offers a 25 EUR signing bonus.
Rendity Cons
- The platform has a minimum investment of 1000 EUR per project, which means investors require high capital to diversify on the platform.
- The returns 6% -7% are below the market average.
Rendity Verdict
Rendity is a great platform for experienced investors looking to diversify and invest into the Austrian and Germany real estate markets. However, the high minimum investment of 1000 EUR and below the market returns reduce its overall rating.
The website has a great design and easy to use, in addition, the 25 EUR registration bonus is a good incentive to test the platform.
Other Crowd Investing Resources
For those looking for other similar peer to peer platforms to invest, you may want to read some of our other reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.
You can consider some other companies offering real estate crowd funding investments on our Mintos review and our Grupeer Review. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in Rendity or in any other peer to peer investing platform? Leave your thoughts and questions about this Rendity review below.