As it is still very early days in my investment career, real estate hasn’t been my primary focus of attention with the relatively limited funds I have available. However, this last summer i discovered a new trend on the real estate marked (well, at least new to me), presented by the really interesting and rapidly growing danish company, Brickshare.
Crowdfunding of real estate suits me absolutely perfect, and as Brickshare accepts investments as small as 10.000 DKK (1333,33 €), I have already made my first investment. This type of real estate investment is also 100% passive, as I do not have to change the light bulps or repair the broken toilets when they fail. It is all taken care of for a small fee.
Another big plus for a small time investor like me, is that the small investments allows for a lot more diversification of the real estate portfolio to minimize the risk involved.
Project 2 – Nordvest (Brickshare)
A massive new building of 23 apartments in the center of Copenhagen with a short way to the train station in Nørrebro and the future Metro station.
The project has been fully funded during July 2019 and I can expect to recieve returns from the monthly rent early in 2020. Time will tell if the estimated 8-9% of annual profit is accurate.
I have invested 10K DKK (1333,33 €) in the project with the intention of holding my share for at least 5 years. However, it is possible to sell the share earlier, and new features on the Brickshare site in the next year should make the process of real estate investing much more user friendly and less rigid.
Take a look at Brickshare and the new projects here (danish site)
On a side note in this real estate section, I should probably mention that I actually do own my own home. Well, the bank still owns around 70%, and to be fair, “the long-haired one” owns half of the rest, but you know what I mean…
Project 1 – Nørrebro & Nordvest (Brickshare)
This project consists of 7 apartments in a very desirable area in the center of Copenhagen. The annual income is estimated at around 10% (before taxes), where the income from rent makes up for 4-6%.
Status 31/12 2018 – Cancelled
Well, this didn’t go as planned. Brickshare wrote to me in the middle of december ’18 with an apology and stated, that my investment would be refunded with a small compensation added. The cause of this was a delayed licence, that actually only affected this project.