With confidence in the future — invest in a corona safe way!
The corona pandemic is affecting our daily lives. In particular, however, the global economy and therefore the capital market are suffering from the consequences of the current crisis. How is FINEXITY dealing with this crisis? What effects does Covid-19 have on the investments offered? How will the market change over the next few months? A comment on the Covid-19 crisis from the CEO.
What effects does Covid-19 have on financed real estate?
When we founded Finexity AG over two years ago, we made a fundamental decision: Investments are not always just about returns. First and foremost, it is about risk optimization and asset stability so that investors benefit from continuous wealth accumulation and growth. To achieve this, our team reviews up to twenty new investment opportunities for you every day. Only 3% of all analyzed properties, which we then offer you on the platform, pass our strict audit process. We don't just see ourselves as your No. 1 digital investment platform. We are your partner for building up your wealth with tangible assets — an integral part that is more important than ever, especially in these times of crisis.
In times like these, I feel confirmed by our decision to finance quality and not quantity, and I look to the future with confidence — in the last four months, we have financed real estate worth over 5,000,000 euros via the platform with public and non-public offers!
Accordingly, I would like to explain to you why our concept with digital bonds and their investment policy has advantages over other investments, especially in crisis situations:
✓ People always get used to it — but not everywhere!
Especially in times of crisis, when stock markets are exposed to severe fluctuations, real estate always offers an equivalent value as concrete gold. Even though we are currently in a difficult economic situation, real estate meets vital needs and therefore — due to our focus on Germany's metropolitan regions — long-term demand is unlikely to collapse.
✓ Long-term outlook for your success
True to our motto “wealth creation over generations”, the issuers of the individual properties are long-term investors, usually over 15 years of age. Should short-term price declines occur on the real estate market over a few months or even years, these are generally irrelevant to the issuer. As an investor, however, you have the option of offering your digital shares for sale at any time and thus benefit from maximum flexibility.
✓ The profit lies in purchasing
Based on external reports, issuers can purchase real estate indirectly at prices that are often an annual net rent below the current market value and thus create additional reserves.
✓ Low debt ratio as a risk buffer
All properties have high financing buffers, as the average debt ratio is just over 60%. Thanks to this risk buffer and long-term outlook, we are more crisis-proof than most other investments.
✓ Credit-worthy tenants as a basis
In order to minimize potential rent losses, we check each tenant for their or his creditworthiness. When it comes to credit checks, we always work with risk reductions. As a further buffer, the risk of loss of rent is included in the yield calculation. However, should rent losses occur in the next few months, we do not consider them to be substantially dangerous. There may even be government support for emergency tenants.
What's next — a personal market outlook
There is no need to panic!
What many predict is very rarely true. So — why should residential properties (not hotels or office properties!) fall in value? The biggest risk for our properties is rising interest rates: But do you really think that interest rates will rise to 5 to 7% p.a. in the foreseeable future? Very unlikely! Since 1990, we have had falling interest rates. However, should interest rates rise sharply, countries such as Italy, Spain and Greece will be the first to fail — what will happen with Germany is questionable.
Of course, there will also be some property owners who absolutely must or even want to sell their property due to liquidity bottlenecks. From my point of view, however, it is — normally — more likely that the transaction volume will fall in the next few weeks, but not the price. In the medium term, new free funds will then end up in real estate and not in stocks. The more risk-averse investors become, the more they will avoid high-risk investments (e.g. stocks) and invest in “STABILITY.” Attention: Not every property in every region is suitable as a capital investment. The influx to big cities will continue and living space could now — due to delays in completion — become even more scarce!
In this sense, there is now a temporary problem, but not a structural one!
It is precisely during these times that you should not only rethink your investment strategy, but perhaps you should rethink it!
Real estate has a firm place in investment. If you want to buy a residential property in a medium to good location, in popular cities such as Munich, Düsseldorf or Frankfurt, you need a lot of money, luck and patience. Or you think again!
With us, you can easily put together your own real estate portfolio online, with any amount starting at 500€. You don't even have to leave home for that. Corona safe, so to speak!
On behalf of Finexity AG, I can promise you that we will do everything possible to secure your partially financed real estate and regularly inform you about new developments.
