More transparency in the real estate market through flexible ownership models

Insider knowledge on the real estate market

Hardly any other investment sector reflects the influence of supply and demand as clearly as Real Estates. For example, the real estate market in Berlin remained dormant at low prices per square meter for years after the fall of the Wall, while generous living space became a luxury statement in Munich and Hamburg. Since the 2010s at least, the ruble was finally rolling in in Berlin as well and real estate prices skyrocketed. Anyone who invested wisely could expect an increase in value of up to 40% within a few years.

However, the situation today is more opaque than ever and retail investors in particular barely look through the jungle of holding companies and property companies. What is particularly obvious in Berlin is, of course, happening around the world. The following applies to real estate in particular: The background knowledge makes the music! The transparency register adopted at EU level is much more efficient in countries such as Spain or England compared to Germany. Here, numerous land register entries are still not digitized let alone freely accessible. How much your property is actually worth depends not only on square meters, location and year of construction, but above all on the comparative values. For a successful investment, you should therefore always keep an eye on current market events.

How much is your property really worth?

Especially for small investors, ancillary costs also play a not insignificant role. Brokers, land register entries, notary fees and all sorts of administrative procedures incur an average of 10 to 20% of the purchase value. A regularly carried out property valuation report helps you realistically assess the current property value. You can choose between rapid online methods, which estimate the approximate value within a few minutes using standardized data analytics, as well as more expensive but more accurate score evaluation, which is carried out directly on site by the respective reviewer. Your advantage here is that professionals are always up to date with the necessary market developments and can therefore also act predictively with their assessment.

These parameters are particularly important for real estate appraisals:

- Distance to city center

- connection to public transport

- Year of construction and modernization work

- number of square meters

- Schufa section of the neighborhood

- Close to doctors, schools, local suppliers

- Condition and equipment assessment

- Analysis of the environment of other offers

Real estate prices remain surprisingly stable during the corona crisis

The corona crisis shook the world financial market and in the meantime even caused negative scores for otherwise booming commodities such as crude oil. However, the slump in the real estate market feared by many private investors did not materialize. On the contrary, real estate proved to be a crisis-proof investment, which was also unable to shake the discussions about rent caps and the exclusion of rental contracts. This is also shown by F+B corona index. For this purpose, the developments in newly posted real estate listings for rental and condominiums and now also single-family homes are examined every week and the development of rents and prices is analysed. While the number of newly advertised rental apartments plummeted significantly (up to 40%) during the peak of the lockdown, the situation stabilized just two weeks later and was back at the start of May. However, not only the supply volume, but also prices remained constant. The striking effects on the stock market in particular even seemed to correct prices on the real estate market upwards.

Use asset-backed tokens smartly

Real assets as a hedge should not only increase transparency, but also investment security. Asset backed tokens in particular make a significant contribution to this. As digital bonds, they reflect the current market situation at lightning speed and react sensitively to any fluctuations. This enables investors to react quickly and helps owners to ensure ongoing liquidity. This is also intended to strengthen the owners' association as an investment project, which gives retail investors in particular more flexibility and can thus influence information asymmetries on the part of the buyer in their favor. With the option to sell 24/7, consumers have the opportunity to quickly liquidate real estate tied capital and to make non-transparent ownership models visible in the long term through the tracking option.