Inveslar is a platform dedicated to Barcelona properties. The biggest selling point is that they are Barcelona real estate specialists, and they can pick the best properties to refurbish and sell faster than other sites. A company will be created for each project, and as an investor you'll buy shares in that business. Inveslar takes a 4% commission on the capital invested in each enterprise. For a €100,000 crowdfunding venture, Inveslar would cut €4,000 off the go. Therefore, Inveslar will invoice this amount plus VAT to the company established to handle the project. For buy-to-let ventures, Inveslar takes a 10% gross rent commission as a management fee. Once a property is sold, Inveslar will take 2% commission on the property's final price.
Benefits & Drawbacks
- Inveslar has investment management experience. Each real estate market has risks, and understanding them requires on-site experience. Many real estate agents make their income on the purchase, not by selling. With Inveslar, the sale brings profit. Therefore, Inveslar has "skin in the game" to make the right property investments.
- Development of real estate has two kinds of risk: first, the form of real estate (e.g., dropping prices), and second, developers or promoters. Promoters' financial strength is important because if they default, you lose money. Inveslar does due diligence on financial resources of the company. Such work on how to invest in Spanish real estate projects is very time-consuming.
- Every property has a special purpose vehicle built around it. This implies each property is owned by a corporation that, in effect, belongs to shareholders.
- The minimum investment is €100 which is considered a fairly low amount.
- €1 million was invested into this program.
- Inveslar provides two different options, first to develop and sell land, and second to buy and rent for a pre-determined time, and then sell the property.
- Inveslar has a good management team including Carles Serradell, from the "Crowd Estates," Didac Figueres, Robert Stoelzaed, who are COO and CTO. Didac Figueras is a professional advertiser with Young & Rubicam and TBWA Barcelona. For the past decade, Robert Stoelzaed has worked as a web developer.
- Spain's P2P loans have a different structure than in the UK. In the UK, an investor receives credit while in Spain an investor directly purchases a slice of the property. This has the benefit that an investor has more rights in default, but potentially also obligations like property taxes.
- Inveslar can be considered a new forum for start-ups; start-ups, in particular, have risks of cash flow.
- The platform's number of assets is still very small. It suggests that Inveslar is in no hurry to list properties most likely because it takes time to find the right properties, without a strong property flow it will be time-consuming to diversify.
- Rental income and capital gains are taxed 19% in Spain. Inveslar immediately deducts this from any proceeds and transfers the proceeds to Agencia Tributaria immediately. Therefore, foreign investors should not file a Spanish income tax return if their only Spanish earnings come from Inveslar. (This is not tax advice, please ask around about your tax situation and consult with your tax advisor)
Should you invest?
Inveslar is a perfect investment hub for seasoned investors looking to diversify and invest in European property markets. But before making your investment, we always suggest visiting our website, since you'll probably find some alternative platform to suit your investment needs.
Inveslar main features and highlights
- Real Estate Investment