Fixed-Rate Opportunities at Housers. Explanation & Characteristics.
In this post we will explain in detail the fixed-rate opportunities in Housers.
How many times have you heard “don’t put all your eggs in the same basket?” This is the reality and this is what diversification is all about: reducing the quantity of risk that you take. According to the Oxford English Dictionary, diversify means “make or become more diverse or varied,” So in our case, diversify your interests.
Additionally, being that this is our golden rule (diversifying) we make it simple for you by offering three types of opportunities in Housers:
The Fixed-Rate opportunities are perfect to maximize your benefits. Let us tell you how!
What are the Fixed-Rate opportunities?
They are medium-term opportunities (12 – 36 months), where a fixed-rate loan is provided to a Real Estate project developer. In this case you begin generating an income from the first month in function of the interest previously established with the project developer, and after the valuation of the entire project on behalf of the Real Estate, legal and finance departments.
In Housers you will find two types of fixed-rate opportunities:
- Fixed-rate opportunities for reform
- Fixed-rate opportunities for promotion
How does one obtain earnings from the fixed-rate opportunities in Housers?
In the fixed-rate loans, it isn’t necessary to wait for the sale of the property, but rather you can receive monthly interests up until the operator amortizes the entire loan. It’s mostly about opportunities that are focused on the construction of new building, creation of new offers to respond to the existing demand and the rehabilitation of new spaces in the city centers of large cities.
Monitoring of projects: better security.
Following a signed contract with the multinational company GOC, there will be a control from the beginning of each euro that comes out of the provided loan. The purpose of this is to keep a control over the money and assure that is goes to where it was intended from the funding of the project up until the return of the original amount.
The objective is therefore to provide the investor with a more reliable mechanism on the correct destination of investments.
The provided fixed-rate loans will be given to Real Estate operators, this way GOC can control the quantity of money given to the operator from the loan and at what moment to send it. Once the project is finalized, a commonwealth account is created in which all the funds are deposited into. This account will include authorized access to the operator (the person who receives the loan) and the external company in charge.
Net Yield and Risk
On the following image you can see the yield-risk relationship in the fixed-rate opportunities:
For fixed-rate opportunities for promotion, the risk is higher than in the previous given that the construction of a new-built requires more people involved and therefore more transactions.
Access the open opportunities and discover the fixed-rate opportunities available in Housers.
In this article we show you the relationship between yield-risk for each kind of investment opportunity in Housers.