Average IRR equivalent projects

A metric's change in the projects' description

The transparency of information

It is probable that you haven’t seen it yet but we have made some little changes on the projects’ description. From now on, each partecipative loan opportunity (buy – to- sell and buy – to – let) will have the average IRR  equivalent projects.

Why have we made this change?

As you may know, since a few days ago, in the development loan opportunities description it was shown the estimated profits of the project, which depended on:

  • The time frame.
  • Market’s variables.
  • Promoter’s estimations.
  • Tax report.

This change enables us to comply with two fundamental premises on each investment:

  1. Investors can receive more precise information about their investment prospects from the very first moment they look into a project.
  2. Investors can make a decision based on many available data and their personal profile.

This way, investors will have a more clear and broad view about an opportunity, also because the estimated yield will not disappear but it will still be available inside the business plan of each partecipative loan opportunity.

Average IRR equivalent projects

The average IRR equivalent projects consist in the average rate of the finalized projects, keeping in mind the opportunity characteristics, which are:

  • Type of opportunity, depending on the final aim of the property (for commercial, residential or special use).
  • The risk of a project, according to the nature of the opportunity ( SAVINGS or INVESTMENT). This variable is strictly related with to the score of the opportunity that can be found in each project description.
  • City, according to its population.
  • District, depending if the project is located in the metropolitan area or not.
  • Size of the property (in square metres): in the case of several properties, the size of the standard dwelling is taken into account.

Each project is evaluated according to these variables and, later on, we create groups or clusters of projects that have the same characteristics.
As a result, once the grouping is done, the final average IRR is equivalent to the average of the sum of the single IRR of each project and, of course, weighted according to the project’s financing objective.
On the other hand, for the calculation of the IRR of an individual opportunity, we take into consideration the total income over the life of the opportunity and the time frame that has been passed between its funding and its final conclusion.

These figures will enable the investor to get to know the final results of projects that have similar characteristics to those that are currently on sale.

Olite: get to know these changes concretely

Olite is our latest buy-to-sell opportunity in the north of Madrid and, most importantly, it is the first project that presents the average IRR equivalent projects.

It is located in the district of Tetuán, an area of Madrid which hosts a large number of Housers’ successful projects, such as Maravillas, an opportunity that was launched during the last month and was financed in less than 24 hours, San Valeriano, and Alvarado, a project which was purchased, reform and finally sold in only 8 months with 20% IRR.
Apart from that, its appealing derives from the fact in just one year the price of housing in the area has grown by 5,8%.

Lastly, Olite has an average IRR equivalent projects of 11,78%.

Get to know this opportunity and invest in the north of Madrid!

Be the first to comment

Leave a Reply

Your email address will not be published.


*