Today I bring you a new update from Urbanitae. As you may remember, I invested some time ago in a project from the collective real estate financing platform Urbanitae, one of the largest in Spain. This project said it would achieve a 30% profitability. If you want to read the entire path the project has taken, here you have all the information about Urbanitae’s highly profitable project.
Get up to €75 when you invest for the first time in Urbanitae by registering here with my invitation.
In the latest Urbanitae project update provided by the real estate crowdlending platform, it is reported that the housing development is completely sold and that, currently, improvements to the homes are being sold, to increase the total margin of the project.
Lower profitability in the Urbanitae project update
On the other hand, we have bad news. Due to the increase in the cost of materials that occurred in 2021 and 2022, the project margin has decreased. It is estimated that the final profitability of the Urbanitae project will end up 9% below what was initially planned.
This will mean that, from 30% profitability, we will go to 21% profitability. Depending on when the project is closed and the accounts are settled, the annualized return will be around 10%. Honestly, an interesting margin, but one that can be achieved in other projects, without such long deadlines. Reducing investment terms allows us to take advantage of compound interest, if we reinvest the principal and profits of projects with these shorter terms, therefore increasing total profits.
Of course, these types of projects, for now, are quite safe. Well, they are complex works, in which significant amounts of money are invested and not only for the Urbanitae platform. Regular updates like this help us trust these types of investments.
Urbanitae: date update
Currently, the work focuses on the finishes in the homes and the sanitation network and connections to the chalets. The delays accumulated due to the difficulties that have occurred with the construction company and the collection of materials have caused a total delay of 5 months to have accumulated. On the other hand, the closing of the accounts will begin shortly, which means that the work will be closed in the first months of 2024.
Other real estate investment platforms
There are many other real estate investment platforms. Each one with different philosophies and approaches. You have, for example, Civislend, which is very similar to Urbanitae. Here you can register and take advantage of my invitation to get up to €75 direct transfer from Civislend when you make your first investment.
Another of my favorite platforms is Equito App. This is focused on acquiring apartments and preparing them for rent, usually by rooms. In this way, the benefits obtained from rental income are optimized. If you register and, when doing so, enter my referral code IB894, you will get up to €70, if you invest a minimum of €200 (2 tokens).