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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 14:59

Rental real estate crowdfunding platform starts operating in Estonia

BC, Tallinn, 20.11.2017.Print version
BitOfProperty, the first Estonian platform for joint investments in rental real estate, launched operations in November and the aim of the platform is to enable rental investors enter the market with small sums by buying only a part of an apartment instead of the whole apartment, writes LETA/BNS.

Unlike the crowdfunding platforms that have been operating on the market so far, BitOfProperty does not finance real estate development loans, but gives investors the opportunity to enter at the next stage of investment, that is in the purchase of a specific real estate object, the company said.

 

The investors can directly invest in the chose apartment or commercial premises and earn a profit both from the rental income as well as from the price increase of the real estate.

 

The opening investment of the company is a rental apartment in the SpaceCube residential building being developed by Scandium Kinnisvara at 60 Ehitajate Street in the Mustamae district of Tallinn.

 

The average length of the investment period of BitOfProperty is three years, but depending on the characteristics of the project it may fluctuate between two to seven years. The length of the investment period is set during the preparatory period of each project, that is before the involvement of money.

 

At the same time, the portal is to soon also offer liquidity -- a secondary market for all investors will be opened in the first half of 2018, where it will be possible to sell one's holding and if desired, exit the investment earlier.

 

The next projects of BitOfProperty will be revealed at the beginning of 2018.

 

BitOfProperty OU was founded in 2015 and is owned by Sten Suurmae, Taavi Pettai and Timo Kaus.

 






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