Rendity review shows that it is a Austrian-based investment platform for real estate and offers the first real estate investment depot in Europe: hence investors can compile a portfolio from different real estate projects that corresponds to their investment style.
Rendity was established in 2014. Rendity complies with strict information obligations according to the Small Investor Protection Act or rather Alternative Financing Act (“AltFG”) and is an authorized financial advisor. The entire investment into development projects is handled over an insolvency-protected escrow account. After successful completion of the funding, the funds are then transferred to the real estate developer. So far, over 1100 registered investors have benefited from Rendity. More than 2,141,000 of loans for businesses have been already funded through Rendity.
Key facts about Rendity
Estimated annual returns: Up to 7%
Loan security: Real estate as collateral
Provision fund: NO
Registered investors: 1080 investors in February 2019
Buyback guarantee: NO
Minimal investment: €1000
Time to become invested: Varies on loans availability
Time needed managing: Low
Country of operation: Austria and Germany
Defaulted loans: 0%
Borrowers verification: By the platform
Accepted currencies: EUR
Accepts investors from: All countries
The Rendity Review: Pros and Cons
– All loans secured by real estate
– Regulated financial advisor
– 0% default rate and no late loans for more than 60 days
– Creditor companies of the group specialise in short-term loans (PDL)
– Fast ID verification up to 2 working days
– Not so many investors and already funded projects
– Low interest rates (hard to compete with other P2P platforms)
– Bugs at the website (language needs to be fixed)
– High minimum investment (1000 eur)
– No BuyBack guarantee
Mintos, Grupeer, EstateGuru, Crowdestate, Lendy
Rendity Review: what I have experienced so far
Firstly, some words about opening account at Rendity. For me it was easy process, all I needed was to click fill your personal data and that’s it. Later you have to upload your ID card copy to Rendity’s dashboard and wait for confirmation. Howehver, during the registration half of the information was in German language and half in english. Verification letter that was sent had a bug inside and I could see a long coded text that was definitely not necessary.
Add funds to Rendity’s account also is enough easy. They even give 25 eur bonus for the first investment (if the investment is done in 14 days after the registration). However, minimal investment is high compared to other P2P platforms. You need to invest at least 1000 eur (where f.x. at other platforms you can start with 1 eur as initial investment).
Some of the investors can say that Rendity does not have a long traction and are a new players in this sector. And yes, that is correct. However, the platform is a financial adviser registered in Austria and an authorized financial investment broker in Germany regulated by the Chamber of Industry and Commerce (IHK). That gives more trust compared to other P2P platforms (even if those have traction but operate in non regulated markets).
I always emphasize that returns should not be the key factor once you decide to where to invest. The most important is how the platforms evaluate the borrowers (in this case real estate developers). Returns are low (only up to 7%), however the platform is regulated (that is plus).
Rendity seems to have a young team and a decent board of advisers that follows with a deep understanding about the financial markets.
It looks like they started Rendity in 2014, however more active marketing campaigns started only in 2018.
So, let’s see how they will grow in the future
Written by Tomas Medeckis