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Date: 11 October 2023

Real estate in tatters? This investment expert gives tips

One alarming headline after the other in the papers, and plenty of whispers through the grapevine: there’s a crisis, they all say, in the real estate sector. As a minor investor, what should you do when you’re overwhelmed with ominous messages about your favourite branch? According to Max Weterman, investment advisor at financing company Pearl Capital, all is not as bad as it seems. “Keeping your wallet firmly shut because of a rocky market? Don’t worry, there are plenty of options.”

Count on interests (or don’t)

“With real estate investments, calculations are often made based on prognoses,” explains Weterman. “This means that the final value and interests can end up higher or lower, and investors are dependent on the economic climate and on regulations. An alternative option is to invest in the financing of real estate rather than buying real estate directly. In this case, you can get fixed interests, like with Pearl Capital. This means you can count on a fixed annual return of 6%, avoiding uncertainty and creating a stable source of income. All of this from a starting capital of €100.000, and you’ll receive quarterly pay-outs.”

Don’t skip the research stage

“When investing, it’s important to have some knowledge about the market you’re investing in. Especially with real estate, you’ll want to know whether the investment is worth it. What is the quality of the property? Being nonchalant with this can spell a world of trouble. It’s a good idea to gather knowledge and get professional advice. At Pearl Capital, we make our own preselection of the real estate we finance, based on quality. Because we offer a model with a fixed interest rate, our real estate has to comply with strict quality standards. We only select the best property, because the parties we finance have to be able to sell or refinance their properties down the line to repay their debts. No matter the project, we always make sure our investors have the 1st registration on the mortgage of the real estate we finance. Combined with a conservative loan-to-value, this offers tremendous amounts of security.”

Trust in professionality

The image of the real estate sector has been somewhat tarnished in recent years, says Weterman. “That declining reputation is a consequence of rising interest rates and inflation, which has made rents and purchase prices rise markedly. The news often focuses on a few specific excesses, as if those are representative of the sector. That’s good for drawing readers, but in reality, this is a highly professional sector.” Weteman laughs: “We’re talking about substantial sums, everyone wants to deal with those in a professional manner. Most investments in real estate are still profitable, and real estate is still the best protection against inflation. The market certainly isn’t as troubled as it is made out to be, and there is still plenty of demand for financing.” Weterman does want to make one small side note: “Most professional parties have remained, but many smaller investors have thrown in the towel, have stopped buying and are selling their properties.”

For the latter group, Pearl Capital offers an alternative with fixed returns. “The market can stand on its head, we will always pay out the same interest rate. And an investment in Pearl Capital is a lot less work than buying, renovating or managing a property.”

Stronger together

“Investing successfully is near-impossible without help from experts. How would you estimate the value of a property and how would you deal with all the administration involved in an investment without them? A team of experts is invaluable. At Pearl Capital, we are familiar with the ups and downs of the market, and beside our own extensive experience we also call on the expertise of the best in their fields. Taxation, notary registration, they are all included. That extra service pays off in the form of certainty and fixed interest rates. And of course, those investments only result in happy customers.”

Source: trending.nl


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