Mijn Vastgoed is a Dutch initiative, and only focus on the Dutch market. We want to make it possible for everyone to invest in real estate. That is why Mijn Vastgoed is developing an online platform where individual investment properties can be divided into blockchain tokens. These blockchain tokens can then be traded on the platform. Token holders are then entitled to a part of the rental income and the surplus value when the property is sold. The blockchain tokens can be purchased and traded on the online platform, enabling customers to purchase and sell their real estate investments at lightning speed.
Unfortunately, right now, real estate investments are not possible for everyone. Huge amounts of knowledge and money are a requisite in order to make a successful investment; in addition, the real estate market is a one-horse town industry where the most profitable properties are traded amongst each other, not to mention the unclear notary and financing costs. Crowdfunding based on blockchain has the potential to unleash a revolution in this industry.
IUnfortunately, right now, real estate investments are not possible for everyone. Huge amounts of knowledge and money are a requisite in order to make a successful investment; in addition, the real estate market is a one-horse town industry where the most profitable properties are traded amongst each other, not to mention the unclear notary and financing costs. Crowdfunding based on blockchain has the potential to unleash a revolution in this industry.
Yet people want to invest in real estate because the annual saving interest is at a historical low point. Mijn Vastgoed want to make investing in real estate available and easy for everyone.
Timing is important for every start-up. A new company has a way higher chance of success if the market is favourable. Mijn Vastgoed has a good timing thanks to the improving economy. Households have accumulated loads of assets and want to invest that capital in order to get more out of it than they could by using the historically low savings rate. That means it’s the perfect time to give the private investor the chance to access the real estate market in a low-threshold way.
Blockchain technology has become a very popular topic of conversation thanks to the rise of the Bitcoin. The entire crypto market has grown to almost EUR 500 billion and is therefore very current. The Mijn Vastgoed platform will also use blockchain technology and therefore benefits from the publicity surrounding bitcoin technology..
On the platform, investments in investment properties are offered separately from each other. Each investment property has different financial characteristics. For example, the purchase price, the term and the offered interest differ per property. On the platform, the visitor can filter properties by, for example, region, location, purchase price, yielded return, and term. This allows every visitor to determine what their ideal investment property is. Each property that has yet to be sold must be available on the platform with a timespan in which the customer can sign up. A property also features what percentage of investments is still available for that specific property.
The owner/seller of an investment property can offer their property on the online platform of Mijn Vastgoed. The seller uses a unique feature of the Mijn Vastgoed concept, namely that if Mijn Vastgoed sells the property at the end of the contract term, the seller still has a claim to part of the added value. See ‘How does Mijn Vastgoed™ acquire such investment properties’. In order to guarantee the quality of our platform, there are some form requirements for the seller in order to offer their investment property. Think of a minimum amount of information, documentation and a decent photo report. The seller can do this themselves or, at an extra cost, have this supervised by a Mijn Vastgoed sales agent.
MMijn Vastgoed™ wants to offer its customers an investment product with fixed annual interest, which means that the payment does not depend on factors such as vacancy, maintenance costs and/or unforeseen costs. With annual revisions of the interest, these factors will be taken into account. The profit for Mijn Vastgoed is in shared participation and the difference between the interest we pay out to our clients and the slightly higher actual return.
Mijn Vastgoed will initially participate in each investment property for a maximum of 50% with the help of (bank) financing. As the demand of token owners grows faster than the supply of investment properties, Mijn Vastgoed may decide to increase the percentage of 50% to 80% or 100%, for example. The relationship in which token holders and Mijn Vastgoed participate in an investment property can be adjusted on the basis of supply and demand of investors and investment properties.
The profit model is not based on a possible increase in the value of property. We find that too speculative to base a profit model on. Of course, a possible increase in value is a nice bonus for the investors./p>
Through the aforementioned profit model we align our interests with the interests of our customers/investors. As long as we receive a good return that is necessary for a healthy business management, our token holders also receive profits, and vice versa.
Mijn Vastgoed™ also charges a 1.0-1.5% brokerage fee for offering and selling the investment property by the owner on the online platform.
The world of real estate is in fact a difficult world to navigate in, especially without years of experience. Providers often have complex instructions and use a lot of concealing technical terms. This makes it hard for a starting investor to invest in real estate. Mijn Vastgoed™ wants to change this and gives four important distinguishing points:
Focus on the Dutch market
Because Mijn Vastgoed™ puts its focus entirely on the Dutch market, it is easier for Dutch investors to have an affinity with it. The investor is often better informed about the Dutch rental and housing market than, for example, foreign housing markets.
Investment per property
A lot of real estate investment funds invest in projects. It is often not clear at all what object the returns originate from. Mijn Vastgoed wants to invest in real estate by offering the choice to make investments per property tangible and transparent. In time, everyone will be able to invest in a house in their neighbourhood or on the street they live in.
Claim on added value
In addition to the claim on interest, the investor is entitled to the capital gain on the sale of the property. This is unique and makes the entire product even more attractive. Capital growth through the sale of a house with added value is familiar and trustworthy to most people.
Because the real estate tokens can be traded on the online platform, the investment through Mijn Vastgoed can be liquidated quickly. In addition, a customer can also choose to liquidate part of their investment. This provides great benefits for the customers. They do not have to liquidate their entire investment if they need some quick cash but can simply put a part of their investment for sale on the platform. Besides being able to quickly liquidate their investment, customers can also partly liquidate an investment.
Token holders’ rights are comparable to those of regular providers of a (bond) loan. For example, they are entitled to a refund of the deposits on the token (principal) and interest. The token holders receive a fixed annual interest rate of at least 3.5% to approximately 7.0%, depending on the budgeted rental income of the concerning investment property. Upon the sale of the property, the token holder participates in the capital gain in proportion to their contribution. The duration per object will probably be either five, seven or ten years.
Mijn Vastgoed becomes the legal owner of the property. As mentioned earlier, this is one of the ways to align our interests with those of our customers/investors. We do this by taking a profit between the actual return and the amount of interest we pay out to our customers. Without this, Mijn Vastgoed does not consider it possible to keep a responsible financial management and simultaneously offer this investment product.
In addition to the financial aspect, when exploiting ownership, the operating costs are cheaper. For example, financial and technical management are both proportionally cheaper for ten investment properties than for a single investment property, which means a higher return for the investor. Another additional benefit of central legal ownership is that it is way safer. If Mijn Vastgoed only links up investors and investment properties, there is a risk of fraudulent landlords, who could pay out your interest out of illegal activities rather than rental income.
If you want to invest in property via the online real estate platform you pay no fees at the beginning and at the end of the duration of the contract.
If the investor who wants to trade in between the duration of a real estate contract the investor has to pay a transaction fee of 0.025%.
The aforementioned homes are not easy to acquire. These properties are highly sought after and are often traded within a closed network. In order to purchase these properties, Mijn Vastgoed has deviced a unique construction where the seller is entitled to 25-50% of the added value. When Mijn Vastgoed and its investors re-sell the property, the former seller is entitled to added value. The right to 25-50% of capital gain on a sale is contractually determined. This is very lucrative for the seller and will encourage sellers to offer their investment property on the online platform.
In order to offer the seller this portion of the added value, Mijn Vastgoed needs to participate in properties for a maximum of 50%. If this percentage were any lower, it would have consequences for the extent of the abovementioned offer.
Mijn Vastgoed™ also offers full online sales support to ensure properties are well presented on the online platform. This makes sales easier for the seller. A platform that exclusively offers residential investment properties does not yet exist. Usually a platform offers different kinds of real estate such as business premises, catering facilities, retail space etc. By establishing a platform that focuses exclusively on residential investment properties, we focus on the (private) seller of an investment property. It is plausible that this seller would rather sell their investment property on a platform that is exclusively designed for this purpose and matches all of their wishes.
In addition to the optimal capitalisation factor, Mijn Vastgoed™ is also looking for homes with a high continuity of rental income. This means a reliable flow of rental income. This allows Mijn Vastgoed™ to guarantee a certain return and maintain a healthy financial situation. The requirements of Mijn Vastgoed™ therefore correspond with the requirements of the financial institutions when providing a mortgage for an investment property. Mijn Vastgoed™ does this in order to limit risks in regard to purchasing properties. The following requirements have been drawn up:
– The investment property must be let for a minimum of one year without any interruptions, and must be consecutive to our purchase;
– Only an investment in the medium to large cities is accepted: (List follows, but includes Alkmaar, Amsterdam, Leiden, Delft, Eindhoven, Rotterdam, etc.)
– The aforementioned capitalisation factor must be met.
In short, the investment property must have proven to be a valuable investment.
It can always occur that a investment property does not meet the projected returns. Mijn Vastgoed has a financial buffer to protect the investor for a revenue loss.
The plan is to reserve 300,000 to 800,000 euro from the tokens sale to create such a buffer. This is a large amount that has to make sure that the investors in the online real estate platform have financial security.
The financial and technical management of the properties is to be outsourced to a professional property management company. This kind of company is knowledgeable and can carry out both financial and technical management cheaper and more efficiently than Mijn Vastgoed could. As a result, the Mijn Vastgoed team can fully focus on the core business: managing the online platform.
Financial management consists of things such as collecting rent payments, correspondence with the tenant, monitoring payments and rent arrears, etc. Technical management consists of carrying out inspections for mutation and inspection reports, carrying out inspections in case of complaints and issuing maintenance proposals etc.