Thought I’d let everyone know about this offer before it ends in a couple of days. Rendity is a property investment platform based in Austria established in 2015. They are currently offering a very generous incentive to new users: a €100 reward for investing €100 in a preferred property. The rate of return on investment varies between 4% and 8%, and the property ventures are generally located in Germany and Austria.
This offer is time-limited and only available until this Thursday, May 4th 2023.
I’ve checked and that’s correct. I still think it’s a good deal though. Rendity provide a comprehensive risk assessment of every property project, rated A (least risk) to E (most risk), see here:
If you only invest in A-rated projects you will minimise the risk. The €100 bonus (not to mention further possible €100 bonuses received if you invite others) effectively compensates for any (unlikely if A-rated) loss on your initial investment, and if you invest the bonus(es) in different (also A-rated) projects you can diversify and so minimise risk even further.
There seem to be some misunderstandings about what Rendity is and how it works here. This explanation I saw from another Rendity user a few months ago should clarify things:
I think it is a low risk investment for a few reasons. Firstly, because the loans are over-collaterized. Once you create an account (no deposit required yet) you can see all the relevant documents for each investment - the financials, the financial structure, the loan agreement, the independent risk rating. This is what is key. Each real estate project has been independently assessed. Some are riskier than others, so I stick to those with the highest rating of A. If the project fails, your principle (initial deposit of €100) is not at risk, but interest payments may be delayed. Rendity itself has been around since 2015 and has launched 164 real estate projects in that time (average project is around €3.5 million). Of those 164, 68 have been ‘refunded’ (i.e. project fully funded, sold, interest paid out to people like yourself as promised), 0 have failed, and others are in progress still. Rendity is a commercial investment adviser registered in Austria and an authorized financial investment broker in Germany regulated by the Chamber of Industry and Commerce. Investments are insured in full for the principle (your initial deposit) but not the interest.
Considering all this, and when you then add in the 4-8% return, €100 bonus (plus the bonuses you can make from inviting), the risk/reward balance swings firmly in favour of the latter in my opinion.
Well I personally have quite a low risk tolerance/appetite, so that’s saying something, yours must just be even lower. Without the €100 bonus I probably wouldn’t invest, but with a bonus equal to (or greater than including inviting bonuses) your initial investment, and the information in my previous post, I don’t see how this can be seen as a particularly risky venture or how the reward here is not worth it.
Except it’s not regulated by them - it promotes industry and presumably those who seek to build successful business.
An excerpt from their website:
The DIHK represents commercial and industrial enterprises and those belonging to the service sector vis-à-vis politicians, administrators and the public. It represents the general interest of the commercial sector at federal and European level – for example for less bureaucracy, free trade…etc
I’d suggest that’s a far cry from protecting investors. It can’t do both.
Of course it can. Rendity clearly states it’s regulated by the IHK on their website along with their legal contractual obligations according to German regulations and legal definitions of its operation:
Rendity is a commercial investment adviser registered in Austria and an authorized financial investment broker in Germany regulated by the Chamber of Industry and Commerce (IHK).
Notice pursuant to Section 3 (2) of the German Securities Institutions Act (Wertpapierinstitutsgesetz - WpIG): Rendity Securities GmbH is a contractually bound intermediary within the meaning of Section 3 (2) of the German Securities Trading Act (Wertpapierhandelsgesetz - WpIG) and acts as investment intermediary pursuant to Section 2 (2) No. 3 WpIG exclusively for the account and under the liability of CONCEDUS GmbH, Eckental.
The company is indeed registered and regulated by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht), the equivalent of the FCA. The funds are held with BNP Paribas bank, which is covered by the European DGS (Deposit Guarantee Scheme), the equivalent of the FSCS. From Rendity:
A separate insolvency protected bank account is created for each project. Only after a successful crowdinvesting campaign, namely reaching the funding limit, the funds are transferred to the real estate developer. In case the funding limit is not achieved, the money is transferred back to the investor.