#### _"To buy, or not to buy, this is the question"_

Whether it's Romania or the USA, in the current context of global instability buying a home is an important step in many people's lives. Of course, this decision is made with difficulty because of the fluctuating real estate market in Romania and beyond. This leads many to wonder: _when is the right time? Am I making the best choice by investing in this house? How will the real estate market evolve in the coming years?_

People who want to invest and not just buy a home for themselves will also find themselves in this situation, but they may not know all the details involved - we're here to clarify them!

### WHAT THE REAL ESTATE MARKET INCLUDES

_"The real estate market includes all transactions aimed at acquiring a property, which can take the form of homes such as houses, apartments, industrial buildings, commercial spaces, land etc."_

### ROMANIAN CULTURE

The effects of post-communism are still present in the Romanian mentality of owning property and having the certainty of possession of a stable, non-volatile thing. It is possible that people's deprivation of goods may eventually become so influential that it determines a way of life for the culture of an entire country. Thus, Romania is a leader in Europe in terms of property ownership ahead of other Western countries.

### BENEFITS
Nevertheless, this fact is not necessarily a bad thing because it can bring benefits through:
- Renting the property - both through the classic long-term concept and in the short term through a hotel regime 
- Capital appreciation - which can be estimated based on the increase in real estate prices 
- Resale - which materializes the capital appreciation.

 The current trend in Romania shows that the most profitable cities for long-term investments are: 
1. **Cluj-Napoca** - we all believe that you have heard how the real estate market has had an exponential growth in this city due to numerous university centers, modern infrastructure and the IT industry that has established its roots there. 
3. **Bucharest** - the capital of Romania brings about 28% of Romania's GDP, so an investment here can never go wrong. 
5. **Brașov** - this city is in continuous development on all levels. Its history of the Saxons in the area, the local tourist attractions and its geographical location in a mountainous region rank it as a top place in the so-called national tourist treasures. 

Thus, real estate is one of the few goods that successfully withstands the passage of time and the power of inflation and certainly it brings a long-term profit in the future - A SECOND SALARY.

Of course, the flip side of the coin is present everywhere and in this context it can be highlighted by situations given by some problematic tenants, increasingly burdensome tax increases, as well as controversial and unpredictable global economic crises.

### BRIEF HISTORY

Regarding the real estate market in Romania in the last 10 years, we can say that it has had periods of fluctuations due to global events.

One of the most significant events that the economic sector, and implicitly the real estate market, was subjected to was the crisis of _2008_ from which banks, investors and developers made great efforts to emerge over the next 10 years. 

The pandemic in **2019** caused a deadlock in the real estate market as transactions decreased. People became more hesitant to buy due to the turmoil of events. Moreover, bank loan payments were deferred, and credits were blocked at one point, only to be granted later with lower interest rates to stimulate recovery.
 What is surprising in this situation is that real estate developers continued their activity, even though demand was lower and conditions were more challenging. However, at the beginning of the pandemic, premium real estate paid in cash, such as houses and intravilan land outside cities, were at the opposite pole, which remained and then became sought after.

Later, in **2020**, the post-pandemic effects showed us that the population started flirting with investments again and as a result studio apartments became popular in the field. We are in a period of gradual return to normalcy.

In **2021**, the real estate market began to take an upward trend by buying 2 or 3-room apartments.

The year **2022** continued the growth of real estate sales, being the 3rd consecutive year when this happened driving a 54% increase in the last 3 years.

### CURRENT - 2023

The border war and the energy crisis have left their mark on real estate prices, which have been steadily increasing since the start of the war. Among other factors that led to this increase are factors related to both investors and developers.

- As far as developers are concerned, they are facing: increasing construction costs and, consequently, more laborious completion periods than initially established, the crisis of materials that have become increasingly expensive since the pandemic and the workforce which is becoming less and less available but expensive. In this situation, it must be remembered that deficient Romanian bureaucracy does not help either, but, on the contrary, it is a potentiating factor.

- Regarding investors, they are divided into two categories: 

1) The first category is facing the problem of loans, which in addition to increasing interest rates have become increasingly difficult to access, leading many to remain in rental housing. However, we predict a bleak future, calling 2023 the year of _ rentals_ .

On the other hand, those in the IT sector are opting for cash payments. Because of these factors, 2023 will create a marked distancing between the two categories, which is driving developers to take risks, as evidenced by the rate at which construction is taking place in the Bucharest-Ilfov region and beyond.

All of these factors could lead to a possible new crisis in the years **2023-2024**, in which developers are no longer necessarily willing to negotiate prices due to obvious reasons of covering expenses and gaining profits to enable expansion. At the same time, the purpose of the real estate market is to transact, so a possible crisis can only be avoided if developers begin to be more flexible with property payments. Consequently, they have done so by supporting buyers with installment payments, which have continued the flow of transactions.

In conclusion, 2023 will be a year of adjustment, of relation between the demand of investors and the offer of developers, which will be based on reaching a consensus regarding the current needs of both parties. This could lead to a stabilization of prices and inflation in the second half of the year.

### PREDICTIONS

However, in the next 2 years **2024-2025** we can still expect a price increase due to the growth of transactions based on higher demand caused by lower supply. This reduction in supply is somewhat influenced by the management of each city's municipalities, which are authorizing fewer and fewer construction projects, blocking city zoning plans and making it difficult to reconstruct historic properties. On the other hand, the 2024 election could be the key to alleviating this issue, as politicians' promises could have a positive effect.

The future of real estate investments in Romania

Who remembers their childhood mountain vacations, the fun moments in the snow with friends? I think no one can forget the joy felt when winter came, with large snowflakes falling and covering everything in a fluffy layer, turning everything into a fairy tale realm that took your breath away for a second. Everyone was looking forward to making snowballs, sledding, skiing, hiking, or other winter activities.

Unfortunately, as the years passed, daily worries took over, time was no longer our friend, and winter vacations and the relaxation of the past became more and more expensive. Nevertheless, it is good to take a break from our daily rush and enjoy what surrounds us.

### Combining Business with Pleasure
For this reason, we come to your aid and present an exclusive mountain resort that has access to both the numerous ski slopes in Poiana, as well as to the nightlife of the city of Brasov. Among the tourist attractions in the area worth visiting for all age groups are Solomon's Rocks, the cable cars in Poiana Brasov, the Postavaru Massif, Tâmpa, the Black Church, and more.

### GRAND CHALET - the new exclusive complex with premium apartments in Poiana Brasov
Grand Chalet is a unique and innovative project that combines durability, luxury, and modern design. If we were to describe the entire project in one word, we would certainly attribute it to refinement.

We can assure you that it has a solid brick construction, with external insulation made of basaltic wool, underfloor heating, and laminated wood interior doors.

It is located in Poiana Mică, Vânătorului Street, no. 2, and comprises a well-thought-out complex of 7 villas with 98 luxury apartments.

### A Suitable Investment for Aparthotel Rental
The apartment complex is not only addressed to people who want to retreat to a mountain oasis of peace but also to tourists who want to visit the mountain resort and want a stay that meets high standards of comfort.

Stock.estate managed to enter the behind-the-scenes of selling these properties, and as a result, we present you an apartment dedicated exclusively to a restricted circle of investors under the so-called new concept of Fractional Ownership.

### What is Fractional Ownership?
In essence, this apparent novelty has existed since the 20th century but has only recently taken shape under this name. We could say that the trend has existed forever, from the most ancient times when several wealthy people joined together and built a project from which they all had a share of the profit.

It is impossible for us to believe that groups of people do not form every day with the aim of collaborating to buy a service, whether it is a simple food order at work or valuable goods.

Returning to the present, this concept represents an accessible method for people with a fine sense of luxury who want to enjoy the benefits of valuable assets without having the responsibility of paying for the entire property. In other words, they can participate as co-owners in buying the property, which makes the concept of fractional ownership open to the public from all social categories.

### €10,000 tickets to enjoy the luxury experience and make a profit
Through this move, we support the idea that buying an apartment does not require a full investment of €140,000, but rather tickets of €10,000 each.

In this situation, numerous select groups can join together, consisting of acquaintances, family, friends, or even strangers who share an affinity for real estate. Whatever the circumstances, each co-owner will have a well-established and guaranteed profit. ### Advantages

The advantages of the concept involve diversification and flexibility.

Investing in multiple properties will lead to a highly diverse investment portfolio. This fact could provide you with essential information to better understand the real estate market and subsequently create an investor identity.

As Abraham Lincoln once said, "The best way to predict the future is to create it," Stock.estate supports ambitious and courageous young people who are always asking when the right time is, creating that moment for them through this new concept.

Additionally, with this investment method, you can include a wider range of units, such as family homes, vacation homes, apartments, commercial buildings, or even vacant land. Therefore, the acquired investment portfolio will become much more extensive, knowing a little about each real estate market.

However, we also thought about the flexibility of the investor, who may not want to lock up all their capital in one purchase, perhaps due to a lack of experience, skepticism, or simply their versatile character. Thus, this concept could suit them well.

Tangibly, the benefits of our proposed concept
Investing €10,000 in a campaign ticket will bring profit in two forms, namely:

- A 7.7% annual return from renting out the apartment on a hotel basis. Don't worry; you don't have to worry about this, a real estate management firm will take care of renting the premium vacation apartment, so each investor will passively receive their share.
- A 35% capital gain in 5 years through the unit's appreciation. Over time, real estate investments have proven to be the best solution to combat the negative effects of inflation. As a result, investing funds will surely and guaranteedly bring a timeless material benefit.
Stock.estate has enjoyed real success, developing an exclusive community through the Grand Chalet campaign, with luxury vacation apartments. Within a limited time frame, the interest and commitment of the public for this novelty were astonishing.

As a result, we decided to make the campaign for a limited number of only 14 tickets, of which 7 were reserved from the first moments when we unveiled it.

Be one of these investors and contact us now for more details. Without delay, we will put you on the waiting list for one of the 7 remaining tickets, and after analyzing your investor profile, we will contact you to finalize the transaction.

Real Estate Investments in Touristic Units

When I was a kid I loved monopoly. I loved to accumulate properties that generated passive income each time another player was stopping by my square. 

Growing up I started to play monopoly in real life. I’ve built my portfolio diversifying between residential, commercial and vacation properties across various countries and locations.

The only problem is that it takes a ton of capital to do that. So recently I started to buy properties with my friends committing smaller amounts and owning fractions of the whole thing. 

So if I am already doing it with my friends and it is working, why do I not share it with my broader community and stock.estate users?!

**_Eureka moment: stock.estate is fractional ownership too._**

The advantage: I do not need to have 200-300k and buy the entire asset, but any time I have spare 10k I can buy together with my friends a real estate asset that is going to generate rental income and capital gain. The investment risk is diversified across different types of properties so the return is going to be stable even in adverse market conditions.

### Fractional Ownership Concept

The real estate industry has been historically characterized by a large number of intermediaries, material information asymmetry and high barriers to entry. This less-than-ideal configuration, which has essentially been unchanged for decades, creates frictions and frustrations for buyers, sellers and renters.

Given the economic importance and the gigantic size of the real estate sector, it is no surprise that a multitude of start-ups have been working tirelessly to transform the various verticals of the real estate value chain. Between them there is [stock.estate](https://www.stock.estate/) who propose the fractional ownership model adapted to the Romanian real estate market.

Fractional ownership refers to buying fractions of a real estate. This type of investment offers several benefits over traditional ownership. As an alternative, investment in fractional ownership of residential real estate, commercial properties or vacation properties can be an innovative and attractive way to access the same investment benefits as direct property ownership without the associated frictions.

While the principle of fractional ownership seems rather simple — you own an interest in a property alongside other unrelated investors — its actual implementation can take many different shapes and forms. After comparing several alternative real estate investment models, we can share some observations on this fast-growing space.

First, the profile and quality of the investable real estate hugely makes the difference, it is the game changer in this type of activity. For wealth accumulation and preservation, we firmly believe in the old mantra “location, location, location” and we prefer to promote prime properties in city centers or well-known vacation locations.

Second, there is a wide spectrum of fractional investment strategies. At one end, there is the marketplace that only offers listings of commercial properties tokenized, for example. At the other end, you'll find full-service investment platforms that have experienced teams curating quality assets and co-investing in the properties alongside investors to ensure the alignment of interest. We position [stock.estate](https://www.stock.estate/) in this second category, providing an end-to-end service.

Finally, the real estate investment experience of the team behind each platform is a critical aspect for assessing their ability to provide attractive opportunities. Based on our experience in this industry, only on-the-ground networks and relationships can provide access to the best deals on the market.

### Who Can Be A Co-investor In Fractional Ownership Properties?

Everyone.

### The Pros
- **Diversification** – If you want to invest in real estate without putting too much money down, fractional ownership in fractional properties might be just what you're looking for. This model applies even to expensive assets. By investing in multiple properties, you'll spread your risk across several investments. This way, even if one investment fails, you won't lose everything.
- **Flexibility** – With fractional ownership, you don't have to commit to owning a certain amount of a property. Instead, you can buy a percentage of a property. For example, you could purchase 10% of a residential building and start earning rental income from the beginning. In this way you'd still own part of a property, but you wouldn't have to pay for the entire thing upfront.
- **Investment Options** – When you invest in fractional ownership, you can choose from different types of properties. Some options include single family homes, condos, townhomes, commercial buildings, and vacant land. Each type of property offers a unique set of benefits and drawbacks. 


stock.estate & fractional ownership

**Sustainability first! This is one of the fundamental principles guiding our selection of projects proposed on the stock.estate platform.**

This is why we immediately resonated with Valentin Ivana, managing partner, at [K2 Development](https://k2development.ro/), who before building his first residential project clearly established within the company the mission, vision and values that guide him in building projects.

I believe that the main component that determines the success of a project is determined by the people running the business, to a much greater extent than external variables. 

Let's see why we strongly believe in K2 development projects:

## K2 development
K2 development's mission is to create residential developments with a vibrant atmosphere and urban spaces that generate sustainable value for the communities they create. 

Valentin succeeds in anticipating the desires and needs of future communities based on principles of sustainability, efficiency, safety and comfort. Values such as transparency, efficiency, community building, sustainable architecture and adaptability are the basic pillars that guide the construction of projects, thus providing a high level of quality of urban life.

_"We implemented the smart home system in the new project. We are also betting on alternative energy and are studying the possibility of installing heat pumps with photovoltaic panels on the next projects. These will become standard equipment in the coming years, like underfloor heating or smart home systems. Right now we're going with gas-fired power plants, but in future projects we're considering heat pumps. So far, we have focused on materials that insulate homes as well as possible for low energy consumption"_ [Valentin told to ZF Invest](https://www.zf.ro/zf-investiti-in-romania/zf-investiti-in-romania-valentin-ivana-k2-development-panourile-21187385).

## Smart Residential Project
This crowdfunding campaign proposes to finance up to €50,000 (in the first phase) for the development of the Smart Residential project located in Otopeni, Strada 1 Mai, consisting of 9 houses, with modern facilities and amenities, a private residential complex with its own infrastructure, connected to all utilities, with a green area and a playground of about 450 sqm.
 
Each house has its own generous garden and two parking spaces in front of the house.

![Picture2.jpg](https://stocke.fra1.digitaloceanspaces.com/prod_uploads/a800da8c9070163535b0406a39fdbbdf.jpg)

![5.jpeg](https://stocke.fra1.digitaloceanspaces.com/prod_uploads/eb7efdbe25475b5ab8e319962a5cb7c7.jpeg)

## Market Analysis by [Marius Grigorica](https://ro.linkedin.com/in/marius-grigorica)
The demand for houses near Bucharest has increased significantly especially in recent years, after the beginning of the epidemic and the trend of working remotely. The demand comes mainly from young families, with children, with average incomes and who want to benefit from their own garden on the land, but also to have easy access to the city centre and its advantages.
As a result of the increased demand, the market has become quite buoyant. We present in the following table details of some potentially competing Smart developments in the Otopeni area.
 
 
![Proiecte concurente.png](https://stocke.fra1.digitaloceanspaces.com/prod_uploads/f2b910b460a6bb19bf2279d0b7b3c758.png)
 
In contrast to the projects mentioned above, Smart benefits from the following competitive advantages:
- more compact areas and therefore lower prices (approximately €125,000 selling price/unit);
- falls within the €130,000 threshold up to which 5% VAT can be applied. Above this threshold, from 2023 VAT of 19% will apply, which implies a significant price increase for competing projects, making them harder to sell;
- higher quality finishes;
- parking spaces included in the price;
- green space and children's playground of 450 sqm for residents.
 
## [Learn more about the Smart residential project by clicking here and start investing now!](https://www.stock.estate/ro/campaigns/smart-rezidential/description)

Project spotlight - Smart Residential

## What led us to accept Grand Chalet on the stock.estate platform?

Grand Chalet Poiana Brasov is the first project proposed on the Stock.estate platform, and not by chance. We chose this project as a pilot because the evaluation process showed it to be a great investment opportunity. 
 
Grand Chalet Poiana Brasov is a premium complex consisting of 7 villas on a 9,091 m² plot with an architecture specific to the mountain area, each villa with 14 holiday apartments, totaling 98 2-bedroom units, located just minutes away from the ski slopes of Poiana Brasov.
 
Stock.estate investors have the opportunity to contribute to finance the development with a total amount up to 200,000 euros, divided into 4 tranches, in accordance with the progress of the construction works and the evolution of the pre-purchase agreements.
 
The project is planned to be completed by December 2023. The first two buildings will be completed by the end of 2022, buildings 3 and 4 by mid 2023 and the last 3 in December 2023.
 
## Why Grand Chalet Poiana Brasov? 

## 1. Location
The major advantage of Grand Chalet is its location minutes away from Poiana Brasov, the most important ski resort in Romania, which has the most extensive ski area in the country and modern cable transport facilities (two cable cars, a gondola lift and multiple chairlift and ski lift installations).
 
Grand Chalet enjoys close proximity to the Stâna Turistică restaurant and access to the old road that connects Brasov to Poiana Brasov and allows for hiking or cycling.
 
In addition, just 15 minutes away is Brasov International Airport, which is scheduled to open around the end of this year.
 
## 2. Sustainability
Grand Chalet is an eco-friendly project, in this sense the complex will include a park and a vegetated area that will represent over 55% of the land area, and parking spaces for electric cars will also be provided.

The abundant vegetation complements the low density of buildings in the development area, creating an ideal atmosphere for leisure. All building materials come from the local ecosystem.

## 3. Project quality
The design is conceived in harmony with the location of the complex and its architectural line, the aim being to create a unique feeling for tourists who will want to stay in Grand Chalet: refinement, comfort and relaxation - in a premium mountain resort, ideal for unforgettable holidays.
 
Each apartment is equipped with a Smart Control system, which provides room temperature, burglar and water control systems. The terraces offering a special view of the mountains or the forest, the exterior insulation made entirely of basalt wool and the underfloor heating are some of the elements that will provide added comfort to those who choose Grand Chalet as a destination for their mountain holidays.

## 4. 15% annual return 
This level of return is high and difficult to achieve from other investment alternatives.

## 5. Solidity of the developer
The project is being developed by a team of two well-known and respected entrepreneurs in the Brasov business community. 

[**Learn more about the Grand Chalet project by clicking here and start investing now!**
](https://www.stock.estate/ro/campaigns/grand-chalet/description)

Project Spotlight - Grand Chalet Poiana Brasov

The Stock.estate team had the pleasure of participating in the Rubik Garage 2022 event and **was even the winner of the "StartUp Wise Guys Award" - an award given to innovative and promising companies.** Rubik Garage 2022 offered the chance to test the project, receiving expert feedback, and then demonstrate what change Stock.estate can bring to the real estate investment market.

**What is Rubik Garage?**

Rubik Garage is an accelerator programme, which aims to support CEE startups. Rubik Garage helps early-stage startups reach their first active customers, attract investments or go international.

Stock.estate is one of 22 startups selected in the Rubik Garage Accelerator 2022 batch, out of more than 120 international applicants.

The accelerator kicked off with a Founders Bootcamp in Piatra Neamt. Four months of acceleration culminated in a **"Demo Day"** in September, where startups, including Stock.estate, had the chance to pitch their startup to investors. For the startups that were awarded, the journey will continue over the next 6-12 months - with the Rubik Garage team providing full support to help them raise an investment round and scale up.

**How is Rubik Garage 2022 helping the Stock.estate platform grow?**

- Rubik Garage 2022 has opened up the potential for collaborations between Stock.estate and other start-ups whereby both the platform and Stock.estate investors will benefit from a more complete experience.

- The Stock.estate team was able, through participation in Rubik Garage 2022 and through various conversations with the target audience, to better understand the needs of investors and how to shape the most enjoyable experience for them.

**What are the next steps for you?**

You can now invest in real estate wherever you are. Registering on Stock.estate only takes a few minutes, thanks to the whole digitised process. Once you have registered, you can access more details about each crowdfunding campaign on the platform and start investing by booking the projects you are interested in.

At the moment, it is possible to book projects available on Stock.estate, allowing an investor to secure a place in the campaign for as little as €10. To reward this commitment, Stock.estate offers an additional €10 as a bonus until the actual investment is completed.

Find out what attractive investment opportunities are available [**by clicking here.**](https://www.stock.estate/#campaigns)

Successful investments, Stock.estate team

The Rubik Garage 2022 experience 

Thinking about a new investment? Maybe you should consider real estate crowdfunding – a new way to diversify your financial portfolio, easier, faster and more accessible.  Through crowdfunding, you can pool your money online, alongside other business partners or friends, and invest in properties together.

If you want to learn more about real estate crowdfunding and what are the advantages of this type of investment, here are the answers you need!

**What exactly is real estate crowdfunding and how does it work?**

Many people are seeking to accumulate or grow their wealth through buying an investment property.
But acquiring real estate is not something that you can do in a few days, prospective property owners need a large amount of capital or to qualify for a bank loan. Moreover, most of the investors have to make a large up-front down payment, to finance routine expenses in the form of regular ongoing bills. And another thing added on the list is the fact that the owners must also regularly upkeep and maintain any investment property holdings, pay for maintenance and utilities, and pay annual property taxes on these assets.

So here comes the solution - real estate crowdfunding - where investors pool their money using online financial technology (fintech) or crowdfunding sites to fund real estate investments, with an eye toward making an eventual profit.

With real estate crowdfunding, everything becomes easier. With a few hundred euro you can start investing in real estate, together with your friends, business partners, or other family members. Where is your money going? The payment is going to financial vehicles, which serve as holding companies that own and operate various real estate investments. As an investor on crowdfunding platforms you can choose from a variety of properties across all asset classes, both residential and commercial.

**What are the advantages of real estate crowdfunding?**

Real estate crowdfunding has its advantages and disadvantages, like any form of real estate investment. So, before committing funds to a crowdfunded real estate project, it’s important to consider all your options and to take into consideration the following advantages:

**Exclusive market**

On the crowdfunding platforms you can have access to unique real estate projects and opportunities, and you can find a more exclusive private market, with property investments that may otherwise be unavailable to general audiences.

**Small investment size**

Do you want to start your investment in real estate with as little as €100? Now you can do it! Real estate crowdfunding provides you with the opportunity to become a real estate investor due to the small entry ticket. So, you no longer need to have thousands of euro in your account to start investing in real estate. Now you can start your journey into real estate investing, with a small amount, just to “test the water”.

**Diversify your portfolio**

As you may know, diversification is a very important factor that can impact your real estate investments. Multiple areas of the real estate market can perform very differently from one another. So that’s why you have to take in consideration the real estate crowdfunding that is offering the opportunity to diversify your investment portfolio very easily, picking different properties, located in different areas, or even different asset classes.

If you put all your money (let’s say €100,000) into one real estate property, and that investment failed entirely, you would lose €100,000. But if you had invested that amount across say five investments, and one failed, you would only lose €20,000.

But, besides all these advantages, you have to take in consideration the weak points too. If you want to have full control over your investments, real estate crowdfunding may not be for you. When you make a real estate investment via crowdfunding, the property will be managed by someone else entirely. However, more traditional forms of investment provide investors with the ability to manage the project. If you have managed real estate before and you believe you can keep doing this, maybe a traditional form of investment will allow you to have more control over the property, which can typically make it easier to get the returns you are looking for.

If you want to start investing in real estate through crowdfunding, you will first need to select a crowdfunding platform to join, and one option could be Stock.estate. One principal requirement that you need to consider is the minimum investment amount required by the crowdfunding platforms, but also the type of properties you want to invest in. While some platforms come with a minimum investment amount of only €100, others require minimum investments of €100,000.


The advantages of investing in real estate crowdfunding

For new investors, foraying into the equity market can be a challenging experience. The entire stock market is a complex entity, but once you understand all the rules it functions by, you will find the best investment opportunities to make your money grow. And the first step for achieving the investor's financial goals is to understand the basics of equity investment. 

What are equity investments?
### 
The simplest way to understand the equity investment is to see it as fundraising activity, started by a company. Basically, instead of choosing a business loan, a company can collect money from the general public. In this way, the investors can buy a partial share of the respective company, and this is ultimately what’s known as an equity investment. Once shares are purchased, the investor will receive a dividend of the profits earned by the company.
An equity investment is an amount of money that is invested in a company by purchasing shares of that company.

Why you should consider equities
### 
The equity investors purchase shares of different companies, with the expectation that their value will rise in the form of capital gains, and they will generate capital dividends. In this way, if an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the company's assets are liquidated and all its obligations are met. Equities can strengthen a portfolio’s asset allocation by adding diversification.

Investing money or capital is a major decision in anyone’s life. The whole idea behind investing money is to create an additional source of income and to generate a sizable amount of wealth for your future that grows overtime and appreciates in value. It is therefore important to understand the first steps of this arduous yet rewarding journey.

It is important to understand your investor personality. For example, you can ask yourself what kind of investor you want be and how much risk are you willing to take. Answering these questions will help you decide what kind of investments you want, and more importantly, it will help you to envision your long-term wealth goals.

If you are a first-time investor, it is better to work on a plan that focuses on your short and long-term financial goals. This investment strategy will help you to align better your needs and goals. Also, investing is only possible with discipline in other areas of your financial life such as monthly savings. 
After making an investment, some people feel comfortable and forget about it. But, for someone new on this market, it is important to track how your investments are doing.

Now that you know what equities are, let’s understand the various benefits that equity investment brings to the table. A potential benefit is the inflation-beating returns in the long run. With time, the inflation brings down the value of money, so you need to invest in an asset class that has the potential to trounce inflation.
Another benefit is the capital appreciation. If you invest in an equity share of a company with high growing potential, its price might appreciate with time. And the investors will benefit from this capital appreciation.

There are also some risks when it comes to investment in equities. For example, the price of your holding can fall, and if you sell at that time, you might incur a loss. But if you are a long-term investor the risk becomes lower.

The secret is to invest for the long term and to diversify your portfolio. Hold shares of different types of companies across industries. 


What are equity investments?

Real estate tokenization – what does it really mean? The tokenized real estate assets are essentially digital shares of properties launched and tracked on blockchain networks. 

In the last couple of years, more and more real estate firms started partnerships with established fintech providers to utilize digital shares (tokens) and alternative trading systems to facilitate their offerings and investor liquidity.

The tokenization of the real estate assets gives the investor control over when and how much of their stake they sell, but with the stability of a traditional real estate deal.

**What are the real estate tokens?**

Real estate non-fungible tokens (NFTs) do not directly represent physical parts of real estate in its materiality. Instead, they represent shares of a special purpose vehicle (SPV), this SPV being a company that holds the real estate property. Depending on the investment form, the investors have a direct claim on the cash flows from the real estate or even the land itself as holders of shares of the SPV. 

This mechanism ensures that investors are well-protected. Dissimilar to the underlying real estate, the sale of shares does not require amendments to the land books, making property-backed tokens faster and more flexible to transfer.

**What types of real estate can be tokenized?**

Like traditional real estate investments, the types of real estate that can be tokenized also vary, including residential or commercial property, and industrial spaces or retail spaces. As tokens are secured by physical assets, their value will fluctuate in line with the performance of the asset, similar to real estate investments but with the added convenience the blockchain technology offers, specifically the safe and frictionless storage and transfer of the tokens.

**The advantages of real estate tokenization**

Tokenization has the capacity to radically transform the global real estate market. It offers both issuers and investors a wealth of substantial advantages over the existing investment options, as well as opening up opportunities for a bigger number of investors to enter the market. Below we’ll consider some of the biggest gains that tokenization is bringing to real estate.

Tokenization in real estate has yielded the positive outcome of fractional and divisible ownership. The value of real estate has traditionally been indivisible as it is treated as a single asset. Tokenization makes it possible to fractionalize the asset, leading to greater access thereto and better liquidity of the investment.

The tokenization of real estate also brings a greater transparency. The blockchain is capable of recording each transaction that takes place on it. Whenever a single token undergoes a transaction, all the participants become aware of it. Therefore, investors can look at the token’s history, pricing, as well as other transaction details at any time.

Real estate tokenization – what does it really mean? 

The secret of a good investment is to diversify your investments portfolio. And Stock.estate gives you the opportunity to diversify your investments in residential and vacation rental properties.

When we select the investment opportunities for Stock.estate, we run every property through a rigorous list of criteria and filters and select the best ones. In this way we want to offer to our potential investors the most profitable investment opportunities in real estate, just a click away.

A risk profile for every potential property includes:
•	Liquidity Index of the property - how easy is it to sell this property, should it be necessary or profitable
•	Vacancy Index - how easy is it to find a tenant
•	Price Growth Expectation - the estimated price growth of a property of this type in this area.

All target projects we are choosing for our platform are carefully considered, selected and evaluated by our team. If we see problems with their experience and how they approach the business or the real estate project is not a good opportunity for Stock.estate investor’s community, we delay or refuse to list these businesses.

The duration of each funding period is set within the investment opportunity and differs in every case. If the total investment amount is not reached, the investment opportunity will be removed from Stock.estate platform and the funds will be returned to the investors.

If an investor changes his mind and he doesn’t want to invest anymore in one of the properties shared on our platform, he has at disposal a reflection period of four calendar days from the moment of submitting the offer during which the Investor is able to revoke his/her expression of interest to participate in the Fundraising without penalty and with no obligation to provide a justification. The request to revoke the offer should be sent to the email address team@stock.estate.

**Should I invest in a residential or a vacation rental property?**

These both types of investment have their own advantages. You can earn money from real estate investments either through regular rental income and real estate property appreciation.
Different types of real estate investments have different return expectations, depending on both rental income as well as underlying real estate appreciation.

Real estate prices are hard to predict, but real estate values have a historically high correlation with inflation and wage growth.
Generally, the expected rental income paid as dividends per year is about 8-10% for vacation properties and 4-5% for residential properties. The earnings coming from the lease are paid out as dividends to the investors. 

Furthermore, you benefit from the increase of the value of the property. Real estate developments have much higher return expectations, but so are the accompanying risks; you can expect a property value appreciation of 20-30% upon delivery.

How do we select the properties for Stock.estate?

All investments involve risk and the past performance of a security or a financial product does not guarantee future results or returns. Please keep in mind that while diversification may help to spread risk it does not assure a profit, or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.

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