You can expect two different returns in real estate: the rental income and value appreciation. Both are different: the rent can be regarded as a passive income, an amount you receive every period, while the appreciation is the potential profit you earn at the point of selling your investment.
We pay out the net rental income (i.e. the total rental income minus all operational costs) quarterly. This is proportionally distributed to all investors based on their percentage of in a given property. On the investment page of each property, you will find an estimate of the rental income expressed as a % on your investment. As an investor, you will receive a detailed and transparent overview of the rental income every quarter with your payout.
When the value of the property changes over time, this will be reflected in the value of your investment. Each year we do an independent appraisal of the property to determine its current value. It is impossible to predict the future and just like the stock market, the housing market has known both ups and downs. But if you look over the long term the housing market has demonstrated strong returns: since 1949, the housing market in the Netherlands has increased in value by an average of 5.4% per year (see chart).
Here you can find an overview of the performance of our properties in the third quarter of 2022
Important to understand that returns in real estate are not guaranteed and the actual pay-outs will be dependent on the actual net income of the investment and the actual value of the property at the time of sale. As like with all investing, there is risk involved. Read more on the risk associated with real estate investments.