Landex vs EstateGuru: What is the difference? Purpose, Returns & More
Comparison of leading land and property investment platforms in Europe
Overview
EstateGuru and LandEx are both property crowdfunding platforms because land is also a form property.
Property crowdfunding is a form of real estate and land investment that allows individuals to invest with small amounts of money. It works by pooling funds from multiple investors to finance a property development or renovation, then dividing the returns based on the amount invested. Property crowdfunding platforms such as LandEx and EstateGuru provide a platform for investors to browse and invest in various property and land projects and earn returns on their investment.
When it comes to LandEx vs EstateGuru, the purpose and country coverage of the platforms may differ, and investors should consider these factors when choosing which platform to use. In terms of investment returns, both platforms generally offer higher returns than traditional savings accounts or bonds, but investors should also consider the risks involved in property investment.
Landex vs EstateGuru: Purpose
LandEx allows the investor to invest in a small part of land, also known commonly as fractional investment and there is no chance of default. You will directly become a land owner.
EstateGuru invests in loans to property developers so it serves a different purpose.
Landex vs EstateGuru: Investment Returns
One should consider the following factors when investing in land and property investments:
1. High Returns - land investments offer potentially high returns compared to other traditional investment options. Investors can earn interest rates of up to 12% or more on their investments. On LandEx, the land price can potentially even grow higher as much as 20% during the times of high inflation so it could be a more lucrative investment over the long term.
2. Diversification - investing in property loans provides diversification to an investment portfolio. It provides an opportunity for investors to spread their investments across different types of properties and across different geographies, thereby minimizing risks.
3. Collateralised Investment - investing in both land and property loans is typically secured by collateral – land or property. This helps to minimize risks and add a layer of security to the investment.
4. Passive Income - investing in property loans provides an opportunity for passive income. The investors can sit back and earn interest on their investments without being actively involved in the day-to-day management of the properties.
5. Ease of Investment - investing in property loans through online platforms like LandEx or EstateGuru is more accessible and convenient than investing in physical properties. Investors can choose to invest in multiple properties with as little as 10 EUR (Landex) or 50 EUR (EstateGuru), and the entire process can be completed online.
Landex vs EstateGuru: Country Coverage
Currently EstateGuru offers broader country coverage than LandEx, as it is an older platform. But you may still want to consider investing in both for diversification purposes as discussed above.
Verdict: Is Landex Better Than EstateGuru?
Regarding the question, "Landex Better Than EstateGuru?" It depends on the individual's needs and preferences as both platforms offer slightly differences services, and both good alternatives to riskier investments such as the stock market.