defaults on Housers

I have been investing in Housers for more than a year now. My experience with Housers was negative at the beginning and then I have changed my mind and re-ranked it.

Now I have new experience – default. Defaults are usual in lending industry. The risks and how they are managed – that is what is interesting in this case: MARISMAS DE ODIEL

535k loan was taken with 11,5% yearly interest rate for period of 6 months on July of 2018. 3,5k of interest was paid.

The interesting part is that Housers asked every investor to vote what to do next.

Voting interface. I have chosen to prolong the contract

I like the idea that everybody is allowed to control their fate, but on the other hand, Housers, with 80+ of staff could prepare some analysis and give their opinion on what is better to do.

Another interesting about this Spanish default is that Housers outsource recovery of money for a hefty 12% + VAT fee. (additionaly Housers pays 1.5% from their pocket)

So investors in this project had two options:

  • A. prolong interest (with lower interest rate!!!)
  • B. give for management company the right to recover the debt.

Housers still did not answer me (email sent 05.17 and second 05.19), why the interest rate for prolonging loan was reduced.

Customer support is terrible. 3 emails sent. No reply. Phone call 3 minutes hold – no answer = promise to call me back.

p.s. Housers earned 8.5% on raising this loan.

Housers investment

I was very bearish on Housers, both as a platform and as equity investment, but as i had 1000€ in the platform after difficulties putting money there, I have invested in 4 projects and after one year i will try to see what the true return will be, as in my opinion.

One thing i see that is already missing in the system is AutoInvest, because i see that i will get monthly returns so i will have to re-invest it manually.

 

after acquiring 4 projects for 250€ I put them on resale immediately with 20% markup. And in my surprise someone has bought one of my projects and i made 18% return on one property in few months.