Estateguru Review 2024

 

 

Review last updated on 14/01/2024

Estateguru has been around for almost 10 years and is well established real estate investing peer to peer lending platform. Since 2014 almost €800 million worth of real estate projects has been funded.In it’s entire history of operations only 0.01% of the entire portfolio has been written off (€ 40 121). You can see historic performance below.

Estateguru total historical loan portfolio as of 14/01/2024

However, over the last 2 years there have been significant increase in default rates across all markets mostly in particular due to poor risk management in Germany and degrading economical factors globally.

In Germany default rate has been sitting around 90% for the whole 2023 and it is not clear when more recoveries will be done.

Estateguru outstanding loan portfolio as of 14/01/2024

It should be noted that default rate has remained above 40% throughout 2023.

 

What type of loans are offered on the platform?

Estateguru loan types distribution as of 14/01/2024

 

Development loans – is a loan that it used to finance the development’s planning process or the development/construction of the property itself.

Bridge loans – is a short-term loan used to meet current obligations before securing a permanent financing option, enhancing the value of the property or selling the underlying asset.

Business loans – is a loan that is used to raise capital for supporting the day-to-day activities of the firm, business expansion, acquisition of equipment or goods, cover pending obligations (taxes, etc.).

 

All type of loans have a mortgage on real estate as collateral, and the collateral’s can be divided into three types – residential, land and buildings under construction and commercial.

Estateguru historical loans by country as of 14/01/2024

In terms of loan distribution by countries then at the time of writing these are Estonia, Lithuania, Latvia, Finland and also to smaller extent Portugal, Spain and Sweden.

The platform no longer lists loans from Germany as they are focusing on fund recovery from that market but as soon as situation improves they will offer loans from Germany as well.

 

My personal experience

 

I have been using the platform for more than 4 years now with just over €4000 invested in and overall the performance was generally good up until late 2022, however, the performance has been getting considerable worse throughout 2023.

It should be noted that there was no month where I did not received any interest but it fluctuates quite a bit.

However, the number of defaulted loans in my current outstanding portfolio has increased significantly to almost 60%.

 

When looking further in my outstanding portfolio. Current situation looks as follows:

Current loans – 9 (all in Baltic states – Estonia, Lithuania and Latvia)

Loans that are between 4 to 15 days+ late – 2 (Lithuania)

In default – 9 (Mostly Germany and Lithuania)

 

Currently defaulted loans in my outstanding portfolio as of 14/01/2024

Country distribution in my outstanding portfolio as of 14/01/2024

 

Conclusion

With 60%+ of current portfolio being either late or in default it is hard to be optimistic. On one hand the platform has been very reliable for many years up until the situation around Germany. But when looking at overall default rates and how they progressed throughout 2023, across all markets these have continued to increase. Therefore at this point of time I cannot recommend investing money in this platform until default rate drops closer to historical average of 10% across all markets. I have personally paused the investments on this platform and will be withdrawing any repayments until there is an indication that performance improves.

If you would like to find out what default rate and status is in each country you can go to https://app.estateguru.co/statistics then click on Outstanding portfolio, scroll down a bit then change to country you are interested in.

 

Default rates by country as of 14/01/2024 (Updated)

Default rates remain abnormally high across all markets, except Estonia.

However, the default rate there has increase as well from 2% in early 2023 to 10% in early 2024.

Lithuania was the only market that saw decrease in the last 6 months but by only 2%

 

Germany93.46 %

Finland53.80 %

Lithuania37.68 %

Latvia17.33 %

Estonia10.37 %

 

Historical performance record

Default rates by country as of 17/07/2023

 

Germany92.09 %

Finland47.65 %

Lithuania39.89 %

Latvia14.81 %

Estonia6.45 %

 

Default rates by country as of 10/03/2023

 

Germany – 81.72 %

Finland – 33.08 %

Lithuania – 19.39 %

Latvia – 3.86 %

Estonia – 2.18 %

 

 

If you have any questions or would like to share your experience feel free to drop a comment below!

 

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