Estonian property marketplace Reinvest24* will launch its secondary market (buying and selling among investors) next week. On Reinvest24 investors can invest into the equity of property and then participate on monthly rental payments and potentially capital gains at exit (if the property is sold).
The secondary market feature had been first announced more than a year ago, but has been postponed several times. Now I was given access to the demo system, where I could try out the feature with a test account. Main parameters of the secondary market are:
- seller can list parts with discounts, premiums or at par
- buyer pays 1% transaction fee
- seller can list any shares they own (including those where payment is overdue or in default)
- rental payments go to the investor holding the share at the time of payment (no split between seller/buyer)
In the buying process the investor gets visualized the shares on offer (‘reflection of the market state) for a project at different prices by horizontal grey bars:
If the investor then decides to buy parts it looks like this:
At the time of my test, the demo version lacked filters, but Reinvest24* will add the ability to filter soon. The concrete launch date has not yet been set, but Reinvest24 expects it to be in the second half of next week.
I only have a small investment amount at Reinvest24 to gain first-hand experience with the marketplace. My investments there have performed satisfactorily so far through the pandemic.
While the features for the market are very basic it allows for increased liquidity for those investors that want it.