LandEx platform review.

LandEx is a pioneering land investment platform based in Tallinn, Estonia, and the first of its kind in Europe. It offers both retail and institutional investors the opportunity to invest in plots of land. LandEx aims to democratize land investment, recognizing land as a valuable asset class that can provide high-yield and low-risk returns. The platform believes that land investments should be accessible to anyone interested in diversifying their portfolio and benefiting from the potential growth of land values. With a finite supply of land available, its value has the potential to appreciate rapidly, making it an appealing investment option for investors.

How does investing on LandEx work?

LandEx has devised a unique approach to enable investors to participate in land investments despite the legal limitations of fractional ownership. Instead of directly owning the land, LandEx offers investors the opportunity to purchase loans collateralized by the land. When investing with LandEx, you acquire a loan that reflects the value of the corresponding land plot. As the land price appreciates, the value of your asset increases accordingly.

In practical terms, investors hold fractional investments tied to specific land plots through loan agreements. The interest earned on these loans is directly linked to the asset's value. LandEx's objective is to provide investors with an experience as close as possible to land ownership. However, due to the legal constraints surrounding the fractionalization of land, LandEx cannot offer ownership in the company that owns the land. The regulatory costs associated with such ownership arrangements would be prohibitively high.

To overcome this challenge, LandEx has adopted a crowdfunding model using loan contracts for investment. These loan contracts have variable interest rates that depend on the asset's price, allowing investors to benefit from the full appreciation of the land's value. Since the land is not burdened by any other loans, the risk of bankruptcy is eliminated. Additionally, the loan investments are secured by a mortgage held by a collateral agent specifically designated for the respective land plot.

LandEx profitability

Investors can generate income through two primary sources when investing with LandEx: land appreciation and cash yield. Land appreciation refers to the increase in the value of land over time, driven by its scarcity and inherent value as an asset. Cash yield, on the other hand, involves generating revenue directly from the land itself. This can be achieved through activities such as renting out the land to farmers or exploiting its resources, such as timber.

LandEx aims to deliver attractive returns to investors, with average annualized net returns of around 13%. This figure stands above the industry average in the crowdinvesting sector. On the LandEx platform, investors can benefit from both capital appreciation, which results from the revaluation of the land, and periodic dividends stemming from the income generated by utilizing the land in various ways. The specific returns will vary depending on the individual investment case and the performance of the underlying land assets.

LandEx security

At LandEx, investors have the opportunity to acquire fractional shares of loans that represent ownership in a specific piece of land. Each loan is tied to a particular land plot, which has been carefully evaluated and chosen by the platform's team of professionals. LandEx operates within the realm of secured crowdlending, specifically utilizing mortgage guarantees. In this context, the land itself serves as the underlying real estate asset that acts as collateral for the loan. By offering such mortgage-backed investments, LandEx provides an added layer of security for its investors.

Investing with LandEx

Getting started with LandEx is a quick and simple procedure. You can sign up by filling out a brief registration form and verifying your email address. Once these steps are completed, you will become a registered user, granting you access to more detailed information about investment opportunities. It's important to note that the registration process is completely free, and there are no obligations or commitments associated with it.

LandEx welcomes investors from countries that are members of the European Economic Area (EEA), as well as citizens of the United Kingdom. As for the minimum investment amount, it is set at €10, allowing individuals to start investing with a relatively small sum. LandEx collaborates with top-notch land management firms that ensure the proper care and appreciation of the land assets.

LandEx auto investing

LandEx offers a convenient auto investing feature that allows investors to automate their investments according to their preferences. By utilizing this feature, investors can select the variables that align with their investment goals, such as land type, country, expected returns, and cash income percentage. Once these preferences are set, LandEx takes care of executing the investments on a daily, weekly, or monthly basis, providing a hassle-free investment experience for users.

LandEx secondary market

LandEx boasts a highly active secondary market that enhances the liquidity of investments. Through the secondary market, investors have the opportunity to buy and sell their investment positions, providing them with the flexibility to adjust their portfolios as needed. This active marketplace adds an additional layer of liquidity and enables investors to manage their investments more effectively on the LandEx platform.

Risk management

When investing in LandEx, it's important to be aware of certain risks associated with the platform. One of these risks is price volatility, although land prices generally tend to be more stable compared to other asset classes. LandEx benefits from current global trends supporting land investment, and its transparent and sustainable approach helps mitigate the risk of significant price declines.

Another risk to consider is liquidity. Liquidity refers to the speed at which an asset can be bought or sold. While typical land sales in the markets where LandEx operates take place within a timeframe of 3 to 30 days, it's important to understand that the process may require some time to complete.

The third risk is management risk. Productive agricultural properties require professional management to ensure their optimal performance. LandEx has established partnerships with reputable land management firms that specialize in caring for the land plots, reducing the management risk for investors.

By understanding and evaluating these risks, investors can make informed decisions and take appropriate measures to mitigate any potential challenges associated with investing in LandEx.

Liquidity or how to exit an investment?

Exiting an investment on LandEx provides investors with various options based on their preferences and timing. Here are the three available options:

• Exiting at any time: investors have the flexibility to sell their investments on the secondary market whenever they choose. This option provides liquidity, allowing investors to exit their position before the completion of the investment term.
• After 12 months: LandEx aims to enhance liquidity by relisting the investment listings on the platform after 12 months from the initial listing. At this point, the price of the relisted investment will be determined by the market. Investors can decide to exit their investment at the new price or choose to remain invested if it aligns with their investment strategy.
• Final Exit: if an external buyer expresses interest in purchasing the land at a price above the market value, LandEx will sell the land. Once the sale is completed, investors will receive their respective shares in cash, allowing for a final exit from the investment.

These options provide investors with flexibility and choices when it comes to exiting their investments on LandEx, enabling them to align their decisions with their investment goals and market conditions.

Summary of LandEx

LandEx stands as the pioneering crowdfunding platform in Europe that specifically caters to investing in plots of land. From its inception, LandEx has prioritized the needs of investors, offering a user-friendly platform with a remarkably low investment minimum. Notably, LandEx provides a highly active secondary market, ensuring ample liquidity for investors. Moreover, the platform offers multiple exit strategies for investments, granting investors the flexibility to tailor their investment journey according to their preferences.

Investing in land presents an opportunity for high yields and low risk. The finite nature of land contributes to its rapid appreciation in value, making it an attractive investment choice. With LandEx, investors can explore the potential of land investment while aiming for an impressive average net return of 13%, surpassing the industry average. If you seek to invest in land and achieve above-average returns, LandEx emerges as one of the top options available in the market.

LandEx summary

Advantages:

• Exceptional above-average net return of 13%: LandEx offers investors an opportunity to earn an attractive and competitive return on their investments.
• Exclusive focus on land investment: unlike many other investment platforms, LandEx specializes in offering investment opportunities exclusively in land, allowing investors to explore this unique asset class.
• Low minimum investment requirement: with a minimum investment starting at just €10, LandEx ensures accessibility and enables a wide range of investors to participate.

What to consider:

• Limited geographic diversification: as LandEx primarily focuses on the Estonia land market, investors should be aware that their investments may lack diversification across multiple geographic regions.

Overall, LandEx provides the advantage of a high net return, exclusive investment opportunities in land, and a low minimum investment requirement. However, investors should carefully consider the limited geographic diversification offered by the platform.