It’s hard to believe, but savings interest rates have basically hit zero in Europe. If you think that’s depressing, consider this. Anyone with savings over 100,000 euros with a bank might have to deal with a negative interest rate.
Whatsmore, says financial journalist Janneke Willemse in Good Morning Netherlands , we are dealing with inflation. “That nibbles away at your money, so in ten years it will be worth less than now.” Which is why Willemse states that saving is riskier than investing.
Is this a temporary relapse? Can we assume that interest rates will rise in the short term? At the moment it is expected we will have to deal with extremely low interest rates until at least mid-2021. For example, even Europe’s Bigbank has recently lowered its interest rates and the Bigbank savings rates are among the highest offered in the Netherlands on savings deposits.
Investors are looking for alternatives
That’s why more and more Dutch people are looking for a different way to invest. Briqwise has seen a flood of investors interested in their investment model in recent months. “It’s a trend has been going on for a few years,” explains Guus Oerlemans of Briqwise. “Apart from the current incredibly low interest rates on savings, much of this interest is due to changes in the real estate financing market. Borrowers who want to purchase real estate are confronted with banks who do not want to provide business mortgages at the moment. So they’re looking for an alternative. It’s the same on the investors’ side. They’re tired of watching their assets shrink, or even evaporate, when they park it at a bank. So not surprisingly they are also looking for alternatives that yields something.”
More returns with certainty
“The type of investors that comes to us want good returns on their investment but are risk averse. We call them logical investors, – they’re definitely not the aggressive, opportunistic kind!” adds Briqwise partner Frank van Dongen. “They’re definitely not keen on risks. They want maximum security, preferably the same level of security and comfort as when they deposit money in a bank. But with more value – better returns – on their money.”
Briqwise offers that certainty and security but with a return that exceeds expectations. The investor provides a business mortgage to a borrower and in return receives the first mortgage as security, a low Loan-to-Value ratio and a guarantee of the monthly payments by Briqwise. The interest is 6%.
Clear communication and accurate information
“Many of our investors were suspicious at first” says Frank van Dongen. “Surely that’s too good to be true? It seems too easy! What’s the catch? – they would ask. But we don’t mind that. It’s very important that people know and understand exactly what they are investing in. There is always a risk to any form of investment. But we take the time to properly inform people. And as soon as they understand how our model works and how safe this method of financing is, they are reassured. Many want to close a deal immediately and ask us the question: “So what have you got to offer?”
