If you want to calculate return on investment of Realvest bonds you need to consider bond specific annual interest rate and premium. Interest rate is guaranteed quarterly income and it is visible on the bond and known before the bond purchase. On the other hand premium is a share of the bonds underlying property appreciation and it can be known only after maturity date.

The whole structure of the bond profitability should resemble the real property ownership. The way real estate usually generates profit is through its rental capacity and appreciation. Annual interest rate is paid out of the rental income of the property and it can be projected with some precision. Premium is paid out of the property appreciation which is hard to precisely predict, that is why this part of the Realvest bond ROI holds more risk.

The best way to present the bond ROI is through an example. We will use some made up property for the purpose of explaining the ROI features that are expected with Realvest bonds. Let's say that the bond's underlying property has a full price of 200.000 €. We are buying the property in the area that has a steady real estate price growth of 10% a year in the last 10 years. So we expect this property to appreciate at least 59% in the next 10 years. What would be the break down of the ROI for the bond on this property with maturity period of 10 years?

• Bond price: 500 €
• Annual interest rate: 3.5%
• Full interest rate amount: 175 €
• Property net appreciation: 100.000 €
• Bond appreciation premium: 125 €
• Full bond profit: 300 €
• Bond ROI: 60%
• Bond annual ROI: 6%

Our team is committed to find the most profitable properties for our users. Generally we will issue bonds that have at least 3% annual interest rate and we are looking for properties that can grow in value at least 4% a year.