Interview with Jeroen Spoor, Chief Investment Officer (CIO) at Build Finance:
Build Finance offers banks, insurers and pension funds an investment mandate in rental mortgages with a minimum investment of 100 million euros. Jeroen Spoor, Chief Investment Officer (CIO) at Build Finance, answers some frequently asked questions about investing in rental mortgages.
What are rental mortgages?
"Rental mortgages are loans to real estate investors with rental properties as collateral. At Build Finance we provide these types of loans between 2 million and 15 million euros to professional real estate investors, who focus on independent rental housing in the social rental and middle rental segment."
Why are rental mortgages an interesting investment for institutional investors?
"Regular mortgages have been a popular investment for insurers, pension funds and medium -sized banks in recent years. The shadow side of this success is that the return on these mortgages has become less attractive. The interest rates for rental mortgages are currently two to three times as high, while for example the capital seizure for Basel IV is only higher."
Is there sufficient demand for these types of loans?
"Yes! We have seen more than 300 million euros in applications in the first five months since our go -long. By adjusting our proposition something - in particular to better compete with the major banks - we can now honor more applications."
Are there any risks and if so, how does Build Finance deal with this?
“With the arrival of a number of new players on the market for rental mortgages, several providers have expanded their risk profile. They offer higher financing and lower repayments, which entails a higher refinancing risk. In addition, the housing market is of course under a magnifying glass in the Netherlands: there is a large shortage of affordable purchase and the shortage of affections and the deficit of payable purchase and the shortage of purchase and the Netherlands is a shortage of purchase and the Netherlands 'shortage and the deficit of paying and the Netherlands must have a shortage of purchase and the Netherlands' shortage and the shortage of purchase and the dental rooms and the for-the of purchase and the deficit and the in-house. Discussion at Build Finance, we will of course dedicate special attention to this, so keep an eye on our social media!
