How do we determine the price of a BLOCK on our platform and how will you know the value of your BLOCKS at all times, and especially when you decide to resell them?
Let’s first come back to the financing of a building. It was said to be financed either 100% by the BLOCKERS, or 50% via the BLOCKERS, 50% via a mortgage. So let’s take the example of a building at €500,000. I have a 500,000€ building which is initially financed by 250,000€ by the BLOCKERS (YOU) and 250,000€ by debt (the bank). So I have €250,000 of equity for 25,000 starting BLOCKS, so my BLOCK is worth €10.
Every month, I have credit maturities which are reimbursed by part of the rents. If after a year or 2 years I decide to resell my building still at the same price at €500,000, then I would not have €250,000 of mortgage to repay but only €220,000 because I already have repaid €30,000 of credit. So my equity is now €280,000. My BLOCKS are now worth €11.20.
After 5 years, my building has increased in value. The property which was worth €500,000 initially is now worth €550,000. I end up with €50,000 in capital gains. I have 30% tax on the capital gain, i.e. €15,000 in tax to pay. There are only €200,000 of mortgages left to repay. I therefore have equity of €335,000 and therefore naturally my BLOCK has increased, and is now worth €13.40. (+34% only on resale without counting the rental yield)
Conclusion: my BLOCK, increases in value with the repayment of credit maturities. This repayment of my mortgage added to the increase in value of my asset, of my real estate, is how you will be able to earn money when the building increases in value and when the credit is repaid.
How do we know that goods are going up in value, and more importantly how much? Every 6 months, we will bring in an independent and sworn expert who will reassess the building in the area in which we have invested it. This building, which was worth €500,000, is not BLOCK alone that decides to upgrade it. After 6 months, the sworn expert comes by and tells us that the value of the building is now worth €550,000. This results in an increase in the price of your BLOCKS.
So you now know how the valuation of the BLOCK price works and what is particularly interesting in getblocks.co model is that you do not have to wait for the building to be sold to receive your silver. We have a market place and at any time you will be able to decide to resell your BLOCK. So, even if the building remains on our platform for 20 or 30 years, you have total liquidity because you decide when you want to resell your BLOCK and the price revaluation is done gradually on short period of 6 months.
Your opinion interests us
- Terms & Conditions BLOCK
- Terms & Conditions PSP
- Legal
- Confidentiality
- Careers
- Affiliates & Partnerships
LEGAL DISCLAIMER & WARNING
BLOCK is a « crowdfunding platform royalties » specializing in real estate business. An application for a real estate license, is being processing, including civil liability insurance as well as financial guaranteed insurance which legally authorizes BLOCK to handle funds on behalf of any third parties as part of its business activity. Revenue-based crowdfunding Royalties is a contractual regime based on common consumer and contract law. The Crowdfunding operation is not subject to a prospectus approved by the financial authorities or to the prior control of another organization responsible for the protection of savings. The Royalty Right does not constitute a financial instrument within the meaning of Article L.211-1 of the Monetary and Financial Code and the regulations relating to banking and financial canvassing do not apply. BLOCK is a company registered in XXXXX under the number XXXXXXX whose head office is located at 8 rue du Sentier, 75002 Paris, approved by the prefecture of Paris under number 16568
WARNING: Our offers involve certain risks and in particular the risk of total or partial loss of the sums invested. Moreover, past performance is not indicative of future performance, which means that just because our default rate is 0% does not mean that we will never have an incident on a property. If you have any questions about the risks associated with our projects or activity, contact us and our teams will take the time to answer your questions. Maximum effort has been made to make this website content authentic and to articulate all information with accuracy and relevance. Getblocks.co does not contain any financial or real estate investment advice or recommendations. Prospective BLOCK holders should obtain independent legal, financial, tax, accounting, or other advice to determine the potential benefits and implications involving BLOCK’s business. In no jurisdiction the BLOCK intended to represent securities. BLOCK is not a security but provides royalty rights. You should seek advice from a duly authorized independent financial adviser and ensure that you have the necessary risk appetite, experience, and knowledge before entering into transactions. BLOCK shall in no event be liable to any person or entity for direct, indirect, special, consequential, or incidental damages. Content on the BLOCK Platform does not contain advice or recommendations by or on behalf of getblocks.co