The project Avalon by Homunity

Review of the project Avalon by Homunity

Review's score :

Score details

To assign the grades A and E, we use a Bonus/Malus system.
⚠️ Some criteria may be missing in the detailed list below.
⚠️ The scoring model is not suitable for all types of projects.
The total points for this project is 11

Criteria	Points
mortgage coverage	∅
optimistic scenario margin	∅
pre-commercialization	🟩
track record	🟩🟩
location	🟩
in the vicinity	🟩
yield	🟩
LTA	∅
LTS	🟩
operator commitment	∅
sales price	🟩
permanent loss	🟩
late projects	🟩
price trend	∅
urban planning risk	🟩
debt to equity	∅
debt to asset	∅

This review is proposed by Grégory Vaur on 31/07/2024

⏰ The project starts on 31/07/2024 20h00
💰 The estimated rate of return is 10% per year.
⏱ The duration of the project is 18m
💼 Minimum amount to invest is 1000€

🤖 Review's summary

Project Analysis of Avalon at Homunity by Grégory Vaur

Project date: 2024-07-31 20:00:00
Global review: Weak guarantees, very experienced operator, great location near the historic center of La Rochelle, 18 lots reserved out of 47, coherent initial price, significant work, and slightly low margin in case of discount.

Description

It involves refinancing the operator's equity following the acquisition of land on which an real estate complex will be built, consisting of four buildings with 47 housing units, including 15 social housing units and 51 parking spaces, totaling 4089 m².

Localization

La Rochelle is a city of about 78,000 inhabitants located 67 km from Niort.

Highlights

✅ 10% Yield -> high.
❗Below the average yield (10.5%) of recent Homunity projects.
✅ Guarantees: Joint guarantee, Financial Completion Guarantee, Pre-sale: 38% pre-sold with suspensive conditions: construction completed.
❗ Operator's Health: No detailed balance sheet provided.
✅ Location: City with more than 10k inhabitants, close to the La Rochelle Aquarium, historic center, restaurants, university, and more.
✅ Realistic exit price (5999€/m²), close to the average price (5929€/m²) from reliable sources.
❗ Price trend in the area: Slightly declining by 1% over a year.
✅ Optimistic Scenario Margin: 9% -> decent. Pessimistic Scenario Margin: 4% -> a bit low.
✅ New property after works, no urban planning risks, construction works ongoing since December 2023.
✅ Experienced operator with over 1,500 completed units. No known delays.
❗ High Loan to Acquisition ratio (158%), low Loan to Sale ratio (37%), reasonable Loan to Construction Cost ratio (82%), operator's commitment: 5%.
✅ Homunity platform quality: Low delays (3.09% more than 6 months) and no permanent losses.

Overall Opinion

In conclusion, while the project may present some challenges, such as low margins in case of discounts and slightly declining prices in the area, the experienced operator, great location, ongoing construction works, and the solid guarantees provided make it a promising investment opportunity. The high yield, low platform delays, and bonus offering of free access to the Objectif-Renta investor club further enhance its appeal. Investing in Avalon at Homunity seems like a smart and potentially rewarding choice for those looking to diversify their investment portfolio and support a thriving real estate project!

Historial rates of return Homunity

Investor votes results for the project: Avalon

33 voters
👎36% 👍15% 🤷12% 🏳️36%
To vote :

Grégory Vaur
Grégory, I am 26 years old and have been an investor in real estate crowdfunding, stock markets and crowd-lending for around 1 year. I trained myself by watching videos on these subjects. I am currently registered on the first brick, Clubfunding, Raizers...