Intrea launches a unique platform with screened real estate investments abroad

The real return, transparent, open and honest

Intrea is a new portal for real estate investments characterised by transparency based on extensive knowledge and experience. Co-founder Rob Smulders built this up as the figurehead of Mondi, the interest group for prospective buyers of foreign real estate. Mondi's success is based on the need for transparency. This necessity is and will still be great and will now be extended within Intrea. Together with co-owner and graduated chartered accountant Patrick Pijnappels, Intrea selects fully screened real estate objects and projects and offers investors the opportunity to successfully invest in them. This is done via a unique platform: beleggeninvastgoed.eu and starts with a selected offer in Austria.

Initiator Rob Smulders has been active in the world of international real estate for years. Years that he describes as an "interesting journey" started in 2001 with "Immo International Magazine"; a magazine for international real estate, housing and living. In 2005, 'Mondi' arose from this, an interest group that provides members with information to successfully purchase a (second) home or investment object abroad. “The editorial staff received many questions, varying from small practical problems to situations with major financial and emotional consequences,” says Smulders. “I thought that we should provide people with more preventive information to avoid problems. But then from an independent interest group.” This turned out to be a great success. Mondi has since been monitoring the international real estate market and has put thousands of investors and private home buyers on the right track. “When I look back on the mission now, I am proud, because it is still solid. Many independent organisations now see us as an authority in the field of buying and living abroad.”

Legal, financial and practical consequences
Mondi's success is not surprising: whether they are in the orientation phase, buying or selling a home; owners of a home or investment object abroad have many questions and want to know what legal, fiscal, financial and practical consequences their decision will have. This is also the case with Patrick Pijnappels, co-initiator of Intrea. Pijnappels made a career as a chartered accountant in the financial world at Ernst & Young, among others. As CFO and director of automation, he was also involved in the successful growth of an Amsterdam stock exchange trader. He then followed his passion as a self-employed IT entrepreneur and for several years as a real estate investor. "I have been coming to Austria for years and have a click with the country," says Pijnappels. "But when I started looking into buying property there, I ran into aspects that raised questions. When is the purchase price in line with the market? How do you get in touch with the right estate agent, lawyer, or notary? Or a rental agency, for example? In search of that information, I soon ended up at Mondi and got talking to Rob." He immediately saved him from making a bad purchase. Pijnappels is already in an advanced stage of purchasing a chalet that he also wants to rent out. Despite explicit confirmation by the local estate agent, further investigation revealed that the property only had a residential designation, a so-called 'Hauptwohnsitz'. Smulders: “Local governments often restrict sales to foreigners or draw up regulations. This is mainly because many foreign chalet owners use or let their property for a few weeks during the winter, and the rest of the year, the chalet is unused. Understandable, but it is, of course, important to be aware of this.” The transaction is cancelled, and after a joint search with Smulders, Pijnappels successfully invests in another project that does meet his requirements.
A transparent purchase is not self-evident
The process makes Pijnappels think: “A transparent purchase of real estate should be self-evident,” he says. “But apparently it isn't. As a prospective buyer or investor, you act too quickly in good faith. This leaves room for judgment errors due to different rules, cultural differences, language barriers, and laws that may differ per region. There are too many snags that investors are not made aware of. A lack of time to truly immerse yourself is an important factor.” At the same time, he sees opportunities. "Considering my business and financial experience, if I almost misjudged, then so will other potential investors." Pijnappels sees opportunities for a real estate provider with access to the right local parties, with knowledge and experience, and who operates with transparency so that there are no surprises. “Basically, a translation of my needs when I started the process and completed it with Rob,” he explains. "That is where the base for Intrea has been laid." From his IT background, he also sees opportunities for an online platform on which qualitative and fully screened real estate is selected and where suitable objects are presented to investors through an extensive drop-down menu. “But that also provides background information, shares knowledge through an extensive network of renowned experts, presents legal assessment reports and provides insight into the truly realistic expected return on an annual basis,” says Pijnappels. This is now being realised within the first accomplishment of Intrea, the platform: "Investing in Real Estate".

An extension of Mondi
Such a proposition requires in-depth know-how of the international and local real estate market. The knowledge, experience and network that Mondi has built up over recent years are linked to Intrea. “I see Intrea as a logical extension of Mondi”, says Smulders. “I have personally guided Mondi members, where necessary, for years in their search for a second home or real estate investment. Based on that experience, I previously had the idea to expand this into a selected portfolio. But I thought the risk was too great to have parties offer investment objects without exercising extra control over this. Now the time has come. The combination of our experience, know-how, financing and renewable energy is brought together within Intrea. ” When asked, the current situation in the international real estate world also appears to be an important factor behind the initiative. “Naturally, the demand for investment real estate is very high at the moment,” says Pijnappels. “Due to low interest rates, people are looking for alternatives to make a return. That is why more and more people are investing in international real estate.” In the meantime, we are starting with real estate in Austria. Other European countries are expected to be added at a later stage. Austria appears to be one of the most popular countries to purchase real estate as an investment object. That's because the country is both a winter and summer destination. But also due to the stable market with limited supply, high demands in the field of architecture, construction quality and tax benefits. According to Pijnappels, the Netherlands does not levy wealth tax on foreign BOX3 real estate. This makes a holiday home in Austria extra attractive.

Austria in demand
“Ninety per cent of Dutch buyers in Austria do this from an investment point of view,” says Smulders. “But due to the boom, much of what is on offer is not always a good investment. Especially if it turns out that the purchase price is far above the market price. In Austria, the profession of a real estate agent is bound by legal rules and sound professional training, yet potential buyers are massively misinformed. This is partly due to ignorance.” For example, foreigners who want to buy real estate in Austria must first have permission from the provincial government. This permission is required to register real estate in the name of a foreigner in the land registry. Each Bundesland in Austria has separate legislation concerning zoning. In addition, there are specific rules that allow exceptions to general law. Also, the same concepts are sometimes used in different laws, which can have other consequences, such as not being allowed to rent to tourists or necessary renovations to the house. Smulders: “In practice, mainly Austrian real estate agents and business-related lawyers and even notaries underestimate the problem. This is especially the case in small communities, where professional parties pass the ball to each other.” Transparent and focused on the long term
According to the initiators, the main objective of Intrea is that investors get what they sign for. Pijnappels: “We mediate in real estate, but we sell security and transparency. As an investor, you are almost always dependent on third parties. And your return is ultimately subordinate to the interests of the selling party. Or the developer who miscalculated his project and therefore continues to lower the yield forecast. We want to change that. By offering unprecedented certainty and transparency in advance, regardless of where and through whom you ultimately invest.”This concretely means that all real estate that Intrea offers via the website has been screened. The realistic price, no hidden costs, legally and fiscally safeguarded, the right permits, insight into the development plan, environmental report, construction in order, including project management, maintenance, rental management and everything based on a fair rental yield forecast.

Smulders and Pijnappels are the only shareholders who have an independent position and can determine their own policy as management. For the future, this policy aims to expand the relationship with its investors through objective service aimed at the long term and not at achieving short-term successes. “We are convinced that there will be more interest in the way we assist our clients. We expect to expand and grow the range internationally in the future. But, growth that results from the focus on quality service.”

www.beleggeninvastgoed.eu
www.intrea.eu