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Crowdfunding is the process by which individuals pool their resources to buy property or finance real estate projects.
Foxstone is a real estate crowdfunding platform: we bring investors together to give them direct access to Swiss real estate through co-ownership or crowdlending opportunities.
Investing through co-ownership means buying one or more shares in a property—existing and already rented out—to receive rental income.
Investing through crowdlending means lending money to help finance a real estate project, which could be building a new property or refinancing an existing one.
With co-ownership, you own a property and generate income.
With crowdlending, you lend money to a real estate professional and earn interest.
In real estate, crowdfunding offers significant advantages, and we at Foxstone are convinced that our commitment to providing quality service also makes a difference.
Until now, opportunities in Swiss real estate have been reserved exclusively for wealthy investors. With crowdfunding, Foxstone is lowering the bar, enabling private individuals to invest through co-ownership from as little as CHF 25,000, and through crowdlending from as little as CHF 10,000.
Foxstone takes care of all administrative, financial and legal operations. We manage the assets (in the case of co-ownership) and monitor the projects (in the case of crowdlending), enabling you to earn income while remaining truly passive.
In the current financial climate, real estate crowdfunding often yields higher returns than traditional savings products. At Foxstone, we aim for—and have consistently achieved—between 5 and 7% returns on both co-ownership and crowdlending investments.
We provide all the information you need to make an informed choice. You have access to detailed reports on the properties, projects, developers and financial terms of each opportunity. And if there’s anything else you’d like to know, just ask us.
Investing with FoxstoneFor co-ownership, the minimum investment is CHF 25,000.
For crowdlending, the minimum investment is CHF 10,000.
Co-ownership
Foxstone charges a commission at the time of purchase and charges a fee for managing the property:
Crowdlending
Foxstone charges the borrower an operational management fee, which is a percentage of the loan amount, variable depending on the terms of the loan.
Co-ownership
Rental income, net of all expenses, is paid quarterly into the co-owners’ bank accounts according to their shares.
Crowdlending
Interest is paid annually or at maturity. This information is specified in the description of each offer.
The main risks of investing in residential property are vacancy and renovation: empty apartments lower yields, and renovations can be costly.
The co-ownership model mitigates the risk of vacancy, as it is diluted across all the apartments in the building. Renovation risk is shared by all co-owners.
Example:
If you own an apartment and receive rent from the tenant, you lose 100% of your income when the apartment is vacant.
In the co-ownership model, if you own one or more shares in a 40-unit property, a single tenant represents 1/40 of your income (if all units were rented at the same price).
Foxstone takes these risks into account in its return projections and sets aside provisions accordingly.
Creating a free account on the platform by clicking here will keep you informed of offers as soon as they are published.
Investors should be aware that any investment carries a risk of partial or total capital loss.
Real estate investments also entail more specific risks, depending on the type of instrument: legal and legislative risks, financial risks, technical risks and commercial risks. That said, real estate—and Swiss real estate in particular—has a proven track record of resilience, and is arguably one of the most stable and predictable asset classes.
Foxstone recommends that all investors read the Risk Factors document, which sets out these risks, and seek independent financial and tax advice before making any investment decision.
Foxstone is seeking investment opportunities the price ranges of which vary between CHF 1 million and CHF 15 million for crowdinvesting in co-ownership and between CHF 2 and 30 million for crowdlending projects.
The legal framework setting out the eligibility criteria for investing in real estate in Switzerland is determined by the Lex Koller. The methods of application depend on the cantons, which are autonomous in their practical implementation.
To offer its customers a secure service that complies with the regulations, Foxstone has opted for a restrictive approach that protects it from any legal risks associated with the application of the Lex Koller.
To invest with Foxstone, you must therefore:
Be a Swiss national and reside in Switzerland
or
Hold a C permit and reside in Switzerland
or
Hold a B permit, reside in Switzerland and be a national of a member state of the European Union or the European Free Trade Association (EU/EFTA) and invest in cantons that allow it*.
In all cases:
* Each canton has its own rules and may impose additional restrictions, such as a limit on the size or use of the property. It is therefore essential to consult the cantonal authorities before making any purchase.
Each investment opportunity is subject to legal and regulatory constraints, depending on the canton. Some offers are open to companies under specific conditions. Requests are processed on a case-by-case basis.
In order to simplify the acquisition process, the investors sign a power of attorney which allows Foxstone to represent them in front of the notary to finalize the acquisition of the building in co-ownership. This avoids investors having to move to notaires in the different cantons in which they invest.
All information, documents and contracts are available at any time on the platform in your secure account. You can view, download or print them. You receive an activity and management report containing detailed information on the evolution of your investment quarterly. In addition, an online professional dashboard allows you to monitor your portfolio and calculate the exposures by investment type, geography, liquidity and many other financial ratios.
No. Returns can never be guaranteed. All the information displayed on the Website and through the platform as well as in all the investment documents is for information purposes only.
The capacity of an investment offer is allocated on a “first-come, first-served basis”. An investment is registered once the investor fills all the documents, is approved by the bank and transfers the funds on the escrow account.
We strongly recommend you to diversify your portfolio. This is why we propose buildings with various usages, in diverse geographical areas with a panel of financial instruments offering an optimal diversification and allowing to limit the systematic risk.
If the amount to be raised is not reached, funds already transferred on the escrow account opened for this purpose are returned to the investors.
For the time being, Foxstone does not invest in the opportunities offered on the platform. However, in the near future, an entity owned by Foxstone will co-invest in the proposed offers in order to insure a perfect alignment of interests with investors.
The amount of your subscription includes all the transactional expenses. These comprise the notary’s fees, the bank charges, the technical, financial and legal audit, the independent valuation and Foxstone’s fees. The investor has to bear the fees of the advisors he hired for an investment besides the notary costs for the certification of his signature.
Co-ownershipFoxstone maintains a network of institutional investors, private owners and brokers, giving it direct access to the heart of the Swiss real estate market.
The selection of properties is based on their ability to deliver stable returns within the risk tolerance limits set by our conservative approach.
Foxstone therefore applies strict criteria to minimize the risks associated with vacancy and dilapidation, retaining on average only 3% of the properties it evaluates.
These criteria are as follows:
Properties that meet these criteria are then subjected to in-depth analysis, including in-house technical, legal and financial reviews. These reviews are then compared to independent appraisals performed by reputable appraisal firms recognized in their field.
Technical Audit: Evaluation of the condition of the property and establishment of a preliminary budget for the investments required to maintain or increase its value. This allows us to proactively adjust the renovation fund.
Legal review: Review of all contracts related to the property (leases, insurance, maintenance contracts) to identify any legal risks—risks that we do not want to pass on to our clients or take on ourselves.
Financial Audit: Valuation of the property to ensure that the purchase price reflects market reality.
These steps allow us to make investment offers based on solid, transparent data. Foxstone can then select only those properties that meet the high standards required to hedge risk and maximize long-term return potential for our clients.
Each person who expresses interest in an offer will be given access to the following documents on the Foxstone platform:
To invest in a property, they must complete, sign and return the following documents, which are required by the mortgage bank and the notary:
For notarized documents, Foxstone has partnered with a notary public to provide online notarization.
Once these documents have been provided, it is possible to invest in Foxstone’s co-ownership offerings without further notarization, as long as the ID is valid.
* To avoid the need to visit notaries in the various cantons, investors sign a power of attorney authorizing Foxstone to represent them in finalizing the acquisition of the property.
No. This is a rental investment, not a primary residence.
For logistical reasons, we don’t arrange visits to properties prior to purchase. However, you will have access to photos, technical details and appraisal reports. All of these documents are included in the descriptions of our listings.
Co-owners receive quarterly the net cash flow from the property. It results from the rental income from which operating expenses, investment expenses for the improvement of the property and mortgage-related expenses are deducted. Below is an example of an annual account:
| Rental income | |
|---|---|
| Operating expenses | (Water, electricity, maintenance costs, insurance, property management fees) |
| Mortgage interest | Rate fixed for 7 years with a banking partner |
| Property tax | Varies according to the canton |
| Rental vacancy protection | Safety margin if an apartment stays empty for several weeks |
| Foxstone’s management fee (0.05% to 0.25% of the property price) | Monitoring of the management, quarterly reports and proposition of a strategy for the building |
| Net income | |
| Provision for renovation fund(or guarantee account) | Provision to perform the works |
| Amortization | Since the credit is relatively low, banks do not require an amortization |
| Distributed income |
At the time of sale of the property or when the investors sell their shares, they shall receive their invested capital in return plus any capital gain resulting for the appreciation of the property. Each investment carries a risk which can strongly impact the yield. Foxstone advises every investor to read the Risk Factors document, which summarizes some of these risks, and to consult a financial expert and a tax advisor for each investment. No guarantee whatsoever is given as for the reimbursement of the capital and the payment of dividends.
Once the property is acquired, each investor is registered as a co-owner in the land register of the canton where the property is located. This registration guarantees ownership through the existence of a real right.
A co-owner can obtain a certified extract of the co-ownership directly from the canton’s land registry to prove and enforce his rights. A copy of the notarized deed is also available in your Foxstone account.
Co-ownership is the direct purchase of a fractional interest in a property, with the purchaser’s name entered as co-owner in the land registry. The properties offered for purchase are existing, rented investment properties.
Co-owners receive their net rental income quarterly in proportion to their shareholding. They don’t have to worry about managing the property and realize potential capital gains when they sell their shares or the building.
The main risks of investing in residential property are vacancy and renovation: empty apartments lower yields, and renovations can be costly.
The co-ownership model mitigates the risk of vacancy, as it is diluted across all the apartments in the building. Renovation risk is shared by all co-owners.
Example:
If you own an apartment and receive rent from the tenant, you lose 100% of your income when the apartment is vacant.
In the co-ownership model, if you own one or more shares in a 40-unit property, a single tenant represents 1/40 of your income (if all units were rented at the same price).
Foxstone takes these risks into account in its return projections and sets aside provisions accordingly.
Foxstone maintains a network of institutional investors, private owners and brokers, giving it direct access to the heart of the Swiss real estate market.
The selection of properties is based on their ability to deliver stable returns within the risk tolerance limits set by our conservative approach.
Foxstone therefore applies strict criteria to minimize the risks associated with vacancy and dilapidation, retaining on average only 3% of the properties it evaluates.
These criteria are as follows:
Properties that meet these criteria are then subjected to in-depth analysis, including in-house technical, legal and financial reviews. These reviews are then compared to independent appraisals performed by reputable appraisal firms recognized in their field.
Technical Audit: Evaluation of the condition of the property and establishment of a preliminary budget for the investments required to maintain or increase its value. This allows us to proactively adjust the renovation fund.
Legal review: Review of all contracts related to the property (leases, insurance, maintenance contracts) to identify any legal risks—risks that we do not want to pass on to our clients or take on ourselves.
Financial Audit: Valuation of the property to ensure that the purchase price reflects market reality.
These steps allow us to make investment offers based on solid, transparent data. Foxstone can then select only those properties that meet the high standards required to hedge risk and maximize long-term return potential for our clients.
Rental income, net of all expenses, is paid quarterly into the co-owners’ bank accounts according to their shares.
Full details of rental income and management reports are available in your personal space under the Portfolio tab.
Condominium ownership allows a building to be divided into independent units while the common areas are managed collectively. Specifically, investing in condominium ownership generally amounts to buying an apartment to live in or rent out.
Co-ownership in participative investment means buying one or more shares in a property in order to receive income from it.
Compared to condominium ownership, co-ownership investment has the following advantages:
A more affordable investment
The minimum amount for a Foxstone co-ownership investment is CHF 25,000, compared to an average contribution of CHF 150,000 for an 80 square meter condominium.
Lower vacancy risk
In a co-ownership real estate investment, each investor is a co-owner of a portion of the building. Specifically, they own a fraction of each apartment and receive a percentage of the rental income generated by all the apartments, based on their share.
If one apartment is vacant, the other apartments continue to generate rental income. This diversification limits the financial impact for each investor, as the loss of income from one unit is offset by the income from the others. This mechanism of spreading the risk of rental vacancy across multiple units is known as risk dilution.
Conversely, owning a single unit exposes the owner to greater risk. In the event of a vacancy, the owner loses all rental income from that unit, while still having to pay the associated fixed costs such as taxes, maintenance and management fees. In this scenario, the risks are entirely concentrated in a single unit, which can have more severe financial consequences.
Professional property management
As part of a shared-ownership investment, a property management company is responsible for the management of the building, including rent collection and routine maintenance.
As the administrator of the property, Foxstone makes strategic decisions aimed at maximizing its value and returns. Co-owners are encouraged to take part in major decisions at the annual meeting, which is held online to facilitate participation.
In order to protect the co-owners from a potential interest rate hike which could negatively impact the investment’s revenues, Foxstone generally sets interest rates over a seven-year period.
Foxstone has partnerships with several renowned Swiss banks through which agreements are concluded to make the crowdinvestment in co-ownership as fluid as possible. Each investor has to have filled beforehand the investment form supplied by Foxstone at the time of his subscription. These forms are sent to the bank in order to verify the origin of the funds and the investor’s solvency.
In Switzerland, the debt ratio on residential buildings can reach 80% of the value of the building. For the financial stability of the investment and in anticipation of future hikes of interest rate, we generally prefer to borrow a maximum of two-thirds of the property’s value. We want the building to be self-sustained and the mortgage cost to be largely covered by the rental income.
For co-ownership investments, Foxstone charges a finder’s fee of the gross value of the asset at acquisition and management fees ranging from 0.05% to 0.25% of the property price (decreasing with the size of the transaction).
If renovations are required, the property management company responsible for the day-to-day management of the building may arrange for them to be carried out independently, up to a maximum of CHF 3,000 per intervention and CHF 10,000 per year.
For work exceeding these amounts, the management must obtain approval from the property administrator, i.e. Foxstone.
For work exceeding 2% of the value of the property, a decision by the general meeting of co-owners is required (by a simple majority).
All these procedures are detailed in the co-ownership management regulations.
The co-owners are free to choose the property manager and revoke Foxstone’s management mandate. This will require a qualified majority of co-owners, as provided in the co-ownership agreement.
As manager of the property, Foxstone is delegated by the community to make decisions regarding renovations and mortgage payments.
The collection of rents and the day-to-day management of the property are delegated to established and reputable property management agencies, with whom Foxstone has entered into partnerships that allow the co-owners to benefit from preferential rates throughout Switzerland.
In order to ensure the necessary maintenance and renovation of the building over the years, the co-ownership’s governing documents require the appointed manager to establish a renovation fund on behalf of the co-owners. That way, Foxstone protects the co-owners whose property it manages from a potential call for funds.
The percentage of income deducted from this account is determined by the condition of the property and the recommendations contained in the condition report. It is set each time by the director at the general meeting for the following year.
This fund is used when renovations are needed and can also be used to cover interest payments to the bank when rental income is insufficient.
When they sell their shares, investors receive the balance of this account in proportion to their shareholding.
With co-ownership, your name (and that of each co-owner) will be recorded in the land registry. Your actual rights to the property are thus guaranteed, and you are not dependent on Foxstone to enforce them.
Foxstone is only the administrator of the property. If Foxstone were to disappear, the administration would simply have to be delegated to a third party, such as the agency in charge of property management.
Co-owners are strongly encouraged to participate in general meetings held online and asynchronously.
Co-owners can vote, make recommendations, and ask questions through the Foxstone platform.
The meeting is chaired by the manager, i.e. Foxstone, who presents the financial statements for the past year and the budget for the coming year.
The documents are posted online at least 10 days before the meeting.
Foxstone takes a conservative approach in preparing the financial plan for each property.
We incorporate a rental loss forecast based on the building’s historical vacancy rate into our income projections. This ensures that in the event of a vacancy, revenues are never too far off projections.
Please note:
This is a forecast, not a provision, i.e. the advertised yield takes into account the fact that a certain number of apartments may remain unoccupied for some time due to tenant turnover. If, during the year, all apartments are occupied without interruption, the yield paid out will be higher than the yield advertised.
This approach gives us a margin of safety when calculating the expected yield, ensuring that it is as close to reality as possible.
Finally, Foxstone has an extremely positive rental track record, with only 1% of its 33 properties under management vacant.
Yes, co-owners can put their shares up for sale on the Foxstone platform by writing to contact@foxstone.ch. The price is set by the seller; the buyer is responsible for all costs.
The aim is to minimize rental vacancy periods, which have an impact on income. We therefore seek to re-let units as quickly as possible and anticipate the effect of tenant turnover on returns.
Foxstone therefore delegates the day-to-day management of the properties to professional property managers who are capable of minimizing vacancy periods. We also take a conservative approach to the financial planning of each building.
We incorporate a rental loss forecast based on the building’s historical vacancy rate into our income projections. This ensures that in the event of a vacancy, revenues are never too far off projections.
Please note:
This is a forecast, not a provision, i.e. the advertised yield takes into account the fact that a certain number of apartments may remain unoccupied for some time due to tenant turnover. If, during the year, all apartments are occupied without interruption, the yield paid out will be higher than the yield advertised.
This approach gives us a margin of safety when calculating the expected yield, ensuring that it is as close to reality as possible.
Finally, Foxstone has an extremely positive rental track record, with only 1% of its 33 properties under management vacant.
CrowdlendingFor crowdlending, Foxstone charges the borrower a percentage of the loan amount, depending on the terms of the loan, to manage the operation.
The loan is materialized by a debt contract issued by the borrowing company which owns the construction project or the building to be refinanced.
Crowdlending investments are loans of between 12 and 36 months made to a real estate developer to finance a development project or refinance an existing asset.
Without replacing the bank, investors match the developer’s equity in the form of a junior loan. They receive fixed interest payments, either annually or at the end of the loan term, and recover their capital at the end of the loan term.
For crowdlending, investors must complete the following documents:
They must also provide a copy of their ID (and Swiss residence permit for foreign investors), and a bank statement in their name, dated within the last three months, from a bank in Switzerland, and showing a balance equal to or greater than the amount invested.
Foxstone sends investors a biannual newsletter on the projects.
Enterprise contracts are generally preferred by Foxstone because they reduce the risk of delays and budget overruns. This is because the company can be held responsible for any variances. Thus, any overrun of the set construction budget is the responsibility of the construction company and any overrun of the delivery time is penalized. Therefore, enterprise contracts are instrumental in the risk of overruns.
This would have no effect on your investment. You remain the owner of the debt, the borrower remains obligated to pay it, and interest continues to accrue.
In crowdlending, Foxstone’s role is to represent investors within a special purpose vehicle (SPV) created specifically to issue the bond on behalf of all investors.
If Foxstone were to disappear, investors would simply have to elect a new representative to the SPV to handle day-to-day operations such as management, monitoring and reporting.
Interest is paid annually or at maturity. This information is specified in the description of each offer.
Yes, the return on crowdlending is fixed. Unlike co-ownership investment, the amount of interest is contractually fixed and does not vary.
In the event of early repayment or partial early repayment, the borrowing company pays investors contractually defined penalties. In the case of partial early repayment, interest continues to accrue on the capital still invested.
If a loan is extended, the borrowing company pays the investors contractually-defined penalties, and interest continues to accrue on the period for which the loan was extended.
Foxstone requires at least one of the following four guarantees for crowdlending:
A mortgage certificate is a legal title that formalizes the pledging of a property as collateral for a loan. It is created to certify the debt and ensure its repayment by a company wishing to borrow to finance a project or refinance a property.
The mortgage certificate specifies the amount covered by the mortgage. If the borrower defaults on payment, the creditor holding the mortgage certificate can exercise its rights over the property to recover the agreed sum.
Yes, once the funds are returned to your bank account, you can reinvest them in another project.
Please note that Foxstone cannot directly transfer your funds from one project to another.
If repayment is made on the initially scheduled date, without early repayment or extension, the principal is transferred directly to the investor’s bank account. If interest is paid at maturity, it is transferred together with the principal.
Foxstone automatically deducts and remits 35% withholding tax on interest income to the Swiss Federal Tax Administration (FTA). Investors can then reclaim this withholding tax in the form of a tax credit when filing their tax return.
The acquisition team focuses on projects that meet the following criteria:
Projects that meet these criteria are then subjected to in-depth analysis to ensure their viability.
KYC stands for Know Your Customer and is a form whose main purpose is to combat money laundering and financial crime. You have to fill it out because it’s the law.
Foxstone is required to verify the identity of its clients as investors. We do this in accordance with legal and regulatory requirements.
Each investor’s tax situation depends on factors such as place of residence, assets, income and marital status. Foxstone recommends that all investors consult a tax advisor to understand their specific tax situation before making an investment.
Foxstone is subject to the regulations of the following laws:
In addition, Foxstone is affiliated with the Association Romande des Intermédiaires Financiers (ARIF) as a financial intermediary within the meaning of the Anti-Money Laundering Act (AMLA).
A co-ownership investment is taxed as follows:
Foxstone sends co-owners a detailed report of all income to facilitate their tax returns.
Crowdlending investments are taxed as follows:
For more information on withholding tax, consult the FTA website.
You can find tax reports and management reports linked to your investments in your personal space. In your Personal Space, go to the Portfolio tab, select Dashboard, then select Open Positions. Click on your investment and select “Tax Reports”.
Documents (IDs, bank statements, etc.) may be rejected if they do not meet regulatory standards or are deemed to be illegible.
In short, make sure all your documents are up to date and your copies are clean.
Data SecurityAll data collected by Foxstone is hosted on Google Cloud servers in Switzerland to ensure compliance Swiss regulatory requirements.
Foxstone encrypts all data before it is transferred to this cloud to keep your information secure.
Foxstone takes the necessary measures to ensure the confidentiality and security of your information in accordance with the Data Protection Act (DPA).
Our infrastructure uses today’s most advanced security protocols to handle your data. All sensitive information is encrypted and we apply the strictest access control measures to ensure that only authorized individuals have access.
Foxstone employs a number of stringent security measures to protect investors’ personal information.
These include encryption of data in transit and at rest, the use of advanced firewalls for connections, and regular security audits performed by independent experts.
In compliance with the Federal Act on Data Protection (FADP), Foxstone follows the principles of minimizing data collection and using investor information only for the purposes for which it was collected.
Only Foxstone employees who require this information to perform a specific task in the interest of the investors can access personal data. If disclosure to third parties is necessary, this will only be done in strict compliance with data protection regulations and with the investor’s prior consent.
Foxstone only shares investors’ personal data with third parties if this is necessary for the provision of explicitly requested services. This is done only with the investor’s prior consent and in compliance with the high standards of security and confidentiality required by the Federal Data Protection Act (DSG).
Our team is at your disposal to meet you and answer all your questions
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