EstateGuru Review
Platform Overview
Platform Age
Launch Year
Loans Funded
Total Volume
Markets
European Countries
Minimum Investment
Per Project
Critical Default Rate Information
While EstateGuru offers property-backed security, the platform has reported concerning default rates in recent years. According to independent analysts, as much as 58% of the portfolio could be in recovery status, with particular problems in the German market. These defaults largely stem from the platform’s 2021-2022 expansion period. The company reports that newer loans (2024 onwards) are performing better, with 97% reportedly on track or repaid.
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Investment Focus
Property-backed business loans across multiple European countries, including development loans, bridge loans, and business loans.
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Expected Returns
Advertised returns of 10.34-10.9% annually, though independent reviews suggest actual returns closer to 6.9% for long-term investors.
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Security Features
All loans backed by property as collateral, with loan-to-value (LTV) ratios typically between 50-75%. ESCP licensed platform.
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Fee Structure
Secondary market fee (3%), assets under management fee (0.05%), withdrawal fee (âŦ3), and inactivity fee (âŦ10/month after 12 months).
Standout Features
Property collateral for all investments
ESCP licensed crowdfunding platform
Active secondary market for liquidity
Pan-European investment opportunities
Investment Calculator
Total Investment Value
About Our “Realistic Rate” Model
We’ve set the default calculation to use 6.9% rather than the advertised 10.9% rate based on independent long-term investor experiences with the platform. This accounts for the impact of defaults, recovery processes, and platform fees.
Our Experience with EstateGuru
Our review team has been monitoring EstateGuru since 2020 and has conducted in-depth analysis of its performance and risk factors. We've also gathered data from long-term investors to provide a comprehensive picture.
Portfolio Performance Metrics
Return Discrepancy
One of the most significant findings in our analysis is the gap between EstateGuru's advertised returns (10.34-10.9%) and the actual returns reported by long-term investors. Based on data from multiple independent sources, actual returns have averaged closer to 6.9% over extended periods. This discrepancy appears to be primarily driven by the high default rates and the time value of money lost during lengthy recovery processes.
Default Rate Analysis
The most concerning aspect of EstateGuru's current performance is its alarming default rate. According to credible industry analysts, the platform has a default rate of approximately 58%, with more than half of its outstanding portfolio in recovery status. These defaults stem primarily from EstateGuru's aggressive expansion strategy in 2021-2022, particularly in the German market.
It's important to note that EstateGuru claims newer loans (issued in 2024) are performing significantly better, with 97% reportedly on track or already repaid. This suggests that the platform has potentially improved its loan quality assessment procedures, though the large backlog of troubled loans remains a concern.
Recovery Process Insights
EstateGuru has established a structured approach to handling defaults and recovering investor funds. Based on our observations and company reports:
The platform has recovered over âŦ42 million since inception, with investors still earning an average of 8.5% on these recovered loans.
Recovery timelines vary significantly by country, with Baltic countries having faster processes than Germany and Finland.
In 2024 alone, âŦ14.85 million in principal was recovered from defaulted loans.
The property collateral backing does provide a safety net, though liquidation can be time-consuming.
Positive Observations
- All loans backed by property collateral, providing tangible security
- ESCP licensed platform with regulatory oversight
- Functioning secondary market for added liquidity
- Improved loan quality for investments made in 2024 onwards
Major Concerns
- Extremely high default rates (58%) across the portfolio
- Significant gap between advertised and actual returns
- Lengthy recovery processes, especially in Germany and Finland
- Multiple fees including controversial inactivity and withdrawal charges
Summary Assessment
Based on our extensive analysis, EstateGuru presents a mixed investment proposition. While it offers the security of property-backed loans and has shown improved loan quality in recent projects, the platform's extremely high historical default rate and lengthy recovery processes are significant concerns. For potential investors, we recommend extreme caution, especially given the gap between advertised and achieved returns. Those considering EstateGuru should be prepared for possible defaults and understand that actual returns may be substantially below advertised rates.
Platform Safety Analysis
Critical Risk Factors
- Extraordinarily high default rate of 58% reported by independent analysts
- Over âŦ130 million in loans reportedly at risk or in recovery
- Significant performance issues with loans issued during 2021-2022 expansion
- Recovery processes can be lengthy, particularly in Germany and Finland
Regulatory Status
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ESCP (European Crowdfunding Service Providers) licensed
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Operates under European crowdfunding regulations
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Regulatory compliance hasn't prevented significant loan quality issues
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No investor protection or deposit guarantee schemes
Default Analysis
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58% default rate according to credible industry analysts
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More than half of the portfolio reportedly in recovery status
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German market particularly affected by massive loan defaults
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Newer loans (2024) reportedly performing better with 97% on track
Loan Security
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All loans secured by property as collateral
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LTV ratios typically between 50-75%
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Property liquidation can be time-consuming in default scenarios
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Collateral may not guarantee full recovery of principal and interest
Recovery Process Overview
EstateGuru has a structured approach to handling defaults and recovering investor funds. Here's how the process works:
Payment Monitoring & Initial Contact
EstateGuru monitors all payments and contacts borrowers immediately when a payment is missed. This begins with payment reminders and initial contact to resolve issues.
Warning Letters & Termination
If payments remain delinquent, warning letters are sent, followed by formal termination notices if the situation isn't resolved within specified timeframes.
Collateral Enforcement & Legal Proceedings
For defaulted loans, EstateGuru begins the process of enforcing the loan agreement through legal channels, which may involve property seizure and liquidation.
Asset Liquidation & Distribution
The property collateral is sold through judicial processes, and proceeds are distributed to investors. This stage varies significantly by country, with Baltic countries processing much faster than Germany and Finland.
Note: According to EstateGuru, they have recovered over âŦ42 million since inception, with investors still earning an average of 8.5% on these recovered loans. In 2024 alone, âŦ14.85 million in principal was reportedly recovered from defaulted loans.
Geographic Risk Assessment
Recovery times and default risks vary significantly by country. EstateGuru operates across multiple European markets, each with different legal frameworks and recovery timelines:
Forward-Looking Risk Assessment
While EstateGuru has acknowledged past issues with loan quality, particularly during its 2021-2022 expansion phase, the company claims to have implemented measures to improve performance going forward:
- Focus on effective recoveries to safeguard portfolio quality
- Stated goal to maintain default rates below 10% for new loans
- Claims that 97% of loans issued in 2024 are performing or already repaid
However, investors should remain cautious. The substantial backlog of defaulted loans continues to impact overall platform performance, and recovery processes for existing defaults may extend for significant periods, particularly in problematic markets like Germany.
Platform Interface & Features
Main Dashboard
Dashboard showing portfolio overview, recent investments, and account statistics
Project Details
Detailed view of property information, loan terms, and collateral data
Auto-Invest Settings
Configuration interface for automated investing with customizable criteria
Secondary Market
Marketplace for trading existing loan investments with other users
User Interface
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Clean, modern dashboard layout
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Detailed property information
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Portfolio performance metrics
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New mobile app (launched 2024)
Reporting Tools
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Portfolio diversification analysis
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Monthly statement generation
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Transaction history exports
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Annual tax documents
Project Information
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Detailed property descriptions
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Visual documentation (photos/maps)
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Loan-to-value (LTV) ratios
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Borrower information
Auto-Invest Functionality
EstateGuru offers automated investing capabilities to help investors build diversified portfolios based on their risk tolerance and investment objectives:
Conservative
Lower LTV loans (up to 60%), shorter durations, Baltic countries focus, minimal risk tolerance
Balanced
Medium LTV (up to 70%), mixed durations and countries, moderate risk tolerance
Growth
Higher LTV (up to 75%), longer durations, all countries including development projects, higher risk tolerance
Note: Given the high default rates experienced by the platform, we recommend investors exercise caution with auto-invest settings. Consider using more conservative criteria with lower LTV ratios and focusing on Baltic countries where recovery processes have proven more efficient.
Secondary Market
EstateGuru offers a secondary market allowing investors to sell their existing investments to other platform users:
The secondary market can be a valuable option for accessing liquidity before loan maturity. However, loans with payment issues or from countries with high default rates (particularly Germany) may be difficult to sell even at significant discounts. The 3% fee is higher than many competing platforms and can impact overall returns.
User Experience & Reviews
Customer Support Experience
EstateGuru provides multi-channel customer support with varying response times and quality:
Based on our interactions and user feedback, EstateGuru's support team is generally professional but may provide limited information regarding default status and recovery timelines. Response times can extend during busy periods or when dealing with complex recovery questions.
What Users Like
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Property-backed security with real estate collateral
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Clean, intuitive platform interface
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Secondary market for added liquidity
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Pan-European investment opportunities
Common Complaints
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High default rates, particularly in German market
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Lengthy recovery processes for defaulted loans
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Multiple fees including controversial inactivity fee
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Actual returns lower than advertised rates
Recent User Reviews
"I've been investing with EstateGuru for over 3 years. Initially had good experiences with consistent returns, but since 2022 have faced numerous defaults, particularly with German projects. Recovery process has been extremely slow, and actual returns are nowhere near the advertised rates. The property backing provides some comfort, but I've scaled back my investments until the default situation improves."
"EstateGuru's platform is user-friendly and I appreciate the detailed information provided for each project. My newer investments (started in late 2024) are performing well so far, though I've been careful to focus on Baltic projects with lower LTV ratios. The secondary market is useful for liquidity, but the 3% fee is higher than competitors. Overall good experience, but definitely requires cautious project selection."
"Disappointed with EstateGuru. Several of my investments from 2022 have defaulted, and the recovery process has been painfully slow with minimal updates. The inactivity fee is particularly frustrating - they charge you if you don't keep investing! Customer support provides generic responses when asking about default status. The property security is the only reason I'm not withdrawing completely, but I wouldn't recommend starting now."
Getting Started
Create an Account
Register on EstateGuru using your email address and set up a secure password. The registration form takes approximately 5 minutes to complete.
Complete Verification
Verify your identity through the platform's KYC process. This includes submitting identification documents and proof of address as required by European regulations.
Add Funds
Transfer money to your EstateGuru account via bank transfer. The minimum investment amount is âŦ50 per project.
Start Investing
Browse available projects or set up auto-invest to automatically diversify your investment according to your preferred criteria.
Account Verification
Personal Information
- â Full legal name
- â Date of birth
- â Contact details
- â Tax residence information
Required Documents
- â Government-issued ID or passport
- â Proof of address (utility bill/bank statement)
- â Selfie with ID document
Deposit & Withdrawal Methods
Bank Transfer
Withdrawals
âšī¸ Important Information
- Verification is usually completed within 24-48 hours but may take longer during busy periods
- Minimum investment per project is âŦ50
- Be aware of the inactivity fee: âŦ10/month if you haven't invested in the past 12 months
- Bank transfers must come from accounts in your name
Market Comparison
Platform Comparison
| Feature | EstateGuru | Crowdestate | Reinvest24 | Property Partner |
|---|---|---|---|---|
| Investment Security | Property Collateral | Property Collateral | Property Ownership | Property Shares |
| Advertised Returns | 10.9% | 11.5% | 14.0% | 8.0% |
| Default Rate | 58% | 15% | 7% | 5% |
| Minimum Investment | âŦ50 | âŦ100 | âŦ100 | ÂŖ1,000 |
| Secondary Market | â 3% fee | â 2% fee | â 1% fee | â 2% fee |
| Auto-Invest | â | â | â | â |
| Regulatory Status | ESCP Licensed | ESCP Licensed | ECSP Licensed | FCA Regulated |
Recommended Alternatives
Reinvest24 Property Ownership
- â Direct property ownership model
- â Rental income + capital growth
- â Lower default rate than EstateGuru
Crowdestate Similar Model
- â Property-backed security
- â Stronger performance record
- â Significantly lower default rate
Property Partner Regulatory Security
- â FCA regulated platform
- â Property share ownership model
- â Significantly lower risk profile
đ Why Consider Alternatives?
While EstateGuru offers property-backed security and competitive theoretical returns, we recommend considering alternatives for several key reasons:
- EstateGuru's extraordinarily high default rate (58%) far exceeds industry norms
- Recovery processes can be lengthy, particularly in the German market
- The gap between advertised and actual returns is significant
- Multiple fees (secondary market, withdrawal, inactivity) can reduce overall profitability
- Alternative platforms offer similar or better returns with significantly lower default rates
For investors who still want to use EstateGuru, we recommend focusing on Baltic projects with lower LTV ratios and being prepared for possible defaults despite property collateral.
Tax & Reporting
Fee Structure
| Fee Type | Amount | Description |
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| Secondary Market | 3% | Fee charged when selling investments on the secondary market |
| Assets Under Management | 0.05% | Monthly fee based on your total investment portfolio value |
| Withdrawal | âŦ3 | Fixed fee for each withdrawal request processed |
| Inactivity | âŦ10/month | Charged to investors who haven't made investments in the past 12 months |
EstateGuru's fee structure has been criticized by many reviewers, particularly the inactivity fee which effectively penalizes investors for not continuing to invest regularly. The secondary market fee of 3% is also higher than many competing platforms, which typically charge 1-2%.
Tax Documents
Annual Statement
Comprehensive annual statement showing all interest earned, principal repayments, and fees charged throughout the tax year. Available in PDF format.
Transaction History
Detailed record of all account transactions with timestamps, amounts, and transaction types. Exportable in CSV format for accounting purposes.
Portfolio Summary
Overview of your investment portfolio performance, including yearly returns, interest earned, and portfolio composition for tax reporting.
Reporting Features
Portfolio Dashboard
Real-time overview of investments and returns
Performance Charts
Visual representation of investment growth
Data Exports
Download transaction data in CSV format
Custom Date Ranges
Generate reports for specific periods
Tax Considerations by Region
European Union
- P2P income typically taxed as capital gains or investment income
- Tax rates vary by country (from 15% to 42%)
- Many EU countries require reporting on worldwide income
- Some countries have withholding tax agreements with Estonia
International Investors
- No withholding tax applied by EstateGuru
- Investors responsible for declaring income in their home country
- Consider exchange rate impacts for non-Euro jurisdictions
- Check double taxation treaties with Estonia if applicable
Important Considerations
- âĸ EstateGuru does not provide tax advice - consult a tax professional
- âĸ Tax treatment varies significantly between countries
- âĸ Special consideration needed for defaulted loans and recovery amounts
- âĸ Keep your own independent records as backup documentation
Tax Optimization Tips
- âĸ Consider tax-advantaged accounts in your home country if allowed
- âĸ Download tax documents regularly and keep them in a safe place
- âĸ Document any losses from defaulted loans for potential tax deductions
- âĸ Keep track of platform fees, which may be tax-deductible in some jurisdictions
Final Verdict
Key Takeaways
- EstateGuru's extraordinary default rate (58%) is a major red flag for potential investors
- Significant discrepancy between advertised (10.9%) and actual returns (6.9% reported by long-term investors)
- Property collateral provides some security, but recovery processes can be lengthy
- Multiple fees including the controversial inactivity fee reduce overall profitability
- Recent loans (2024 onwards) show signs of improved performance, but the backlog of troubled loans remains substantial
Potential Advantages
- All loans backed by property collateral, providing tangible security
- ESCP licensed platform with regulatory oversight
- Established market presence since 2013
- Secondary market provides liquidity option (with 3% fee)
- Newer loans show improving performance trends
Critical Concerns
- Extraordinarily high default rate (58%) far exceeds industry norms
- Lengthy recovery processes, especially for German market loans
- Actual returns significantly below advertised rates
- Multiple fees including the widely criticized inactivity fee
- Large backlog of troubled loans from 2021-2022 expansion
â ī¸ Recommendation: Proceed with Extreme Caution
Given EstateGuru's concerning default rates and the significant gap between advertised and actual returns, we advise extreme caution for potential investors. While the property-backed security provides some protection, the lengthy recovery processes and various fees can significantly impact your investment outcomes. For investors determined to use the platform, we recommend focusing only on Baltic projects with lower LTV ratios and being prepared for potential defaults.
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