Funding

House purchase
0%

Update: 03.04.2024

Renovation
0%
House purchase
0%
Renovation
0%

Update: 03.04.2024

If you would like to support us with money in the form of a subordinated loan for the purchase of a house or renovation work, please contact us via info[at]mosaik.haus. We will then discuss the specific details together and clarify all the options and risks more thoroughly.

How does it work? As we are not a bank, we are not allowed to grant loans. That's why you give us subordinated loans instead. We negotiate individual conditions with you regarding the circumstances under which we can borrow your money. What amount, what interest rate and how much time we have to pay you back when you need it again.

What do we need the money for? 

We don't want to make the house our property, but rather transfer it to community ownership. To this end, we have founded Mosaik-Haus Zwiesel GmbH, whose sole shareholder for the time being is Hausverein Mosaik-Haus SOE e.V.. Its members are only the people who live (or will live) in the house. We are currently receiving advice from the Mietshäuser Syndikat and are also one of its members with initiative status. We are planning for the Mietshäuser Syndikat to acquire a stake in the limited company that owns the house in the future, so that the house becomes a genuine, non-saleable and jointly owned community resource.

What is the Mietshäuser Syndikat?

The Mietshäuser-Syndikat

The Mietshäuser Syndikat (MHS) is a non-commercially organised investment association for the acquisition of houses that are self-managed and transferred into collective ownership. The idea and goal of the MHS is to permanently remove houses and land from the real estate market, thereby ensuring socially acceptable rents in the long term and providing affordable housing for all.

As an association of now more than 180 self-managed housing projects, the MHS is also to be understood as a network through which an immense know-how on the purchase process, financing, accounting and administration is passed on.

--> More on https://www.syndikat.org/

And this is how it works:

The house residents join together in a house association and found a limited liability company with the MHS, which buys the house. Both parties contribute the share capital necessary for the foundation of the limited company, so that both act as shareholders. The ownership of the limited liability company is then divided into 51% for the house association and 49% for the MHS.

The house association is entitled to make decisions in all administrative matters - such as housing, rent, organisation, renovation - and is therefore independent. In return, it also provides the management of the limited liability company.

The syndicate acts as a watchdog organisation and only has voting rights for certain decisions. These include the purchase and sale of real estate, amendments to the articles of association and, if applicable, the appropriation of the profits of the limited liability company.

For the purchase of the house and the renovation measures, the limited liability company borrows money from a bank and from private supporters. The lenders do not finance us privately, but the project. The loans are repaid through the tenants' rent payments. The limited liability company therefore acts as a landlord, but does not pursue any profit motives. As the repayments increase, the debt decreases and the stability increases accordingly.

Since the subordinated loans, i.e. the loans from private individuals, are used as an equity equivalent vis-à-vis the bank, the sum must remain constant over the term of the loan. If individual lenders demand their money back, we have to raise new loans.

[Text stolen from https://wums.org/syndikat/]

We don't want to make the house our property, but rather transfer it to community ownership. To this end, we have founded Mosaik-Haus Zwiesel GmbH, whose sole shareholder for the time being is Hausverein Mosaik-Haus SOE e.V.. Its members are only the people who live (or will live) in the house. We are currently receiving advice from the Mietshäuser Syndikat and are also one of its members with initiative status. We are planning for the Mietshäuser Syndikat to acquire a stake in the limited company that owns the house in the future, so that the house becomes a genuine, non-saleable and jointly owned community resource.

What is the Mietshäuser Syndikat?

The Mietshäuser-Syndikat


The Mietshäuser Syndikat (MHS) is a non-commercially organised investment association for the acquisition of houses that are self-managed and transferred into collective ownership. The idea and goal of the MHS is to permanently remove houses and land from the real estate market, thereby ensuring socially acceptable rents in the long term and providing affordable housing for all.

As an association of now more than 180 self-managed housing projects, the MHS is also to be understood as a network through which an immense know-how on the purchase process, financing, accounting and administration is passed on.

--> More on https://www.syndikat.org/

And this is how it works:

The house residents join together in a house association and found a limited liability company with the MHS, which buys the house. Both parties contribute the share capital necessary for the foundation of the limited company, so that both act as shareholders. The ownership of the limited liability company is then divided into 51% for the house association and 49% for the MHS.

The house association is entitled to make decisions in all administrative matters - such as housing, rent, organisation, renovation - and is therefore independent. In return, it also provides the management of the limited liability company.

The syndicate acts as a watchdog organisation and only has voting rights for certain decisions. These include the purchase and sale of real estate, amendments to the articles of association and, if applicable, the appropriation of the profits of the limited liability company.

For the purchase of the house and the renovation measures, the limited liability company borrows money from a bank and from private supporters. The lenders do not finance us privately, but the project. The loans are repaid through the tenants' rent payments. The limited liability company therefore acts as a landlord, but does not pursue any profit motives. As the repayments increase, the debt decreases and the stability increases accordingly.

Since the subordinated loans, i.e. the loans from private individuals, are used as an equity equivalent vis-à-vis the bank, the sum must remain constant over the term of the loan. If individual lenders demand their money back, we have to raise new loans.

[Text stolen from https://wums.org/syndikat/]

This will enable us to secure affordable, communal and self-managed living space in the long term, removing it from the real estate market. In addition, we want to create an additional place for networking in rural areas in Saxon Switzerland, provide spaces for emancipatory groups and individuals and establish a range of cultural activities.In addition, we want to create an additional place for networking in rural areas in Saxon Switzerland, provide spaces for emancipatory groups and individuals and establish a range of cultural activities.

The purchase price of the house has been finalised, so the sale should take place soon. With the help of professional advice, the renovation costs are currently being estimated and we are planning the renovation of the building and property together with our architect.

In addition to subsidised loans and bank loans, we are dependent on subordinated loans to finance the total costs.

What are subordinated loans?

Subordinated loans are loans in which private individuals or groups such as associations lend us their money directly with qualified subordination (explanation here), without going the roundabout way via the bank. For this purpose, all conditions are contractually agreed between the lender and the house corporation. This concerns the amount, the interest rate, the period of notice and the runtime of the subordinated loan.

With many small subordinated loans we can raise the necessary equity for the bank loans. Without this equity, we cannot get a bank loan. The more subordinated loans we get, the better the conditions will be.

What's in it for you?

Subordinated loans are a social, sustainable, local and transparent way for you to invest money. Instead of supporting a bank, you can use your money to help secure affordable housing, enable communal and self-managed living and create spaces for social and cultural activities in rural areas. If you are interested, you can also use or participate in these spaces yourself through the cultural association and become part of the broad network of people around the house project.

You will receive regular information from us about the development of the housing project and can get an idea of what is going on during a visit directly on site. In contrast, with banks it is often not exactly clear what happens with your money. Through individual agreements, the conditions can be flexible. In addition, you receive the full interest rate, as no bank has a share in the profits and all costs incurred are borne by the project.

What's the deal with investment volume and the obligation to publish a prospectus?

The acquisition of subordinated loans is subject to the German Investment Act. Accordingly, Mosaik-Haus Zwiesel GmbH is the issuer of various asset investments, which differ in terms of their interest rate. No more than a total of € 100,000 is offered within 12 months as part of a single asset investment. There is therefore no obligation to publish a prospectus in accordance with the Asset Investment Act.

What are the terms and conditions of the subordinated loan agreement?

You can give us subordinated loans starting at 500 euros. Due to the high administrative costs, we do not accept subordinate loans of less than 500 euros, but you are free to choose the amount above that. In addition to one-off payments, agreements on partial payments are also possible.

The beneficiary of the loan is Mosaik-Haus Zwiesel GmbH, registered in the commercial register with the number HRB 44914.

You can grant your subordinated loan either interest-free or with a fixed interest rate. This is independent of the amount and duration. Interest rates of up to 2.0% are currently possible. Low interest rates guarantee a permanently affordable rent, which is why we cannot pay higher interest rates. The interest is paid out at the end of the year. There are no administrative costs for you.

You can decide whether you want to give us your subordinated loan for an indefinite period or with a term that you specify (from one year). Long terms or periods of notice are particularly helpful for us, as they mean a high degree of planning security and less administrative work for us. This is particularly important for us with large amounts and in purchase and construction phases. In the case of fixed-term maturities, the subordinated loans end automatically after the agreed period unless they are extended. To ensure a certain degree of planning security for us and to have enough time to replace the terminated subordinated loans, the notice periods are staggered according to the loan amount. For an amount up to €5,000, the notice period is three months, up to €10,000 six months and over €10,000 twelve months. At the same time, it is important to us that we treat our supporters with solidarity. If you unexpectedly need your money before the end of the contract, we will try to repay it as early as possible.

Subordinated loans are loans with a qualified subordination clause. This means:

  • that in the case of bankruptcy, all other creditors (especially the banks) get their money back first, before private lenders are served,
  • that repayment or payment of interest is not possible if this would render the project in a state of illiquidity.

The subordinated loans and the accruing interest are paid via the rental income. Nevertheless, we cannot offer collateral that is customary in banking. The Banking Act stipulates that private lending may only take the form of subordinated loans. Subordinated loans are loans with qualified subordination. This means that in the event of bankruptcy, all other creditors (the banks) must be served first. In the worst case, this can mean that a loan cannot be repaid at all. In addition, the loan or interest will not be paid out if this would make the project unable to pay and unable to meet other liabilities.

Unlike banks, we are not authorised to withhold and pay capital gains tax. For you, this means that you are responsible for declaring income from direct loans in your income tax return. At least once a year (or on request), we will issue a certificate of interest income for this purpose.

What makes us trustworthy partners?

A community of solidarity: The Mosaik-Haus as an initiative is a member of the Mietshäuser Syndikat. This association of projects throughout Germany has been functioning well for over 25 years and is supported by many people. Through networking, we can draw on decades of knowledge and experience from various projects. We are also supported by an experienced team of advisors.

Realistic financial planning: Our financial planning is prepared in close cooperation with the advisors of the Mietshäuser Syndikat and an architect. The calculation is solid and based on the actual economic earning power of the rental house.

Transparent and local investment: As a lender, you will receive regular information about the development of the project. In addition, you are welcome to come by and see what is happening with your money on the spot and exchange ideas with us over a cup of coffee. In this way, the use of your money remains transparent.

How do I become a supporter?

If you are interested in supporting us with a subordinated loan, we would be happy to discuss your wishes, concerns and questions by e-mail or in a personal meeting. Just send us an e-mail to info[at]mosaik.haus. We are happy to answer your questions!

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