# How InvestBay pays out money > Source: https://www.investbay.com/en/blog/how-investbay-pays-out-money · Part of InvestBay (https://www.investbay.com) · See /llms.txt for an overview. [How it works](https://www.investbay.com/en/news?jak-to-funguje) # How InvestBay pays out money 21 August 2024 Are you considering an investment, or have you already invested and want to know when and how much money you will actually receive? We have prepared a short summary for you. Your total return consists of two components: #### 1. Rental income It works just as if you owned the property - the only difference being that you do not have to take care of anything and you receive a share of the rent according to the size of your investment. We will send you the first payment within about two months of the property being transferred into our ownership, which happens shortly after 100 % of the target amount has been raised. We then pay you monthly or quarterly until the property is sold. **A simplified example** At InvestBay, we offer a property worth €400,000. At the beginning of April, you buy shares for €4,000 = 1 % of the total value. You wait for the total amount to be raised from the other investors. In July the amount is raised and we begin the process of transferring the property to us. If everything goes smoothly, in September you will already receive 1 % of the total monthly rent. #### 2. Return from the property's sale price This is the more interesting part. After the end of the investment cycle (which is usually 5-10 years), we sell each property and again divide the total profit among all investors according to the size of the share they hold. The final amount is not capped in any way and can therefore end up giving you a very nice bonus on top of the regular rental income. Property prices around the world continue to grow at a rocketing pace, and thanks to InvestBay you too can start earning from it. ** A simplified example ** In 2024, you bought a 1% share in a property worth €400,000 for €4,000. Five years later, its price increased by 50 % to €600,000. After the sale, you therefore get back 1 % of the final amount, that is €6,000. Your earnings are therefore €2,000. ## Example of an investment InvestBay offers a property in Tenerife for approx. €260,000. - Your investment: €4,000 - Annual rental yield: 4.66 % - Annual property appreciation: 4.5 % - Investment horizon: 5 years The annual rental yield is 4.66 % of the invested amount, that is approx. €190. The rent is paid out monthly, so each month you receive 1/12 of this sum = approx. €16. The estimated annual appreciation of the property is 4.5 %. This means that the property's price increases each year by 4.5 % of the current price (the effect compounds each year). This is always an estimate; you will learn the specific sum when the property is sold. **If the price were to grow by more than our estimate, you will receive a share according to the actual growth**, which could be, for example, 6 % or 8 %. You can look at the distribution of payments for this example in the chart. The final payment (approx. €5,200) is in reality split into two - the initial investment of €4,000 is returned (not shown in the chart) and to it is added approx. €1,000 as the return from the sale and approx. €190 as the return from the rent. An investment of €4,000 can therefore grow over 5 years to approx. €5,900, increasing by roughly a half. In this particular case, we counted on a higher return from appreciation than from rent. In the next chart you can see the distribution between the two components of the return. This property therefore earned investors more on the final appreciation. However, we always try to also offer properties where rent makes up the higher share. For such projects, a longer investment horizon is then advantageous. Know someone who is thinking about investing? Send them this article so they have the key facts in one place. ## Where to invest with InvestBay? ### Almresort Gartnerkofel Nassfeld Available now Austria estimated annual return: 6–8 % investment term: 7 years ### Wyndham Portocolom 2 Mallorca Available now Spain estimated annual return: 9.00 % investment term: 5 years ### Element Residence Bali - tranche 1 Available now Indonesia estimated annual return: 10.00 % investment term: 7 years ## More articles ### Where to invest €4,000? Options by goal and risk [Read full article](https://www.investbay.com/en/blog/where-to-invest-4000-eur) ### InvestBay's portfolio has entered a new phase 03 June 2026 [Read article](https://www.investbay.com/en/blog/investbay-s-portfolio-has-entered-a-new-phase) ### How to build the ideal investment portfolio – and why it must not lack real estate 10 September 2025 [Read article](https://www.investbay.com/en/blog/the-ideal-investment-portfolio-a-step-by-step-example-and-tips) Investing [All articles](https://www.investbay.com/en/news)