Crowdfunding real estate is of no doubt the most convenient, reliable and stress-free way of raising funds for property projects. Starting a property investment as an individual is daunting not only because of the huge capital required but also because of the processes involved.
Crowdfunding has eased. Investors can now invest even with as little as £500. What are the benefits of property crowdfunding?.
You Can Invest Even With a Very Little Amount
Property crowdfunding, according to Shojin Property Partners, has enabled lots of upcoming investors to actualize their dreams. With as little as £500, you can contribute to equity or mortgage investments and still earn returns.
This was not the case before the arrival of crowdfunding as people were required to have hundreds of thousands of pounds to start such a business.
You may not even need a loan to invest in the property. With a few hundred pounds from your monthly income, you can become a property investor.
There are no investment fees charged because everything is done online. Taxation rates on crowdfunding platforms are also very low as compared to offline property investment.
Autonomy to Invest in Any Kind of Property
Investors who were seeking finances to invest on property used to be directed by the lenders on which kind of property to invest on. This presented a challenge to many investors since most people didn’t even know the kind of property they were made to invest in.
With crowdfunding, an investor examines the project, understands its risks and potential profits before deciding on whether to invest in it or leave it. Investors can only spend their money on projects they deem profitable so it is very unlikely for an investor to earn losses.
Investors Can Investor on Multiple Projects
If you were to construct several apartments in the city, how much would it cost you as an individual? Millions of euros of course. This means even if you get capital, you cannot risk your money on several projects because all of them could end up failing due to lack of enough funds.
This is why many individual investors prefer starting small. In crowdfunding, that is not the case because you can select as many projects as you want and invest in them. Even with ten thousand euros, you can invest in tens of projects and generate returns from all of them.
Less Likelihood of Earning Losses
Before the coming of property crowdfunding, people used to just invest without understanding the risks involved. Many used to reap losses and as a result, many feared to invest in property.
Crowdfunding is not like that because investors get access to all sorts of information before they decide to invest in. Information about returns, terms of payment, property appreciation estimation and associated risks are clearly defined before people invest.
This access to information is what enable investors to make informed choices before investing their money.
Short Term Investment Period
Unlike before when investors used to wait for several decades to get their money back, crowdfunding investors get their money earlier. Investments take 6 to 36 months to start bringing returns and by the end of the agreed period, you will have your money fully repaid.
This gives investors an opportunity to continue investing and earning profits. Property crowdfunding investment is rewarding because you get your profits early, expand your capital and continue to increase your investments.
No Property Management is done by Investors
Before crowdfunding invaded the property industry, property investors used to struggle to ensure all property features are wonderful for tenants to stay. Nowadays investors just contribute money.
They sit at home and wait for returns in their bank accounts. As an investor, you don’t have the burden to manage the property, property management professionals do the work for you. Your work is just to wait for returns until every penny you lent is returned plus its agreed interest.
Property Crowdfunding Has Enabled Middle-Class People to Own Property
Accredited investors used to have an annual income of two hundred thousand pounds and above. Many people couldn’t afford that so property investment used to remain an opportunity to the financially privileged people in society.
Amendments were made and now in property crowdfunding, anyone who has capital can invest and earn returns. You can split your money into several portions and invest in multiple projects.
You earn more and lowers the risk of earning losses because if one project fails, you have several more to count on.
Conclusion
Property crowdfunding has revolutionised the industry and people can now invest without a lot of discouragement. Find a perfect property crowdfunding company and make sure you understand the terms of property investment before you invest your money.
