Why Crowdfunding is great for young Investors

Why Crowdfunding is great for young Investors

While still in it’s infancy, real estate crowdfunding really does have the ability to revolutionise the way people invest in real estate and how property groups fund capital for their real estate developments.

As early adopters, the younger generations are going to be some of the first to utilise crowdfunding as a way to invest in property. See why below on the CrowdfundUP blog.

Diversification and Low Minimum Investments

Crowdfunding allows investors to invest in different types of real estate, spanning worldwide geographic locations for as little as $1,000. Young investors, who may just be starting the process of building their investment portfolios or may not yet be able to invest large sums into investment, can use crowdfunding to access real estate deals they otherwise may not have the resources to participate in.

Variety

Real estate crowdfunding platforms offer different types of deals, allowing investors the opportunity to only take on risk that they are comfortable with. Younger investors may be interested in more stable development projects, something they are likely to find on a real estate crowdfunding platform.

Control

Younger investors, who have increased knowledge about local real estate markets, may want to determine the types of properties and which parts of the market they are investing in. Real estate crowdfunding platforms allow for control in investment selection, property choice and also access to timely detailed information about various properties.

Access

Crowdfunding is a method of real estate investment that is not only online, but also bypasses traditional practices and middlemen. With a few clicks of a button, investors can invest in real estate anywhere in the world from the comfort of their own living room. Additionally, younger investors have access to commercial real estate deals in networks they may not have previously had access to.

While the real estate crowdfunding industry is still young, the younger generation is quick to jump onto technological advances and can see the benefits that online real estate crowdfunding offers.

To learn more head over to: https://crowdfundup.com

“Any advice provided on this blog is general in nature. Readers are urged to seek their own professional advice before making decisions.”

Author

Jack Quigley is the Founder and Managing Director of CrowdfundUP. Jack is an experienced Perth commercial lawyer with extensive corporate advisory experience in transactional, foreign investment, corporate taxation, restructuring and regulatory matters. In late 2012, Jack left his position at Lavan Legal to establish CrowdfundUP, Australia's first property crowdfunding platform. Since it's inception in 2012, Jack has played an influential role in shaping the Australian crowdfunding industry and regulatory requirements. He has been on the forefront of discussions with the Australian Government championing the benefits of crowdfunding and innovation on the Australian economy. Jack has become a leader in the financial technology space, regularly speaking at events and conferences, contributing to startup mentorship programs, and educating people on the future of disruptive and innovative technology.

1 comment

  • People investing through crowdfunding should be extremely careful. Crowdfunded properties are generally new developments where the crowdfunding company gets a large commission (I’ve seen 5%+).

    From my experience these developments are often overpriced for the market and have been sold through property marketers. Crowdfunding to me seems like property marketers with added financial compliance expenses.

    So it looks like you’re taking something that is already overpriced (developments sold through property marketers), adding more expenses to it and then selling it to uneducated investors.

    Plus the conflict of interest that a crowdfunding platform will likely recommend a property because they are getting paid by the developer to fund that property, not because it is in the best interest of the investor.

    It’s early day and I could be wrong, but to me it looks like a green field that’s actually full of landmines….that may be a bit extreme but hopefully people can see what I mean and be extremely cautious.

    Reply

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