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Why Real Estate Crowdfunding is the Perfect Option for Cautious Investors

Aug 2, 2016

There aren’t many options out there for those that want to invest their money but don’t want to be exposed to high levels of risk. At a time when the global finance market appears as unstable as ever, it can often feel like there are no longer any methods of growing your money that don’t come with large helpings of risk and volatility.

While that may partly be the case, it is definitely not the whole story. The truth is that, yes, traditional investment methods now often come with unacceptable risk factors, but newer methods of investment - born out of the evolution of the internet - provide alternative solutions that help to mitigate risk. Real Estate Crowdfunding is one such option, offering a more democratised way of investing in property.

Scanning over the existing traditional investment options makes for depressing reading. Savings accounts in banks nowadays often have interest rates that only marginally beat the current rate of inflation, meaning they aren’t all that worthwhile – not to mention the fact that banks themselves do not have a good track record in terms of reliability over the past ten years or so.

Putting money into stocks and bonds is the other usual go-to, but the obvious volatility of these poses a serious problem for cautious investors; take, for example, the fact that Apple stock dropped from $700 to $450 dollars in a matter of months between 2012-2013 – and this kind of thing is a regular occurrence. The problem is especially tricky when you consider that the success or failure of the investment is usually based on the decisions and performance of a handful of human beings (we are, after all, notoriously unreliable creatures).

The other problem that’s true for most traditional investment options is initial cost – you need to have upfront access to decent amounts of capital to actually make the investment in the first place, and seriously large amounts if you want the investment to be worth anything.

Cautious investors are not left with many options; but Real Estate Crowdfunding is one of them. Real Estate Crowdfunding provides a good opportunity to mitigate risk by investing small amounts in one of the more stable markets: bricks and mortar. Choosing Bricksave as a platform also cuts that risk even further, seeing as Bricksave only crowdfund luxury properties, ones that are not as open to the same price fluctuations as low-end real estate. Real Estate Crowdfunding also provides the cautious investor with more clarity: it can often feel like you don’t know where your money is going or what it’s doing when investing in traditional methods (especially with stocks), but Bricksave provide investors with all the information they need, and our online dashboard allows you to closely monitor how your investment is doing. Diminishing risk is priority number one for Bricksave, which is why we focus more on stable long-term investments, helping crowdfunders to grow their money safely over a number of years.

In the past, the volatility of the investment market meant that cautious investors simply didn’t take part. Now that doesn’t have to be the case. Using Real Estate Crowdfunding is the perfect way to put small amounts of money into a diversified portfolio of stable properties and make steady gains that accumulate over time.

 

by Bricksave CEO Tom de Lucy

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*This amount is an estimate and should not be considered a guaranteed figure. The value of your investment can go up as well as down. In most circumstances the maximum duration of an investment will be 4 years.

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