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Why Investment in Real Estate Crowdfunding is a Smart Choice for Latin American Investors

Feb 27, 2017

 

The global economic landscape is starting to change: where once only a handful of nations controlled the financial balance of power, now other countries are starting to gain significantly more influence in the global markets.

The nations of Latin America are a good example of this trend; Argentina, for instance, has experienced an average income growth of 7.6% over the last few years. According to the Wilson Center for Global Research:

"Latin America undeniably has played a role in the shift of economic power from North to South experienced by the world economy in recent years. From 1990 to 2012, the region’s participation in global economic activity grew from 5.1 to 7.8 percent; in global trade from 4.1 to 6.1 percent; and in FDI from 2.7 to 4.9 percent."

The economic upswing in Latin America has led to a renaissance for Latin American investors, with outgoing foreign investments from the region reaching record levels. With this new level of financial security, Latin American investors are looking for new investment destinations to take advantage of.

Here’s why Real Estate Crowdfunding would be the smart choice:

 

Take advantage of strong currencies

Real Estate Crowdfunding is done entirely online, which means that Latin American investors can benefit from operating in hard currencies such as the US dollar, therefore avoiding the potential fluctuations and volatility associated with other currencies.

 

Gain added security by investing in world cities

Investing remotely also allows Latin Americans to free themselves of the restrictions of local investment; they can instead put money into properties in global cities such as New York or London, profiting from the natural economic strength of these locations.

 

Mitigate risk with the stability of luxury properties

Crowdfunding real estate with Bricksave gives Latin Americans the opportunity to invest exclusively in luxury properties, the high-end nature of which affords them an added security based on desirability and the fact that there is a necessarily limited number of upscale real estate. Luxury properties tend not to be subject to the same market lulls as normal real estate.

 

Enjoy low upfront costs that allow for better diversification

Investing in Real Estate Crowdfunding can cost as little as US$2,500, which gives Latin American investors the chance to put smaller amounts in multiple pieces of real estate, therefore spreading their investment and diversifying their portfolio. Diversification helps defend against potential downturns by balancing out losses in one area of a portfolio with gains in another.