Equity crowdfunding is rapidly evolving from an intriguing new idea into a genuine and sustainable investment option. When it first came onto the scene, it was regarded as somewhat fringe, but now equity crowdfunding is establishing itself as a solid a part of the global economy’s overall investment structure. The World Bank have even suggested that by 2025 crowdfunding will be a 90-95 billion dollar industry.
Nowhere is this more apparent than in the property sector. Real estate crowdfunding is fast securing its place as a viable option for those looking to invest in the property market, providing its own unique set of advantages over traditional investment.
The number of properties receiving investment via crowdfunding is on the rise, while real estate crowdfunding itself is expanding in scope – original real estate crowdfunding ideas were based around sites that specialise in funding super-sized projects with minimum investments of 1 million dollars, but this is now developing to include platforms that allow individuals to invest relatively small amounts of money, demonstrating that the practice now covers all corners of the market and includes almost all types of accredited and non-accredited investors.
We are even witnessing moves towards standardisation and general ground-rules, as many governments are recognising the influence crowdfunding is having on the landscape of the economy as a whole, leading to new guidelines being put into place as crowdfunding continues to grow and refine itself. Most recently this was demonstrated by the passing of the Jobs Act III in the United States.
So what’s behind this rapid development? Well, more people are becoming aware of the merits of Real Estate Crowdfunding and recognising that there are plenty of reasons why crowdfunding is a great alternative investment strategy. First off, its online nature allows people to get involved in projects on a global scale instead of just a domestic one, projects that they might not have even heard of previously. This serves to create a commercialisation of the real estate investment market and allows a whole new demographic of individuals to invest in an area that was previously unobtainable. Secondly, it’s quick and reduces hassle, as most Real Estate Crowdfunding sites deal with all the administration involved in investing; this is especially important in a market like real estate, the admin of which is notoriously complex – crowdfunding with Bricksave means that all the paperwork and upkeep is taken care of for you. Finally, crowdfunding allows investors to get involved in projects they really believe in, helping those projects to reach completion and taking them out of the hands of big institutional investors or lenders, those that are currently monopolising the market.
So it’s clear that as the opportunities for investment grow, now is the time to get involved in Real Estate Crowdfunding.
Written by Bricksave CEO, Tom de Lucy
January 22, 2016
5 common mistakes when investing in real estate
Real estate investing has the potential to generate attractive returns for both first-time and experienced investors. Property tends to be a stable and consistent investment strategy that has traditionally outperformed …
How COVID-19 has accelerated crowdfunding investment
During the COVID-19 pandemic, traditional avenues of funding have become harder to obtain. Enter crowdfunding: an attractive, legitimate alternative investment option that’s helped businesses access funds at a crucial time. …
Where should I be investing?
Property can be a lucrative investment. To help you choose your next opportunity wisely, here’s an overview of key trends driving investments around the world. The world of investing always …