Real estate Crowdinvesting enables investors to access the property market while mitigating some of the inherent risks found in all investments. Individual investors pool their money, to reduce risk, boost return and invest easily in real estate.
Property investments offer regular income that can be higher than typical yields on dividend stocks and bonds. Stable income can provide protection and diversification against the volatility of the financial markets, and commercial real estate does not move in sync with stocks and bonds.
Crowdfunding makes real estate investing easier and more accessible
As we’ve discussed previously on the CrowdfundUP Blog, real estate crowdfunding allows investors to diversify their portfolio by investing in different asset classes in the real estate market.
8 key feature of real estate investments
While not perfect for everyone, real estate crowdfunding offers many attractive features.
Here are 8 reasons you should consider real estate crowdfunding as a way to invest in property:
- High interest rate:Real estate crowdfunding platforms cut out all the middle men and can generally offer average returns of 8%-12%.
- Histrical performance:Commercial real estate has historically performed as one of Australia's leading asset classes.
- Cash flow investing: passive income from stable commercial propertiesmeans a potential steady and predictable cash stream.
- Tax Benefits: When properly structured, commercial real estate can offer Investors an array of tax benefits.
- More control: Dealing directly with the investment yourself affords more control over the investment, rather than leaving this to a broker or financial advisor.
- Time Value of Money - The timing of all future cash flows are considered; therefore, each cash flow is given an appropriate weight by discounting the time value of money.
- Diversification: CrowdfundUP offers different types of investments, giving investors the opportunity to assume only the amount of risk that they’re comfortable with. Investors can choose between lower-risk, lower reward debt offerings or higher upside, higher-risk equity deals.
- Invest nationally: Want to invest $100,000 in 10 different markets across the country? Real estate crowdfunding expands the horizons of real estate investors - enabling wider access to other jurisdictions than otherwise would be able to access. If an investor who feels strongly about a particular market can focus on that market, even if they live halfway across the country.
As you can see, real estate crowdfunding offers a lot of benefits to many different groups of investors.
Of course, all investors should carefully consider their investment profiles.
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Mar 07. 2018