Risk management is one of the most important steps when establishing your investment strategy. Given the current climate of low-interest rates and uncertainty around stock markets, interest in private equity is on the rise, especially via online platforms.
As more investors seek to diversify their portfolio, the possibilities made available by online crowdfunding and investing platforms are ever increasing. As with every investment method, you should consider risk management before starting with crowdfunding and crowdinvesting.
Related article:Real Estate Investment for the Long Term and Crowdfunding
Historically in Australia, investing in real estate has shown to be one of the most profitable investments. The CrowdfundUP real estate crowd investing platform averages returns from 10% to 15%+ (depending on the timeframe, local market and type of investment)
Crowdfunding for real estate, for example via CrowdfundUP, has grown in popularity, along with Peer to Peer (P2P) lending models. These investing models are now competing with traditional investing and trade services. It also means that platforms must give much more information to Investors and also report throughout the investment period.
It also requires the platforms or 3rd parties to complete a proper due diligence process for the property groups and projects being put forward, something that is completed by CrowdfundUP's Credit Committee. On the CrowdfundUP platform, Investors are able to access their personalised Investor Dashboard, which keeps them up to date with their investments in real time via reports and contact with the Property Groups involved in the Investment.
The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person.
The article content is not intended to be a substitute for professional advice and readers are urged to seek their own appropriate advice before making decisions.
Any reference to a particular investment is not a recommendation to buy, sell or hold the investment.