Franchising, retail, business
22/04/2015
For generations, investors have regarded real estate as the safer, less volatile opportunity compared to stocks and startups. During the economic crisis a few years back, however, property values plummeted and a substantial amount of money was lost. In a recovering market, investors are beginning to turn back to real estate, but only to discover change.
Since 2013, the crowdfunding industry has risen considerably. Many economists believe that 2014 will only extend this growth, with real estate crowdfunding as a major catalyst. Compared to post-recession values, many cities around the world – London and Hong King, for example – report markets not only healed but also improved. Alongside other advancements in the industry, it’s never been easier for investors to connect with property listings and buy in.
Real Estate Crowdfunding Has Its Advantages
As alluded to above, investors see real estate crowdfunding as an excellent way to bring stability and diversity to their portfolios. After a campaign wraps up and construction commences, it’s only a matter of time before investors start receiving their portion of the property’s income, not to mention a share of the closing value if sold. In contrast to the traditional process, many find this method more flexible and timely. Most importantly, however, real estate crowdfunding is direct.
Previously, investors would support real estate companies, unsure what buildings the firm may or may not erect. Now, investors put their money directly into a property or project without backing the entire company. In fact, investors can even visit locations and ask very pointed questions, reviewing past listings and successes all the while. Since crowdfunding works on a project-to-project basis, this also means investors can make numerous small contributions and spread the risk.
Real estate crowdfunding is certainly an industry to keep watch of. Last year, we identified the market’s starting potential, but sundry doors have opened since. Still, many of the trends and benefits remain the same. For those interested in this form of crowdfunding, review our list of Top Real Estate Crowdfunding Portals.
Fonte:http://www.crowdclan.com/real-estate-crowdfunding-momentum/