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Real Estate is an essential part of wealth building, especially for long-term growth. Property prices have been rising in the past years at a much faster rate than other investments such as the stock market. The biggest drawback of traditional real estate investing? Large amounts must be paid up front, industry knowledge is a must and the lack of diversification, as you will be stuck with a few properties, thus exposed to significant tenant risk.
Crowdfunding real estate on the other hand eliminates these risks. You can only buy a portion of a property, thus can invest lower amounts and diversify easily. Industry experts are responsible for managing the property as well as dealing your tenants. Thus, crowdfunding real estate is a great method for beginners in the real estate industry.
Crowdfunding real estate on the other hand eliminates these risks. You can only buy a portion of a property, thus can invest lower amounts and diversify easily. Industry experts are responsible for managing the property as well as dealing your tenants. Thus, crowdfunding real estate is a great method for beginners in the real estate industry.
Summary
+ Easy and quick access to real estate market
+ Low risk as can invest small amounts in various properties
- Usually long timeframe, although you can dispose your properties as soon as a buyer is found (which is relatively quick)
Investment platforms
Reward:
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★★★☆☆
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Over 7%
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Risk:
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★★★★☆
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Can diversify easily
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Currencies:
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★★☆☆☆
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Only GBP
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Availability:
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★★★★★
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Worldwide
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Min. amount:
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★★★★★
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£50
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2. Other notable mentions - I am currently not using these platforms
- Fundrise - Available to USA residents
- Property Moose - Higher fees Combines cryptocurrencies with P2P lending
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