The global economy has been fraught with uncertainty over the past year due to the COVID-19 pandemic, prompting individuals to critically rethink their finances and investments. Investors across the globe are therefore waking up to the significant benefits offered by real estate crowdfunding.
Despite being a relatively new form of property financing, real estate crowdfunding has the potential to transform the real estate market.
CrowdProp, South Africa’s first property crowdfunding platform, says real estate crowdfunding has the potential to reshape the way properties are traditionally financed.
“COVID-19 has been an unlikely catalyst for the real estate crowdfunding sector as investors seek to future-proof their earning potential. Given that investments across other industries, especially the stock markets, are so volatile at the moment, real estate crowdfunding is seen as a stable investment opportunity in the post-COVID-19 environment.”
A robust investment in the COVID-19 landscape
While it is unclear how long the pandemic will last, the demand for real estate investment is likely to remain strong, given its historical stability.
Passive income traditionally represents one of the best ways to mitigate the risks associated with global economic uncertainty and relying on conventional platforms will get investors nowhere.
“In order to tackle modern financial challenges, investors need to leverage cutting-edge investment methods. Real estate crowdfunding not only democratises the investment process, bringing opportunities to the fingertips of virtually anyone. It is also a highly profitable investment vehicle for those seeking long-term investment solutions.”
It puts investors in the driver’s seat
Real estate crowdfunding puts the investor in the driver’s seat, offering them 24/7 access to detailed information in order to make actionable and informed investment decisions.
Modern investors understand the importance of diversifying their investments over a number of different investment classes, which is why real estate crowdfunding is so attractive.
One of the most attractive aspects of real estate crowdfunding is that it enables investors to invest in multiple projects over time, through a trusted and proven crowdfunding platform. This allows investors to spread their risk amongst various properties and build their very own property portfolio.
The future of real estate investment
Real estate crowdfunding represents the future of real estate investment. It allows investors to instantly build a diverse portfolio across location and property type without the hassle of sourcing, as well as ongoing management.
Although in its infancy, the real estate crowdfunding sector is already disrupting the global as well as local real estate sectors. It is breaking down barriers traditionally associated with real estate investing, and harnessing technology to ensure everything is done almost exclusively online. This means payments and investments can be done almost instantly.
There is no question that real estate crowdfunding will be a vital addition to investors’ portfolios in the near future. It is the future of how people will access real estate from an investment perspective. Those investors who do not add real estate crowdfunding to their portfolios will definitely find themselves on the back foot.