The real estate crowdfunding has grown in spite of many limiting factors, out of which the primary factor is affordability. The other hurdles that crowdfunding has jumped over are education, lack of investing experience and geography. When one talks of crowdfunding in real estate they must not forget to take into account that it has grown and continue to grow in spite of these hurdles.
Following 5 reasons explain why the future is even brighter for real estate crowdfunding for the next five years.
- Breaking the Conventional Trends
Investment in the real estate was considered as an arena reserved for the rich and wealthy. The middle class families could have not even dreamt of investing on the project of a company that is a superpower in real estate business.
Crowdfunding platforms keeping the threshold amount as low as $100 enables these middle class to invest in big and lucrative projects. The majority can earn some really big returns from their investment. The tends is believed to break away the conventional fashion of only the wealthiest getting the benefits.
- Critics cannot agree with Progress
Critics have been rigid towards the progress of the crowd funding platforms and the centre point of their argument is always the minimal number of opportunities that are present on the funding platforms. The crowdfunding concept caught the attention after the JOBS Act was passed in the United States.
The investment market is essentially growing at a phenomenal rate since then but the critics and enthusiasts are not ready to acknowledge the fact that websites are ben added periodically and have been performing well. The small and medium sized real estate enterprises have been greatly benefitted by the funding platforms. Not to mention the immense help that these crowdfunders have given to some of the big names in the business.
Internet has increased the scope of real estate investment. You need not limit yourself to the housing society project in your city or to the mall in your neighbourhood. You can invest in other states and cities or even overseas projects. This is set to increase the traffic on the crowdfunding platforms and is going to feed more capital to the borrowers.
- Community investing
While internet has made it possible to venture into different projects irrespective of the geography; people usually prefer to invest in the projects that are closer to their home. They enjoy by contributing to the development of the community and feel good that they are helping in the progress. Also, the investors can track their projects in real time and have more hold over its advancement.
- Quite Safe
We remember the crash of the economy in 2008, there was much disbelief in people at that time as one of the reasons of the downfall was Wall street. People looking for a safer investment avenue came to real estate investments. Real estate gave way to inductio of diversity and became a favourite of many investors through crowdfunding platforms.