Tag Archives: crowdfunding investments

Crowdfunding for the Real Estate Market

Crowdfunding involves the gathering of money from a huge group of people to fund a venture such as a start-up business, startup company, or campaign. It's usually conducted via the internet. The method of pooling tiny amounts of cash to achieve an expense-intensive goal seems to be expanding to investment opportunities that require a significant amount of capital, specifically real property.

Presently crowdfunding for real estate is becoming very popular across the United States, partially due to the new law that allows the crowdfunding of funds online However, laws in Asia might hinder the expansion of these platforms for investment. You can also check out the real estate crowdfunding platforms online.

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Although crowdfunding is just beginning to take off, there are a variety of reasons to believe that it will soon be the next biggest thing to happen on the Asian property market. If you think about it, co-ownership for properties has been practiced for a long time in different countries. It is only when using the internet as a distribution channel the process is simpler and less costly due to the elimination of fees, middlemen, and the complexity. 

Crowdfunding is just an extension of what is. Crowdfunding can also make the market for property easier for investors to access by allowing them to buy a portion of a retail store or office building type of property. These types of properties generally have higher rental yields than a home however are extremely expensive for most people.

While real estate crowdfunding appears like it could eventually make an appearance across the Pacific to the U.S., the risks in the absence of regulation, privacy concerns for both parties, and other concerns have some people doubtful.