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Real estate is one of the largest and best understood asset classes in existence. Many investors are familiar with the concept of buying, owning and letting property; it offers essential portfolio diversification through regular income, the possibility of long-term capital growth and often provides a hedge against inflation. It is also recommended that an equity-based portfolio allocate 20% of its assets to real estate. Thus investors have traditionally gained direct exposure to the real estate market through real estate investment trusts (REITs) or direct property purchases. Yet these avenues are not accessible to all investors due to high minimum capital requirements, high transaction costs, regulatory restrictions and high ongoing management costs.
For property developers, traditional lending models are often time consuming, costly and since the 2008 financial crisis, it has been much harder to secure credit from lenders due to tighter lending criteria and restrictive deadlines.
Crowdfunding has the potential to open up the real estate market to a much wider range of investors, in the same way that it is revolutionising investing into start-up companies and providing investors with strong returns and flexibility. A much larger pool of investors allows developers to raise financing for projects more easily. The figures can be staggering. Some platforms boast that they have over 20,000 registered investors and can fully fund projects in less than 24 hours.
The real estate market in particular offers a diverse range of options and can play an important role in a portfolio – consistent rental income, aggressive or defensive growth and diversification from mainstream markets, and often as a hedge against inflation. It really is a global market, covering commercial and residential property. The variety in location, property type and development stage mean that the range of opportunities for investors is almost endless.
Why should you read this report?
- An introduction to the alternative finance and crowdfunding sector
- Key benefits and risks of various real estate investments
- An overview of the real estate market, including returns
- Key benefits and risks of investing in real estate through a crowdfunding platform
- Key benefits and considerations for property developers
- How a real estate crowdfunding investment can be benefit a well-diversified portfolio
- Analysis of over 70 global real estate crowdfunding investments
Contents of the Real Estate Crowdfunding Report
- Introduction to Alternative Finance and Crowdfunding
- Investment Case & Risks of Real Estate
- Real Estate Market Update
- Real Estate Crowdfunding Platforms
- Real Estate Crowdfunding Market Analysis
- SWOT Analysis
- Conclusions
Relevance
The Report is aimed at:
- Financial advisers, planners and wealth managers
- Professional financial intermediaries
- Property developers
- Sophisticated investors
- Anyone with a vested interest in the real estate crowdfunding market
This report aims to be subjective and highlight trends and areas for consideration within the real estate crowdfunding market.
You can access the report by clicking on the button below. If you are not already registered with Intelligent Partnership you will be required to enter a few details before the report opens.