How to get started with property crowdfunding

by Guest Contributor

21 September, 2017

By Kim Collier, founder of The Resort Crowd

The property investment sector has been a very exclusive industry for a long time. Only a select group of people have been able to invest and successfully make money from it.

Why is this so? Some may argue that there is a certain level of eliteness within the investment sector. A common belief exists that the finance industry is plagued with language that excludes outsiders. For most people, there is very little education on investment, and how to get started.

But things are changing, and we’re here to talk you through how to get started with property crowdfunding.

How is it changing?

With the development of digital, alternative finance sources online have been revolutionising the way people invest. Since crowdfunding platforms hit the scene, the sector has been opened up considerably.

There are a few reasons for this. Not only does crowdfunding provide a platform for first time investors to get started, the internet is also home to free and readily available information on how to start investing. Example one, this article.

Who is crowdfunding for?

Anyone. The beauty of crowdfunding is that the platforms do not discriminate or exclude; any Joe Bloggs with an internet connection is able to invest. It removes so much of the jargon and complication. Today, you could search for something you’re interested in and make an investment within a couple of minutes. It’s worth noting that some investment platforms will require tests and questionnaires in order to invest, so look out for that on your hunt for investment opportunities.

Why property?

Your first step is choosing something that you want to invest in. A quick google will tell you that you can invest in a broad range, from things such as education, new apps, crazy new startups to overseas property.

The long term benefits of property investment have been observed for years. It’s been said that property doubles in value every ten years, and whilst this might not be strictly true in all circumstances, capital growth still runs parallel with property investment. So, with that in mind, let’s look at where to start.

Step 1 / Do your research

Your first step is finding a platform online that provides what you’re looking for. One of the benefits of online crowdfunding platforms is that there’s a lot more transparency. Since crowdfunding generally works on a peer-to-peer basis, you can read reviews from other investors and be sure that you are putting your money somewhere legitimate.

Step 2 / Shop around

Many crowdfunding platforms and individual campaigns will offer their own benefits should you wish to invest. Make sure the investment you choose will guarantee the return you’re looking for in your own time scale. Overseas property investment is an attractive option, offering fixed returns rates for up to five years. Consider your own needs and look at the different options available before settling on the right deal for you.

Step 3 / Make an investment

Once you’ve committed to the platform and level of investment, making the payment is as easy as filling in an online form. Depending on the platform of investment, often you can purchase property shares for as little as £10.

On platforms that specialises in overseas property investment, such as The Resort Crowd, it’s easy to browse the range of resort properties in holiday hotspots. If a property is not fully funded, your investment will be refunded, leaving you to invest it elsewhere.

Step 4 / Sit back and relax

Once you’ve made your investment, you just sit back and wait for the returns to come rolling in. It’s really as simple as that!