Why should you get involved in crowdfunding?
Crowdfunding is a form of participatory financing
that allows even small investors (minimum investments of between €100 and €5,000) to invest in real estate (housing or offices).
What is crowdfunding?
Crowdfunding allows private investors to invest in a real estate project for a short
period of time (usually 2 to 3 years) and then recuperate their investment plus the loan interest (between 7 and 12% per year). Everything happens through online lending platforms.
Advantages of crowdfunding
As the market for construction programmes is doing well, so are the opportunities for crowdfunding. It is estimated that over 2017 the average savings invested is 4,900 euros, for a rate of return of 9.9%, and over an average period of 8 months. This is no mean feat.
Participatory real estate financing has thus become a good investment solution, provided that the company carrying the project does not go bankrupt, which is currently rare. However, there are other types of financing, such as real estate credit.