5 factors will revolutionize real estate investment online
Crowdfunding has become one of the most powerful tools on the Internet for collective funding. Technology has allowed the promoters of any type of action to be approached with potential investors: from solidarity goals to even defraying expenses of artistic productions. And this method to get financial resources has also come to the real estate market.
Different fintech projects have been consolidated by the thrust of crowdfunding and many startups have flourished thanks to the good evolution of these initiatives. Investors have been interested in real estate crowdfunding platforms.
Although this technological evolution already settled in other countries years ago, in Spain it has taken longer to start working. Currently there are several projects to obtain financing of properties and buildings through this type of collective investment, mainly in Madrid and Barcelona, although the recovery of the market in other parts of the country will expand the scope of this crowdfunding.
Real estate crowdfunding, the future of investment is here
As with any investment, you always have to take into account the risks that operations can entail. For this reason, there are several factors to take into account when deciding to become part of real estate crowdfunding, a business that will grow exponentially in the short and medium term:
1️⃣ Power of decision and transparency:
Unlike other investment mechanisms, the user always has the final say when deciding on a specific crowdfunding project. In addition, you have the possibility to consult all the information of the promotion or property in particular. Thanks to the Internet and the different platforms, you will have all the information you need to know what type of housing you are going to invest in, its location, the market value of the neighboring properties, etc.
2️⃣ Technological revolution:
Like so many other sectors, the digital and technological revolution that we live in will also change the way of understanding real estate investments. These types of platforms combine various technologies that help investors make their decisions: big data, virtual reality, home automation... All in order for the user to have more and more data about the property in which he wants to invest. The improvement of security standards in all security channels will also encourage more and more users to join this real estate crowdfunding.
3️⃣ Diversification of investments:
Spain is still a country that bets heavily on real estate investments. According to the latest data from the Bank of Spain, 80% of families have a home on property and their average patrimony is around 120,000 euros. That is, despite the economic crisis and the bursting of the house bubble in 2008, Spain still bet on real estate. For this reason, real estate crowdfunding stands as the preferred vehicle for new generations to be able to direct their investment strategies to other types of more traditional financial products.
4️⃣ Greater freedom:
As they are financing platforms that even allow contributions of 50 euros, the user has more freedom to decide on where and how much to invest. The bureaucratic procedures are minor and the financial requirements are also unlike the traditional real estate investments, where the small users had more obstacles to be part of the financing of a property.
5️⃣ International interest:
Although real estate crowdfunding was born in the United States and the United Kingdom, it is increasingly popular in other countries. In Spain, only in the last half of 2016 online real estate investment operations grew 59%, with an average investment of 1,117 euros. In addition, almost 35,000 people have already invested in some of the online platforms that exist in Spain to invest in real estate.