Crowdfunding in real estate

With just €50 you can take part in crowdfunding that can reach a global level in real estate.

A rising trend in technology, culture and economy, crowdfunding has made its way into the property market, granting unique financial opportunities.

Crowdfunding in real estate involves using the system of microloans in property investment. A group of people contribute any amount of money to a real estate project in exchange for profitability. Both investors and developers can benefit by receiving returns from investment and financing outside the bank.

With a large number of crowdfunding platforms, including Urbanitae, Houseres, Privalone and Inveslar, investors can commit to a project by investing in property and renting it out or reselling by using group funds. 

Any number of people can contribute, assembling a larger investment value in a group than they could individually; non-accredited investors can contribute a maximum of €3,000 per project or €10,000 per year to crowdfunding. 

With this modern strategy, people can access the real estate sector without large investments, with very competitive profit margins which in some cases exceed 10 per cent.

However, participants should be aware that the higher the expected return on an investment, the higher the risk associated with it. 

To minimise the chances of losing money, use an established crowdfunding platform, analyse the data that the platform offers you and develop your investment portfolio by taking part in numerous projects with people from across the globe.