Property crowdfunding around the world

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When you think ‘crowdfunding’ you probably think charity websites like Give a Little or Go Fund Me. Then there are the sites like Kickstarter that use the power of many to help go-getters fund everything from incredible inventions and feature films, right through to start-up businesses and getting their first novel published. Some of these kinds of platforms simply ask for generous people to partner with them financially. Others offer rewards depending on how much they give. The more you give, the bigger the reward.

Then there’s equity crowdfunding. This is when people pool their resources together to invest in something. Equity crowdfunding includes everything from a weekly Lotto ticket syndicate where everyone pitches in a few bucks every week to hopefully win the big one, right through to DIY property investing where a couple of people might pitch in to buy a property because they can’t afford to buy one themselves outright.

Property crowdfunding takes DIY property investing one step further by giving anyone who’s interested the opportunity to pool their resources to invest in property, and it’s becoming increasingly popular around the world. Some, like Estonia’s Crowdestate, raise loans for developers, while others like the UK’s Property Partner have defined exit times for investors whereby properties are sold for (hopefully) a profit after a fixed amount of time (in Property Partner’s case, the exit time is five years). Not all property crowdfunding platforms deal in residential property; India’s deals with commercial real estate, while New York-based PartBnB gives savvy investors the opportunity to buy into international holiday homes.

The Property Crowd is the latest property-based crowdfunding company to arrive on the scene, but the main difference between us and any others is that we’re a New Zealand-owned and -managed company that has tailored our service to Kiwis and New Zealand’s unique property market.

Unless you’ve been living under a rock, we’re probably aware that property prices on this side of the world have skyrocketed in recent years. That makes property investment unattainable for many Kiwis. The Property Crowd makes it possible for just about any Kiwi to get on the property investment ladder by enabling them to invest as little as $100 into PropertyShares.

Another point of difference between The Property Crowd and other property crowdfunding platforms is that we never sell our properties. Not only do we offer investment opportunities for all Kiwis, we’re also committed to creating socially responsible housing options for tenants. Long-term rentals enable tenants to plant roots in their communities without fear of being asked to leave their home at any time, thus contributing to happier, healthier homes, families and communities.

Many property investors end up becoming quasi property managers because they need to be hands-on with their tenants or houses. The Property Crowd investors don’t invest their time into our properties; we partner with some of New Zealand’s leading property managers who manage each of our properties and deal directly with our tenants, giving investors more time to focus on their returns instead of the day-to-day running of their property business.

Property crowdfunding looks like it’s going to be around for a while – it could even overtake other forms of crowdfunding. Find out how The Property Crowd works, how it’s tailored for Kiwi investors and the New Zealand property market, and how we could help you launch or boost your property portfolio for as little as $100 today.

Erin Reilly

Copywriter & Content Creator at Lingo
Copywriting, digital content & general word mastery

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