Episode 106: Crowdfunding: the future of property investment?

[The Property Hub 39]

“Crowdfunding” is a phenomenon which has changed the way companies, creators and businesses are able to raise finance - but how does it work when applied to property?

 

That’s what we discuss on this week’s show - covering:

• What crowdfunding is


• Under what circumstances it can be beneficial for people who want to invest in property


• What the dangers are


• Whether it’s something that, right now, you should be considering

Listen to the show for all the details!

 

Listen to the episode now: http://thepropertyhub.net/crowdfunding

 

Is a crowdfunded property something you’d consider investing in?

If not, why not?

 

Join in the discussion below!

[DrKidd 50]

How tightly regulated is this new crowd funding compared the trading stocks and shares?

What's to stop the investor leading the investment turning into a rogue trader?

For example; the value of shares may go up and down depending on the surrounding markets and dividend performance. The dividend payout for crowd funding is directly linked to rental income. If there are any voids in the property the dividend is not paid out. If share price was to drop because of poor performing dividends, what's to stop the investor buying up more shares at a cheaper price before addressing the void?

[Rob D 370]

I can't believe it's been four years since we covered this on the podcast! The sector has matured a bit since then, and I recently wrote a comprehensive guide to property crowdfunding that goes into some of the risks, and who it's likely to be right/wrong for. I've made a note to return to the subject on the podcast soon too!

[steveng 0]

Hi, has anyone had a positive experience with Crowdfunding? I've checked out Rob D's review of Property Partner on Property Geek. I understand Property Partner is one of more renowned property crowdfunding platforms. I can see that one of his properties was up by 17% after 2.5 years, so there is some good potential returns if you select the right properties. I've searched the forums on here, but there doesn't appear to be much interest for crowdfunding.