Investing for longer periods of time
One of the most important considerations when investing in property crowdfunding is how long you’re prepared to wait for a return on your investment. While you can get a decent return over a couple of years on your investment, it’s worth considering if you could gain more by investing longer-term.
Owning a physical piece of property has never been more desirable. During times of economic uncertainty, housing tends to become a more attractive proposition – after all, it’s not going anywhere. It’s literally the bricks and mortar. There can be a perception of safety and security there, which people want to buy into.
And plenty of people make money from the property market. While bubbles can and do happen, and issues can arise through international fluctuation and recessions, the overall long-term trend has continued to move upwards.
When you invest very few times in property, there’s a possibility that you’ll invest a large amount during a peak in property prices, meaning that the value of your investment could move slowly or even fall. Drip-feeding your investment over time means that you’ll be investing at different times, taking more advantage of the natural rise and fall of the markets.
And the more you track the rise and fall of the market, the more confidently you’ll be able to control your investments, funding more when the market is showing more positive signs. This flexibility can be useful, especially if you put in the time to research before investing. This is because the property market is transparent, as you can search property prices and sales in local areas at any time. Whereas investing in company stocks can involve dealing with limited information at times.
Also, one of the biggest long-term benefits of crowdfunding is that you can diversify your portfolio on a much lower budget than you would be able to otherwise. You can invest smaller amounts into different types of property in different areas, spreading your money over properties that have the possibility of earning at different rates.
Dealing with property crowdfunders like Brickowner also means that you’ll be able to invest in properties you may not have been able to otherwise, taking advantage of both different investment opportunities and also their local expertise and knowledge.
Crowdfunding via management companies like Brickowner can also be better for tenants – it means that management companies are dealing with the property, rather than amateur buy-to-let landlords. So when they need something doing, they’re dealing with experienced professionals. It also means that investors don’t have to deal with the stress of working out how to handle tenant issues. In the long-term, that can be a lot of stress you don’t have to deal with.
As with any investment, there’s always risk, but looking at property crowdfunding as a long-term investment can help to maximize your returns. And when it can benefit tenants and help younger people get a start on the property ladder, it can have further value than immediate profit.
Interested in learning more about crowdfunding? Find out here