Let me start by saying that Real Estate Crowdfunding is essentially a form of Syndication. All that happens here is the sourcing and servicing of investors happens on an online platform. A simple analogy would be Syndication is your regular cab service then Real Estate Crowdfunding is Uber. But just like Uber which offers a bunch…
Different ways of investing in Property
Equity Crowdfunding is finally coming to Australia. Today the Joe Hockey led Treasury announced a slew of measures in the budget to help support startups. One of them being undertaking steps to bring Equity crowdfunding to Australia. This is a welcome measure and must be lauded. Australian startup business find it hard to raise money…
Types of Crowdfunding Projects
Property investments at its very basics can be broken down in two types Built up Property Development Projects Built Up property in turn can be classified as Investing for Capital Gain or Rental Yield Capital Gain is the growth in value of your investment. For instance, if you buy a house for $500,000…
Property Crowdfunding for Retail Investors has been already there in Australia
Every Property Development project typically has many funding sources. Typically a Developer will try to get as much money as possible from the bank. The reason being these days with the low interest rates it the cost of capital from bank funding is pretty low as compared to an equity return. The bank in turn…
The Risk of Fraud in Equity Crowdfunding
One of the big concerns around crowdfunding and equity crowdfunding in particular has been the possibility of fraud. Equity Crowdfunding is essentially pooling of funds for investment purposes and there are a lot of prior cases where small investors were burnt by unscrupulous operators. Real Estate Equity Crowdfunding is even more suspect as Australia with…
How Crowdfunding can prevent the next GFC – Part 2
Click here to read Part One But slowly but surely the merry go-round was slowing. Mortgage payments were being missed by people who did not deserve to get the loan in the first place and the economy was slowing down. As more people started going over the edge the weight of the bad contracts started…
Save on home Purchase with Crowdfunding
Housing in Australia is expensive, Parts of Melbourne and Sydney already rank as some of the most expensive in the world. As the APRA cracks down on lending to Investment in housing a lot of buyers as well as Developers are getting short changed. The time for crowdfunding Real estate has come. Equity Crowdfunding Real…