How to invest in property through crowdfunding

Crowdfunding is a hot topic for investors and businesses alike. Now property investment has diversified into crowdfunding too.

Crowdfunding, the means of raising finance by asking a large amount of people for a small amount of money each, usually using the internet, has been growing steadily in the UK since it became mainstream in 2013. With the value of the UK buy-to-let market currently standing at £24.7 billion it is logical that property investment through crowdfunding is now an option too.

Property crowdfunding allows individuals the opportunity to invest as little as £500 and this has already made it popular with those unable, or too prudent, to create their own portfolio. The recent changes to pension legislation mean that pensioners with access to pension pots might well use this as an opportunity to dip their toes in the water.

Sites like Property Moose, bring investors together to invest in development or buy-to-let residential properties. It claims to have invested close to £1 million. Other sites give investors the opportunity to put their money into commercial property and it’s possible to build a portfolio of properties with sums invested in each.

Investing through crowdfunding in any sector has gained popularity for good reason. Risk can be spread by investing in diverse options and unlike traditional investment it does not demand a huge amount of capital. Landlord involvement in the properties is limited too. This hands off approach will appeal to some, but might put off those who would prefer to be more involved.

As with any investment there are risks to be aware of, not only having a limited say in the daily management. Investors should understand the options open to them for selling shares and understand how and when they can withdraw profits. Although increased regulation is expected in coming years this is a fast growing industry with limited legislation currently in place. As with any investment it should be thoroughly researched prior to investment.

At Cairn we provide support to traditional investors and have a team of specialists available to advise every client; from the first time residential property investor through to those with established folios.

Our staff work with investors. We help them to understand the market and find what they are looking for. We also will help to minimise outlays for maintenance and running of properties.

If you would like to find out more about how to invest in property through us please get in touch with the team at Cairn. We are happy to answer any of your questions and have a wealth of experience available.

You can contact us several ways, through our website, via email, or by calling us on: 0141 270 7879. In addition you’ll find us on Facebook, Twitter, and LinkedIn where our staff will be more than happy to answer any questions you may have.