How is property crowdfunding different from REITs or property funds?

Property crowdfunding, REITs (Real Estate Investment Trusts), and property funds are all ways to invest in property without buying a whole building yourself, but they work quite differently:

Direct vs indirect ownership: With UOWN crowdfunding, you own shares in a specific property project. You know exactly which building your money is in. With REITs or funds, you own shares in a company or fund that owns multiple properties – you're more removed from the actual assets.

Choice and control: On UOWN, you choose each project individually. Don't like a particular development? Don't invest in it. With REITs/funds, fund managers make all the decisions – you're along for the ride.

Liquidity: REITs trade on stock exchanges – you can buy/sell any time the market is open. Property funds usually allow redemptions monthly or quarterly. UOWN investments are illiquid – you're locked in until project completion (typically 1-3 years).

Minimum investment: REITs can be bought for the price of a single share (maybe £10-100). Property funds often require £500-5000 minimum. UOWN is £50 minimum per project.

Returns profile: UOWN targets higher returns (our average is 17.7%) but with higher risk and no income during development. REITs typically yield 3-6% annually in dividends plus potential capital growth. Property funds vary widely but often target 5-10% annually.

Fees: UOWN charges 2% upfront, no ongoing fees. REITs have tiny transaction costs but you're paying for management indirectly. Property funds often charge 1-2% annually plus performance fees.

Diversification: A REIT or fund instantly diversifies across many properties. With UOWN, you'd need multiple investments to diversify.

Tax treatment: REITs have special tax treatment (no corporation tax if they distribute 90% of income). UOWN investments are taxed as capital gains or income depending on your situation.

Transparency: UOWN provides detailed information about each project. REITs/funds provide portfolio summaries but less detail on individual properties.

In summary: UOWN offers direct investment in specific projects with higher return potential but less liquidity. REITs offer easy trading and diversification but lower returns. Property funds sit somewhere in between. Your choice depends on your goals, risk tolerance, and liquidity needs.