Over recent times, property crowdfunding has become the hottest way of turning savings into profits through shrewd investments – particularly for the millennial generation.
House prices are ever-increasing, salaries are stale and getting into property has never been more difficult, so it’s no surprise Gen Y/Millennials are taking it upon themselves to source new ways to invest its way onto the housing ladder. In fact, over half (54%) of UOWN’s investors are under the age of 30, which just shows how finance savvy aspiring young investors really are.
We’ve looked at the main reasons why millennials have fallen head over heels for property crowdfunding.
What makes property crowdfunding so lucrative?
Property crowdfunding takes us back-to-basics – owning property to make money, but with a modern twist. Rather than having to lump out huge figures, you can invest a small amount of cash into a crowdfunded property and reap the benefits of returns made on your stake.
This isn’t a virtual experiment. You invest money, you get a stake in a real house with real tenants and, in return, you get a slice of the revenue. And for as little as a £20 investment, it’s a great way to try your hand at investing.
So, why are millennials into it?
You might think that students and graduates would rather spend their money taking a gap year to travel around Thailand, but some millennials are savvy when it comes to their cash. After all, they have the best tool right in front of them to access any sort of investment – the internet. The web is full of a whole host of tools to point millennials in the right direction for crowdfunding opportunities.
With wages staying stagnant and saving money becoming increasingly difficult, investing their money into a property crowdfunding project gives millennials two things:
- A place to keep their money (i.e. their investment)
- A chance to make some cash from their savings (i.e. the money their investment makes)
Not only that, but you’ve also got that sense of flexibility to take your money out whenever you wish. If you throw your money into a fixed-term ISA, taking it out early will lose you the incentive for putting it in there in the first place.