The real estate crowd funding has emerged as one of the latest channels of investment for the Indian investors. It provides good opportunity to them for diversification of the portfolios of investors and grab promising investment opportunities to them by collective partnership and linking of strong real estate markets using modern technology.
In fact, it emerged as an attractive investment avenue as the Indian real estate market emerged stronger and always yielding good returns on investments. However, traditional investments in real estate sector meet challenges like capital requirements upfront, asset management complexities and so on. In fact, the real estate crowd funding finds solutions to these problems.
The following are the salient features of the crowd funding:
• Investors can invest in crowd funds with less capital. The accessibility facilitates diversifying the portfolios of the real estate investors. It reduces the element of risk and improves returns on the investment.
• The crowd funding reduces the burden of initial heavy investment. Therefore, many investors can enter the market without having to invest huge capital. Young professionals and people with limited sources of income find it as a good channel of investment.
• Credible crowd funding platforms disseminate complete information about listed projects. It provides ample opportunity to investors to take suitable decision. The crowd funding pays full attention to protect interests of the investors.
• It facilitates investors to invest their money in real estate projects in various cities and other regions. It provides access to investors to enter the best markets which hitherto remained inaccessible.
• The real estate crowd funding has probability of giving good returns on investment. Depending on the projects and market conditions, the returns vary. As a result, it provides good opportunity to get significant returns on the investments due to strategic selection of sure shot developing projects to invest.
• In spite of many benefits, the prospective investors should know about the risk in investing in crowd funding too. The regulatory frame work in this sector is still in a nascent stage in India. The investors should take the final call after considering all possibilities to protect their interests. They should also find the routes to get out of the crowd funding investment platform.
