The revival of crowdfunding beyond COVID-19

Crowdfunding, also known as crowdfunding, is now very well known and widespread. It allows a project owner to rely on the financial support of people to finance his idea. This type of financing is particularly popular in the real estate sphere, appreciated by real estate developers. This allows on the one hand the project owner in power to finance its realization. But also offers benefits to “investors” such as a return on investment. However, there are also risks, which appeared to be increased by COVID-19, such as the risk of bankruptcy or default of the promoter. In this case, investors lose their investment…

A real estate crowdfunding that does not know the crisis

COVID-19 paralyzed many industries for several months. It has put many parts of the national economy at risk. However, one sector seems to have managed to cushion the shock, and even to rebound: real estate. Thanks to the desire to invest, in dynamic cities with potential, such as Bordeaux, but also through crowdfunding. To get a better return in the long run, experts recommend that participants invest several small amounts of money in several projects.

This allows both to help several real estate projects to see the light of day, but also to limit the risk of financial loss. In order to encourage investors to invest their money in real estate crowdfunding projects, there are barometers that analyze the potential of French cities. Bordeaux is a reliable value in real estate investment. It is one of the few cities that has not experienced a housing price crisis in recent years.

However, the investment is to be qualified according to several criteria: the size of the project, the reliability of the developer, but also the choice of the neighborhood. Koregraf is a real estate crowdfunding platform in Bordeaux, which highlights and presents various real estate projects. However, when investing in real estate through crowdfunding, investors do not become co-owners of the property. Their contribution allows them to complete a construction project, and then allows them to recoup their basic investment with interest. All this provided that all the lights are green. Sometimes some investments are not profitable, and participants cannot fully recover the money invested, if at all. Nevertheless, it would appear that COVID-19 is giving a good boost to this type of investment. According to Netinvestement, between January and June 2020, investment increased by 13% compared to the same period in 2019.

Real estate investment, a safe haven to develop one’s wealth

Investing in real estate is a way to build wealth. Through leasing, the investor can also secure a regular income supplement, and benefit from a reduction in income taxes. The Pinel Act is one of the laws promoting real estate investment. These are all elements that promote the development of real estate. However, to invest serenely, when it comes to a first time, it is necessary to call on the right professional, and the right platform. To invest serenely, a platform with the accreditation CIP (Participatory Investment Advisor) is a plus. By analyzing the advertised rates of return on investment, or the reputation of the site, it is possible to find the most reliable and interesting platform to invest.

2020 seemed like a black year for many industries, affected by slowed or even halted net activity. However, real estate enjoys ideal conditions to invest at this time, with low lending rates, and the disposition of households to investment. With the dynamism of cities like Bordeaux and the proliferation of construction projects, the tone is set. This year, marked as a difficult year, will be an important year for real estate. A year under the sign of crowdfunding, and investment.

Sources:

Homunity – Why should we invest in Bordeaux and in which neighbourhoods?

Koregraf: Crowdfunding Real Estate – Crowdfunding Platform

Abonnez-vous à la Newsletter