An increasingly popular form of investing in property, the number of crowdfunding websites has soared in recent years. This practice particularly appeals to individuals who have smaller amounts of capital to invest – as little as £10, in some cases – and who would have been excluded from investing in larger development projects in the past due to lack of funds.
A form of ‘pooled’ investment, developments or existing buildings are purchased by the managing company and, as a crowdfunder, you receive an income from its rental potential or sale. The crowdfunding platform takes their cut from your profit or includes it in the interest rate you’ll receive.
This also allows you to become a buy-to-let landlord or property developer without any of the associated hassle.