More millennials building property portfolios with crowdfunding
AN INCREASING number of millennials are investing via crowdfunding to get exposure to the property market, according to research from Shojin Property Partners.
The property crowdfunding platform said on Thursday that it has seen a 20 per cent increase in people aged 18 to 30 investing in property crowdfunding projects since Shojin launched last year.
“With interest rates so low, millennials are losing money keeping it in a bank due to the rate of inflation,” Jatin Ondhia, chief executive of Shojin Property Partners, said.“This, combined with out-of-reach property prices, is driving an increase in 18 to 30 year olds investing in property crowdfunding.”
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Millennials now make up almost a fifth of investors on the platform, according to the research.
“This age group will increasingly embrace crowdfunding, as they are early adopters of new and emerging technologies and are keen to try innovative ways to invest,” Ondhia added.
“Being able to invest smaller sums of money is also very attractive to millennials, enabling them to dip in and out of property. They have potentially large investing power and crowdfunding offers them an opportunity to spread risk.”
People aged between 30 and 39 make up the largest group of crowdfunding property investors, at 44 per cent of Shojin’s users. Meanwhile, 40-to-49-year-olds make up 23 per cent.
The company has raised £21m for projects since launching the platform in September last year.