Millennials are known for their love for technology, advanced IT skills, creativity and acceptance of all things unconventional. However, not everybody realises that millennials are also concerned about their financial future and that they are one of the most active current investors. Evidence shows that millennials are keen on different types of investment, property crowdfunding being one of them.
According to WhatInvestment.co.uk, millennials are more likely than any other age group to invest in property crowdfunding. This casts doubt on the very common assumption that twenty-somethings have too little income or desire to save money or invest. The same source showed that over 54% of people who invest in property crowdfunding are actually aged 18-30, the youngest investment demographic. On the other hand, people over 46 constitute only 15% of property crowdfunding investors, despite popular belief that only 40-45 years olds are interested in real estate investment1.
There are several reasons why millennials are so interested in crowdfunding. A lot of young people want to save up money for a house deposit, or buy property to ensure financial stability in the future. Many of them also want to use their inheritance in a productive way.
However, the most common reason why millennials choose property crowdfunding is that they are able to invest in the property for a relatively small amount. They do not need to have large savings or take out a loan from the bank to invest in the property. In fact, 1,000 - 2,000 Euros is enough to invest in a good real estate project, which was previously impossible without significant funding. Property crowdfunding is easier, less risky and provides greater diversification than traditional real estate investment models. As millennials tend to prefer innovation and simplicity, it is no wonder that property crowdfunding is so attractive. In other words, property crowdfunding is a simple, yet effective way for millennials to benefit from a property portfolio.
According to Propertyfundsworld, millennials are expected to increasingly embrace crowdfunding. At the moment, banks are offering such low interest rates that millennials are losing money due to the high rate of inflation. This, combined with very high real estate prices, is the reason why millennials are so willing to invest in property crowdfunding2.
Millennials, being early and most active adopters of new and emerging technologies, are predicted to keep developing the property crowdfunding market in the coming years. Click here to learn more about RealtyBundles and the property crowdfunding model it offers.