Well its about the beach, but also the numbers and access to the right deals.
- Beach – check
- AUD on the slide – check
3. Access to deals – check
The below graph shows the benefits of debt and equity crowdfunding investments compared to buying an apartment/house. Short term, stronger returns, lower capital requirements. Simple.
If you invested $50,000 on day 1 of year 1, into the following three deals:
- Apartment purchase
You can see below, how it works over the next 2 year holding period (assuming the apartment takes 2 years to build and costs $1 mil to close).
With both the debt and equity deals, your principal and interest/returns are back in your bank on day 1 of year 3. On that same day, if you were to buy an apartment, you would have to invest a further $950,000 to take ownership of your apartment and it might be worth less or no more than your initial investment. That is 1900% more investment for potentially no gain in the same period.
That is why it is now better to invest into debt and equity for short term holds in an economy where house prices are sliding backwards or stagnating.
InvestaCrowd is an online real estate capital marketplace offering debt and equity investments into real estate projects in Sydney, NYC and London. Headquartered in Singapore, deals on InvestaCrowd are exclusively available to our members only. Their are limited investment positions in each deal, and investments are offered on a first come first serve basis. To see the latest offerings and begin investing today, login and create an investor account at www.investacrowd.com
We welcome all comments and would love for you to share if you find this useful and interesting, thank you.