Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Aussie investors see property crowdfunding as low risk

investment/funds-management/crowdfunding/alternative-finance/

7 July 2017
| By Oksana Patron |
image
image image
expand image

Australian investors see property crowdfunding as a low to medium-risk investment vehicle that yields low to medium annual returns, according to the Property Crowdfunding Report on Australian Investor Perspectives 2016/17.

The study, which was prepared by academics from the University of South Australia in partnership with DomaCom, found that the Australian property crowdfunding investment environment attracted a mix of investors who were mostly comfortable with investing small amounts of money, with a reasonable degree of financial knowledge but who were uncertain to make investment decisions.

As far as the demographic profile of investors was concerned, the property crowdfunding investment managed to draw investors who were:

  • Mostly men between the age of 55 and 74;
  • Had on average an annual income of less than $200,000 per annum; and
  • Held a diploma or certificate as academic qualification.

The report also found that less than four per cent of respondents were younger than 35.

Furthermore, the average amount of funds invested in a property crowdfunding platform was $14,263, with the majority of investors (75 per cent) investing $10,000 or less in property crowdfunding. Also, according to the study, 20.78 per cent of their total portfolio was invested in property crowdfunding.

At the same time, a clear majority of investors had a long-term view when investing in property through property crowdfunding platforms, with 77 per cent of respondents indicating that their ownership expectations is future ownership with expected returns based on both capital growth as well as rental income returns.

The report also found that an average of 95 per cent of portfolios were held in Australia, while 9.8 per cent respondents said they held investments in Asia, 8.2 per cent in the United States, followed by 6.6 per cent in Europe and 4.9 per cent in the rest of the world.

The type of property crowdfunded projects that investors were most interested in were the rural projects (77.4 per cent), followed by commercial (27.4 per cent) and then residential (25.8 per cent).

“Based on international trends, crowdfunding is a rapidly growing field of investment, and this is also true within the property crowdfunding environment,” the report said.

“Australia is still in its infancy as far as regulation and legislation, as well as academic and other sources of information, around property crowdfunding.”

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

4 days 3 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

4 weeks 1 day ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

6 days 21 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 1 day ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

1 week 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND