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In recent years, the real estate market has become increasingly accessible thanks to innovative tools like crowdfunding. An interesting alternative for those who want to make their savings grow by investing in real estate. Not only for the traditional purchase of an apartment, but also to invest small sums in real estate projects and obtain interesting returns.
Casavo has recently started a partnership with UpsideTown, an Italian real estate crowdfunding platform, with the aim of spreading greater awareness on finance and investments and allowing its customers to invest small amounts of capital in the real estate sector, perhaps just while waiting for the right time to buy their dream home.
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What is real estate crowdfunding?
Real estate crowdfunding is a form of collective investment in which multiple people contribute scalable sums of money (generally starting from 1,000 euros) to finance real estate projects, such as the renovation of entire buildings or portions, the subdivision of large properties, or the construction of new residential complexes. In return, investors receive a percentage of the returns generated by the project upon its completion.
This investment method is particularly advantageous for those who do not have large amounts of capital but still want to enter the real estate market. With scalable and affordable amounts, it is possible to participate in diversified projects and reduce the risks associated with investing in a single property.
Why could real estate crowdfunding be right for you?
- Accessibility: thanks to crowdfunding, you don't need to be a millionaire to build a real estate portfolio. Even those with a limited budget of a few thousand euros can participate in high-level real estate projects.
- Diversification: instead of concentrating all your savings in a single property, you can spread your investment across multiple projects, reducing risk.
- Portfolio rotation: The duration of projects is generally between 10 months and 1.5 years, depending on the type of intervention being financed (e.g., the enhancement of a property or its construction from scratch).
- No entry fee: investors do not incur any costs to participate in the initiatives, nor are they required to pay any investment tax, except for 26% on profits.
- Transparency: Real estate crowdfunding platforms are financial operators subject to the supervision of the Italian authorities, like asset management companies. Therefore, they follow rigorous and codified processes for selecting the initiatives to propose to investors and provide complete information sets for each operation.
- Simplicity: in just a few clicks, it is possible to participate in selected real estate projects, without the need for notary deeds and thanks to intuitive digital platforms that are accessible even to those without advanced financial skills.
- Attractive returns: returns are generally double-digit and represent a potential alternative to other traditional investment instruments, such as deposit accounts or investment funds.
Beware of risks
Like any investment, real estate crowdfunding is not without risks. Projects could suffer delays, additional costs, or, in the worst case, fail. To protect investors, however, there is a rigorous preliminary selection process for opportunities, which is carried out by the platform in a professional manner: not all the projects presented are published on the platform, but only those with solid fundamentals and which are proposed by competent and deserving operators.
How to invest with real estate crowdfunding on UpsideTown
- Register on the platform and start receiving updates on the best investment opportunities in the real estate sector.
- Analyze the documentation of each project to evaluate its details, potential return and level of risk, so as to choose the option best suited to your profile.
- Invest and monitor the progress of your investment thanks to the updates provided directly on the platform. crowdfunding, by relying on a transparent solution like UpsideTown.
Conclusion
Real estate crowdfunding represents an interesting opportunity for those who want to approach the world of financial investments in real estate without having to face large initial outlays. If you're looking for your first home, it could be a way to capitalize on your savings while you continue exploring the market.
Before you begin, however, inform yourself well and carefully evaluate the risks. Crowdfunding is an investment tool and as such carries financial risks, but with the right strategy, it can become a valuable ally in building your real estate future.
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