Property crowdfunding projects are now the investments of choice for millennials according to a PropTech platform.
Shojin Property Partners claims to have seen a 20 per cent increase in millennials aged 18 to 30 investing in property crowdfunding projects since launching it launched last year, with the demographic now accounting for almost fifth of all who invest through the firm.
The largest group of crowdfunding property investors are aged 30 to 39, followed by 40 to 49 year olds; beyond that the number of crowdfunding investors declines with age.
“With interest rates so low, millennials are losing money keeping it in a bank due to the rate of inflation. This, combined with out-of-reach property prices, is driving an increase in 18 to 30 year olds investing in property crowdfunding” claims Jatin Ondhia, Shojin’s chief executive.
“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” he adds.
His platform allows investors to make a minimum investment of £5,000.