Increasing numbers of millennials are investing in property crowdfunding

By Bridging Loan Directory 20th November 2018

According to new research from Shojin Property Partners, increasing numbers of millennials are turning to property crowdfunding, as they struggle to get on the property ladder.

The firm reports that 23% of its investor network are under the age of 32 years old, with the youngest investor being just 18 years old. Over the last 12 months, the average crowdfunding investment made by millennials was £21,721, this is 32% higher than those aged 33-47 (£16,084). The largest investor contingent was those younger than 47 years old and this group accounted for around 40% of the investor database, with an average investment value of £38,000.

A report published early this year by the Resolution Foundation paints a gloomy picture for all young adults across the developed world. It highlights how incomes are depressed, jobs scarce and home ownership is slumping for the millennial generation, compared with the baby boomers that preceded them. The research also reveals that on many measures, apart from unemployment, British millennials have suffered a more significant decline than those in other countries.

Jatin Ondhia, pictured, CEO of Shojin Property Partners comments:

“The majority of millennials do not have a large enough deposit to purchase a property and the banks are giving them very low returns on any savings they have. Many millennials are facing years of saving and renting before they can even think about purchasing a property.

“It’s no surprise then that property crowdfunding has become very attractive to this age group, giving them the opportunity to get a foot on the property ladder, with an investment starting from just £5,000. Millennials are early adopters of technology, so they are happy to use their smartphones to invest small amounts of money across a range of investments.

“Many millennials don’t want to buy a property these days and are happy to move around. They don’t want to be tied down by owning a property and crowdfunding allows them to invest in property in a tax efficient manner, but not have to own it.

“We have developed a variety of crowdfunding projects so millennials can build an investment portfolio that suits their needs. If they would like to take more risk and potentially earn a higher return, they can build a portfolio that suits their needs and have more equity and planning projects. Those with less risk, can choose more bridge and structured investments.

“We offer investors a portfolio of investment products which allow them to make a minimum investment, without the tax and legislative burdens. They can spread their money and their risk across the property spectrum from low to high risk investments.”