CrowdfundUP, a Perth-based financial technology startup, announced it has launched Australia’s first real estate crowdfunding platform.
According to Massolution’s Crowdfunding for Real Estate Report 2015, CrowdfundUP will enter what is predicted to be a US$2.57 billion global market this year, two and a half times the total in 2014.
CrowdfundUP is Australia’s first real estate crowdfunding platform. It’s a Perth company, founded in 2013, and is backed by a strategic group of investors with over AU$1 billion in combined property assets.
Megara Director Chad Scott said the project was an innovative and unique way to promote the company’s high quality developments.
“Partnering with CrowdfundUP provides Megara with a strategic opportunity to target a new realm of investors. As an established, yet dynamic Australian developer, it made sense to leverage technology and we anticipate some great results.”
CrowdfundUP’s one-stop platform allows investors to browse, review, and compare multiple investment projects across the country in a streamlined, easy to access format. Investors are provided with background information on developers and their track history, project investment briefs, and key personnel behind each development. Property investments can be made with as little as AU$100, although the minimum investment requirement and rate of return will differ from project to project.
Developer partners, also known as ‘project sponsors’ on the platform, are carefully selected upon meeting minimum criteria of ten years experience in the project category, extensive track history of successful projects, and well-qualified personnel.
The platform’s comprehensive investment selection and management system allows investors and developers to handle the entire investment process directly on the platform. This includes access and coordination of required legal, taxation, shareholding and associated documentation and records – all of which is automatically saved into their own personal ‘Investment Centre’. CrowdfundUP is free to join.
“Our mission at CrowdfundUP is to provide streamlined real estate investing for all Australians,” said Founder and Managing Director, Jack Quigley. “We are here to make the investment process as transparent and accessible as possible for investors of all levels by reducing the time and capital needed to undertake the process.”
CrowdfundUP is a viable platform for:
- Retail and wholesale investors who would like access to a variety of property investment opportunities across Australia that were previously only available to the select few
- Individuals and SMSF investors who would like to invest a small portion of funds across multiple property projects to help spread their investment risk
- Investors looking to take back control of their property investment decisions while still allowing access to large scale projects in the realm of property funds and REIT’s
- Investors looking for alternative investment options that are currently unavailable to them in the capital market and/or otherwise unattainable due to the size of the investment
- SMSF investors who can’t afford the high cost of an entire investment property but would like to still participate in the property market without having to borrow funds to invest
- Experienced property developers who would like a low cost, diversified source of funding, faster turnaround times, and increased marketing and branding exposure
It’ll be interesting to see how this fares with the “bust” phase of the property boom-and-bust cycle approaching, but anything that helps keep the market moving will be a bonus.