Real Estate Crowdfunding an Affordable Option for UK Millennials

As UK property markets continue to attract investment in a dynamic of rising prices and increased affordability concerns for domestic home buyers, home ownership is fast-becoming an unachievable goal for many Brits below the age of 30.

According to research published by the UK's leading property crowdfunding platform The House Crowd in October, around 25% of under 30's say they need someone to die before they can afford to buy a property.

The survey was carried out among 1,000 18-29 year olds in the UK and highlights the value of opportunities like crowdfunding as a means for people to get on the property ladder at low entry-levels. However, although crowdfunding doesn't address affordability for those under 30 seeking to become owner-occupiers in the UK, it does provide the opportunity to get on the property ladder and grow capital that can make owning a principal residence a reality in the future.

The House Crowd's research highlighted some interesting and very sobering data:

 Millennial's feel UK property is so out of reach, with 23% of respondents saying they will have to wait until they inherit money before they can get on the property ladder.  16% would consider investing their money abroad while soaring UK house prices make domestic property unaffordable.  The survey indicates that 87% of under 30's have not been able to afford to invest in property.  54% can't afford to save a deposit.  55% say UK house prices are too high.  35% can't afford mortgage repayments.  19% don't want to be tied down to one location.

Although crowdfunding doesn't necessarily address affordability for owner-occupiers, it certainly enables investors to generate returns that can accumulate considerably over time - providing leverage for savvy investors to purchase single properties from profits made.

Having the opportunity to invest as much or as little as you wish provides the perfect flexibility for younger property investors to start small, dip their toes in the property investment world and get more committed financially as time passes. There's also considerably improved liquidity with this kind of real estate investment vehicle, which is great if your circumstances change during the course of your investment.

It pays off to think outside the box if you want to break into property investment without risking your life savings. For a start the risk element itself is dramatically minimised as crowdfunding investments generally offer robust opportunities in growth areas that have been expertly and diligently researched.

There is also the opportunity to get invested in different types of property assets including commercial premises and social housing so that you can have a diverse portfolio within the real estate asset class.

Crowdfunding is not a new concept in the investment market generally although there has been a significant surge of investor interest in real estate opportunities that is expected to increase further over the coming years. A study from crowdfunding market research firm Massolution showed that global crowdfunding experienced accelerated growth in 2014, expanding by 167% to reach $16.2bn raised, up from $6.1 billion in 2013. In 2015, the industry is set to more than double once again, on its way to raising $34.4 billion.

Crowdfunding is a compelling vehicle for many property investors and with participation possible at low entry levels; it's an investment option that is likely to gather considerable traction in 2016.