It is important to know the pros and cons of real estate crowdfunding before embarking on it. Of course, the pros outweigh the cons. Real estate crowdfunding or crowdfunding appeals to investors for various reasons. Which?
Real estate crowdfunding is available to everyone!
Having first appeared in the United States, real estate crowdfunding or crowdfunding has a number of advantages. One of them is accessibility. Indeed, almost all types of investors can invest in the crowdfunding platform. Entrance ticket remains available to all (from 200 to 1000 euros per investment).
100% investment on the Internet. Procedures are simplified. It is usually enough to choose a project on a platform designed for this purpose. Then you are the master of your decisions. You can invest small or big money depending on your needs. In any case, you can return your savings in a short period (from 12 to 24 months). Note, however, that these savings can only be recovered at the end of a platform-funded project. In other words, it is a medium- and long-term investment.
Here are two platforms that will allow you to make a profit of up to 14.5%!
Discover the Reinvest24 platform
Discover the Peerberry platform
No restrictions and / or management fees!
Therefore, crowdfunding for real estate is available to everyone. The profit from this operation can reach 10% for certain projects. Availability is not the only advantage of crowdfunding. There are also no management restrictions. This task is entrusted to a team of professionals. Detailed reports are published quarterly. Investors who participated in financing the project through the platform are informed about the progress of construction and marketing of lots.
By investing in a crowdfunding platform, you can diversify your investment portfolio there. Thus, it becomes possible to reduce the risk inherent in the operation. Choose the best real estate projects to limit the risks.
It should also be noted that the management fee is zero in the context of a real estate crowdfunding project. Indeed, the interest rates received are less management fees. However, there are rare crowdfunding platforms that use a management fee or even a subscription fee.
(Attractive) taxation applicable to real estate crowdfunding!
Contrary to popular belief, taxation remains one of the strengths of real estate crowdfunding. This is attractive, especially for savers with a high marginal tax rate. Applicable taxation in the context of a crowdfunding project is interest on bonds.
Note that PFCs (Direct debit with a single fixed rate) is automatically applied to income related to real estate crowdfunding, ie a rate of 30%. We will remind, PFU structure includes:
- 12.8% tax
- 17.2% social tax
Crowdfunding for real estate is especially aimed at taxpayers who declare a net taxable income of less than 25,000 euros (or 50,000 euros for a couple). Thus, they are exempt from income tax provided that they submit a request for exemption from the deposit. If this is your case, then you only pay social security contributions.