Can you imagine being given the chance to plan and create your own condo? For the regular consumer, this is an ambition which will never be realised, due to its expensive nature. Yet, alongside the evolution of crowdfunded design and development, such a venture is becoming more possible than you might think for West Coast Vale Condo.
With the help of crowdfunding, regular consumers can now put their own work into the planning and creation of property ventures.
In Columbia, Prodigy Networks managed to acquire US$170 million (S$238 million) after almost 4,000 investors decided to put their money into BD Bacata (refer to image), the tallest condo property in the nation in EL Development Condo.
West Coast Vale Condo EL Development
Is there any reason why this kind of crowdfunding cannot happen in Singapore?
What does property crowdfunding involve?
This kind of property based crowdfunding describes investors organising and collectively directing cash into real estate ventures. Within the average crowdfunding deal, there are hundreds (sometimes thousands) of investors who communicate via online channels.
The popularity of crowdfunding is based on a handful of important trends. For example, (1) elevated internet and mobile penetration statistics, (2) shifting social contexts in which users have developed a lot of faith in internet exchanges, (3) the influence of social media to collectivise data, (4) the ability of internet resources to offer immediate feedback which can be used to refine products and services, (5) quick access to information and businesses voluntarily distributing data online, and (6) policy tweaks which reinforce the evolution of new financial channels for West Coast Vale Condo.
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Advantages and Disadvantages
One of the strongest advantages of crowdfunding is flexibility. With a reduced investment quantum, shareholders can put money into a number of different projects in a variety of locations (ideally, with varying economic ambitions) and spanning more than one asset category (housing, retail, hospitality, industrial, etc.) – all of these moves help to enhance revenue and reduce the dangers.
Plus, additional advantages include the availability of ventures usually made exclusive to institutional shareholders and a more streamlined and easy to navigate investment journey.
The primary disadvantage of crowdfunding is the liquidity deficit. The majority of investments rest on no secondary market and so shareholders must retain EL Development West Coast Condo investments for a long time.
Scope of the Market
The property based crowdfunding sector has seen extremely robust expansion over the last three to five years. According to Massolution – an international crowdfunding agency – the market is predicted to become twice its present size this year and be worth US$2.5 billion.
The biggest market in the world is still North America, which is worth US$1.4 billion. It is chased by Europe, at US$1.1 billion and all of the other markets at US$80 million. This amount of exchanges is quite lowly though, especially when contrasted with the US$770 billion in commercial property investments secured internationally every year. It clearly shows the huge amount of options open to international property crowdfunding channels for West Coast EL Development Condo.
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Independent Markets – America, Britain, and Australia
Within mature markets, like those of Britain and America, most of these crowdfunding channels are independently managed and handled, rather than being regulated by real estate developers themselves.
The channels EL Development West Coast Condo emphasise either the partial ownership of real estate (Realty Mogul), financial support for property developers (Fundrise), or first charge mortgages to shareholders (LendInvest).
Developer Centric Markets – China
The market in China is not quite the same as in the US or Great Britain. The channels here are owned or regulated by big businesses and independent options tend to be pushed to the side lines.
The EL Development Tender Wanda Group is one of the most high profile crowdfunding companies in China. It operates the crowdfunding platform 99Bill, which has sourced enough money to fund five malls in the country. The ‘Stable Earner No One’ scheme was extremely effective and sourced 5 billion yuan (S$1.1 billion) in just seventy two hours.
Crowdfunding in Singapore
Singapore operates a closely controlled system of capital acquirement. The enterprises and crowdfunding channels which want to source money from outside investors have to adhere to strict policies. This year, the Monetary Authority released a guidance report (Facilitating Securities Based Crowdfunding) to help make sure that the rules are met.
The market in Singapore is made up of both independent and developer centric crowdfunding channels. In fact, it would come as little surprise to most if a large scale developer (such as CapitaLand) were to create a unique crowdfunding resource, just like 99Bill from the Wanda Group. The development giant is currently leading calls for more transparent regulation.
At the moment, the country is trying to gain the status of an intelligent and responsive financial hub – the government is keen to support this ambition and is backing ventures which contribute to it.