CoAssets, a Singaporean based crowdfunding platform company is looking to shake up the Australian property market by giving smaller investors and younger home buyers an opportunity to own their own real estate.
A quick recap on crowdfunding: it is the practice of obtaining financing for a business venture, or project by amassing small quantities of money through donations from a variety of people, usually using the web.
We already have Airbnb shaking up the hotel industry.
Uber is challenging the traditional taxi model.
If CoAssets gets the idea off the ground here (first they need to obtain a license), then financially struggling buyers with just $1000 to invest stand to benefit. The firm offers to crowdsource between around $1 to $5 million per project. Up to now, the company has managed to pool $39 million for numerous projects across the world.
“We are really a platform that allows people to put their property deals on the site and reach out to funders. Businesses that have a lot of potential can put themselves on the site and allow funders to put in for as little as $1000. [For] some of the people who are looking to crowdfund for their homes, this could be a way for them to do it,” outlined Getty Goh, chief executive of CoAssets.
A $1.5 million property in Sydney is an excellent example of how crowdsourcing can be an immense boon to financially-tight Australian investors.
The funds for the house were raised within just an hour and the project attracted individual donations up to a whopping $350,000!
“Anyone considering this type of funding needs to make sure they know exactly what they are getting themselves into before they sign on the dotted line. It’s also important to make sure everything is legitimate and in-keeping with our country’s investment laws,” reminded Jessica Darnbrough from Mortgage Choice, the home loan broker firm.