More and more millennials are investing in property crowdfunding

More and more millennials are investing in property crowdfunding


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An increasing number of millennials are turning to property crowdfunding as they struggle to get on the property ladder, according to new research from Shojin Property Partners.

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The firm found that 23% of its investor network are under the age of 32 years old, with the youngest investor being just 18 years old. Over the last year, the average crowdfunding investment made by millennials was £12,721 – 32% higher than those aged 33-47 (£16,084).

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The largest investor group was those younger than 47 years old, which accounted for around 40% of the investor database, with an average investment value of £38,000.

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These figures come after a report published early this year by the Resolution Foundation, which painted a gloomy picture for young adults across the world. It highlights how jobs are scarce and home ownership is slipping further out of reach for the millennial generation, compared with the baby boomers. The research also reveals that apart from unemployment, British millennials have suffered a more significant decline than those in other countries.

Jatin Ondhia, chief executive officer of Shojin Property Partners, said that with the majority of millennials not having a large enough deposit to purchase a property and the banks giving them very low returns on any savings they have, many are facing years of saving and renting before they can even consider purchasing a property.

“It’s no surprise then that property crowdfunding has become very attractive to this age group, giving them the opportunity to get a foot on the property ladder, with an investment starting from just £5,000,” he added.

“Millennials are early adopters of technology, so they are happy to use their smartphones to invest small amounts of money across a range of investments.”

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According to Ondhia, many millennials don’t want to buy a property these days and are happy to move around, and crowdfunding allows them to invest in property in a tax efficient manner without having to own it.

“We have developed a variety of crowdfunding projects so millennials can build an investment portfolio that suits their needs,” he continued. “If they would like to take more risk and potentially earn a higher return, they can build a portfolio that suits their needs and have more equity and planning projects. Those with less risk can choose more bridge and structured investments.”

“We offer investors a portfolio of investment products which allows them to make a minimum investment, without the tax and legislative burdens. They can spread their money and their risk across the property spectrum from low to high risk investments.”

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