Start Investing 💵 With As Low As 500 AED With Crowd Funding!

What is crowd funding?

Simply put, crowd funding is actually raising small capital from a large number of investors in order to fund big venture(s). Numerous examples are already working on this model! The stock market is one of them, where money is raised from small investors in the stock market in order to give them stakes in a big business. Similarly a REIT model which has been discussed in this video is also similar to crowd funding.

Take an example of someone who want to invest in the stock market but cannot do so because of their lack of experience. They might as well, out of fear, refrain from investing directly into stock market and would opt for mutual funds in order to minimize the risk and rely on professional services. Similarly, anyone who wants to climb a property ladder can be reluctant to do so, either because of lack of funds or experience. Here, crowd funding can help mitigate both the bottlenecks.

The idea of crowd funded investment isn’t new and has been taking place since older times, but with modern crowd funding platforms, whether for charity or for investment purposes, you’ll need a mandatory seal of approval from relevant authorities in relevant countries. Whenever you invest in such a platform, do make sure of such regulations and approvals from authorities.

Your chance of becoming a property 🏠 owner in Dubai!

Dubai has always been considered a hot avenue for property investment – with laws favoring anyone who want to invest in Dubai real estate, it has been a magnet for investors all across the globe! However, skyrocketing real estate prices make it difficult for an average person to even think about investing in real estate. Moreover, as most of the investors are not living in the UAE, or have lesser time to research the market thoroughly before investing – it makes perfect sense to go for a crowd funding platform in order to address both of these issues.

Now that we know the gist of what crowd funding is, with the context of UAE, Smart Crowd is a very reliable local platform which helps you to climb your property ladder dream within no time.

In case you are interested to invest in a crowd funded property in the UAE, you can signup using the referral link and earn 250 AED bonus once you fund your account

Smart crowd is the platform where you can own a property on fractional basis for as low as 500 AED. They have listed 70+ properties already which are funded through them and are constantly bringing more properties from Dubai on regular basis. Recently, they’ve been venturing into overseas market from the UK as well – but that still hasn’t been materialized.

Some important aspects of Smart Crowd ☑️

A few important pointers are mentioned below in case you want to invest through smart crowd:

• ✅ The fee structure of smart crowd is very transparent and is even less than what you would have paid in case you purchase a property directly by yourself:
  • Entry fees: 1.5%
  • Exit fees: 2.5%
  • Annual charges: 0.5%
• ✅ You don’t have to worry about any maintenance related calls from your tenant or think about contract renewals as everything will be done by the companies hired for this matter by Smart Crowd.
• ✅ Title deed of the property will be under an SPV (Special Purpose Vehicle) and the DIFC public register will show your name under the SPV – so you have the peace of mind that your name is being reflected in a reliable authority document.
• ✅ In case you want to sell the property shares before 5 years, you might have to wait for some buyer to be available in the secondary market – and the price you will get at the time of exit will depend on a lot of conditions, same as dealing in any other property transaction.
• ✅ You will receive profits in 2 parts for this investment – one with rental yield, mostly paid out on monthly basis and the other is capital appreciation which is realized at the time of selling of your property share.
• ✅ The properties are insured against all kind of natural or unnatural hazards which gives another peace of mind in unforeseen circumstances.
• ✅ With more properties available on regular basis on the platform you can diversify instead of investing in single property with same amount of funds.
• ✅ As with all the investment platforms, they do KYC and wont accept payments from certain jurisdictions that you need to be aware about before starting to invest.

In case you are interested to invest in a crowd funded property in the UAE, you can signup using the referral link and earn 250 AED bonus once you fund your account: https://my.smartcrowd.ae/?signup=true&r=wkhan  

Things to be aware ⚠️ while investing through crowd funding!

While we have talked most of the positive aspects about crowd funding, but some factors need to be under consideration while investing in such instruments:

1. First and the foremost, there are a lot of scams in the market when it comes to crowdfunding! It is important you do your due diligence before involving with such investments.
2. Smart Crowd is established in DIFC (Dubai International Financial Center) and regulated by DFSA (Dubai Financial Services Authority) – These are the most competent authorities, you must check the company’s record before investing for similar investments.
3. While investing in crowd funding specially into real estate which is highly illiquid – one has to take a long term horizon same as the case of any regular real estate investment.

Moreover, real estate is a good hedge against inflation as well as recession (If purchased at a good price and for long term) as discussed in this writeup here. Use it for investment – not gambling!

About Myself

I post 3 videos every week on my YouTube channel on the topics of productivity & personal finance specifically for expats & in general for wider Pakistani community. Besides this, I update this website / blog on weekly basis so do visit regularly for updates – To get value out of the content, please consider subscribing both the YouTube channel and the newsletter.

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