A few thoughts about early retirement
You have probably heard about property crowdfunding, but still don’t know exactly how it may help you. Learn how it can increase your chances of early retirement.
It’s an old cliche - the earlier we retire, the happier we are. However, recent unpredictable retirement fund policies together with the ongoing rise of prices rarely give middle-class Europeans confidence in their financial future.40 percent of household net income in European countries is spent on housing. As a result, mortgages, utilities and other operating expenditures are eating our budgets.
Economists say that generation X will face and Millennials will inherit a huge pension gap provoked by excessive spending and the increased cost of living. The fact that people are living longer is very positive news. The World Economic Forum report states that babies born in 2017 are expected to live an average of 100 years. This is steadily increasing the pension gap in each European country, which in the UK or Netherlands will reach $300,000 per person by 2050. Millennials are left asking the question, “where will I get money from when I’m retired?”
Two ways of increasing your personal finances
Perhaps we should all learn how to be thrifty. Frank Kinniry in the Vanguard Blog for advisors calculated that, instead of spending money on coffee every day, you can invest this sum in some highly lucrative businesses accumulate more than $100,000 wealth in 55 years. If you love gormet coffee, you may be thinking, “what is the point in having money now if you can’t afford spending it on something you want?”
Luckily there’s the other option - building passive income. As we have seen, property prices are constantly rising. In 1986, the average property in London cost £55,000. In 2014, this rose to £600,000, multiplying 11 times. However, property may not only be a costly commodity, but a good tool to protect assets and accrue them. Also, it’s not necessary to be a landlord to reap the benefits.The good news is, XXI century with its breakthrough technologies makes the real estate market more and more affordable for unaccredited casual investors.
Build wealth with property crowdfunding
One of the most affordable ways to invest in property is crowdfunding. All statistics suggest, that property crowdfunding in on the go. In 2015 the crowdinvesting market surpassed its 2014 performance by 150 %. In 2016 the crowdfunding industry raised $34.4 billion capital.
So, there’s no wonder that middle-class folks in Europe treat it as the perfect opportunity to diversify assets and increase their retirement funds. Dozens of real estate crowdfunding (RECF) platforms spread across the continent, offering different options forinvesting any sum of money from any part of the World in any offered realties.
The novel concept of “Bundles” is among the emerging trends in RECF. Bundles are offered by the property investment platform RealtyBundles. A bundle is a group of real properties collected together from all across Europe as a single investment package. The first bundle was collected in Budapest, providing that rental income from property in this city sometimes reach 20%, while its property price is predicted to rise in about 35%.
So, how can you get passive income and increase your retirement funds, using bundle-based crowdfunding model?
How it works
You invest your money in a group of properties - bundle. You can manage them personally online or delegate it to top-notch professionals, who operate on your behalf.
When the market value of properties in the bundle increases, it may expand by buying and renting new property. There’re picked only the most promising properties with the price on the go, so the value of bundle shares is estimated to rise.
One overwhelming benefit is that you control shares and investment progress online with the possibility to buy and sell shares anytime. At the same time RealtyBundles’ concept provides lower buy to let risks: your assets do not rely on the fate of a single property and market fluctuation.
At last, the concept of bundles provides higher annual yields than bank deposits, stock market, bonds or single property investments. Being a bundle shareholder, you cam earn more than 10% annual return.
As you see, it’s important to start thinking about increasing your retirement fund regardless of age, occupation and incomes. Any source of passive income works well. The more affordable it is, the less time and effort is needed to secure your financial future. Of course, not everyone can become an entrepreneur. However, we can all start to diversify assets and earn high yields thanks to crowdsourcing real estate and new property platforms like RealtyBundles.