Online property investment platforms are aiming to open up opportunities for people to invest in property and potentially get returns which outstrip traditional investment funds.
Jatin Ondhia, co-founder and CEO of Shojin Property Partners, told Express.co.uk these platforms aim to make property investing “accessible, simple and affordable”.
Commenting on investing in buy-to-lets, which have been historically lucrative, Mr Ondhia said: “One of the traditional ways of achieving [early retirement] – property investment and being a landlord – has been somewhat curtailed.
“The concept of early retirement is stretching further out of reach.”
“[This is because] steadily reducing tax breaks and rental yields for landlords, combined with the more recent decline in rental prices due to the pandemic, have all contributed to a fall in value of buy-to-let portfolios.
“But this does not mean that income from property is no longer a lucrative investment opportunity to help you retire early.”
The online property investment industry, which Mr Ondhia describes as a “digital disruption”, is forecast to grow from around £10billion today to nearly £600billion by 2027.
Investment in property has until now not been an option for most Britons due to the high barriers to entry.
Mr Ondhia said: “They have enjoyed supercharged returns whilst working professionals have focused on equity funds with comparatively lower returns.”
Investing in property can often require hundreds of thousands of pounds of spare capital just to start with.
This is not even considering the cost of receiving sound financial advice or the amount of time that will inevitably be sucked into an endeavour like this.
But the current requirement to invest in property online is just £5,000.
No investment is ever 100 percent safe, as has been demonstrated by two ‘once in a lifetime’ financial crashes in the last decade and a half.
However, property is considered a particularly useful asset class, especially for people looking to diversify. This is because property is mostly decoupled from the stock market, making it relatively sheltered from market fluctuations.
At the very least, property is less exposed to market vagaries than other forms of asset.
Far from an insignificant chunk of money, it does, however put property investments within the grasp of many more people than it has been available to previously.
It may pique the interests of many to know that this is now an option that is available to them, especially considering the returns it can offer.
Mr Ondhia said: “This is opening up greater investment opportunities for individuals and can help people retire earlier.”
He added: “Real estate is the world’s biggest alternative investment sector, and also very lucrative. By choosing a well diversified property-backed portfolio to invest in you can be assured that your money is working hard while you carry on with your other plans.”
When money is invested into these online platforms, the capital is pooled with the capital of other investors.
It will be invested in a mixture residential property, real estate, apartments and just about any other type of property.
For many, having another source of income during retirement can make a huge difference to their lifestyle and for many who desire to retire early, but don’t have the spare cash to invest in property, this could be just what they need.
“Ultimately, the goal is to make your savings work hard and generate a stream of passive income, both before and during the early retirement so that you can maintain a level of income while you pursue your passions.”
Furthermore, having a diversified portfolio is a crucial consideration for any experienced investor and this is also something these platforms can offer investors.
Mr Ondhia also said that real estate deals can be difficult to gain access to directly, so platforms like these also help in this way.
He said it also provides peace of mind for investors, who “can invest with the comfort that someone aligned with you has already done all the due diligence”.