The university’s Property Crowdfunding: Australian Investor Perspectives 2016/17 report, was conducted in conjunction with property crowdfunding company DomaCom and looked into the expectations that users have for their investments.
The report found that 33 per cent of Australians who invested in property through a crowdfunding model were aged between 55 and 64, with members of the Millennial generation accounting for only 4 per cent of respondents.
“There’s definitely an appetite among older investors for property crowdfunding,” said Dr Braam Lowies, the lead researcher on the project.
Dr Lowies said that while Millennials accounted for a smaller portion of those investing in these platforms, the amount they invested in them tended to be larger.
“In contrast, older investors make up a greater percentage of the property crowdfunding market, but they tend to diversify their investment portfolios, preferring to hold higher percentages of their portfolios in cash and cash equivalent investment vehicles,” he explained.
Collectively, the average amount invested through the crowdfunding platform was $14,263, however 75 per cent of those surveyed had invested only $10,000 or less, the report said.
Those looking for a deeper understanding of how property crowdfunding works can read Nest Egg’s interview with DomaCom’s chief executive, Arthur Naoumidis, here.