Investing in REITs and Crowdfunding in the UAE: A Trustworthy Approach
Introduction to SmartCrowd Investments
Yes, I have invested in SmartCrowd since 2022, allocating shares in four different real estate projects. Realistically, I have achieved an average net return of 5.06% per annum, though this is less than the 6 to 8% advertised. While properties may provide more substantial returns upon selling after a 5-year or longer investment cycle, it's essential to plan accordingly. Monthly rental returns are disbursed on the 11th or 12th of each month. The key to enhancing your investment is to purchase property shares during cashback offers, which inflate the return on your share.
It's important to note that when purchasing property in the UAE, the cost often ranges between 8 to 10 times the purchasing cost. Selling the property after five years, when its value increases, will recover this deficit. Hence, exiting the investment before this recovery point could result in a loss. However, the SmartCrowd platform facilitates easy and seamless deposit and withdrawal processes for managing your funds.
Trends in REITs and Crowdfunding in the UAE
There has been a growing interest in Real Estate Investment Trusts (REITs) and crowdfunding platforms such as GetStake and SmartCrowd in the UAE. These platforms offer the opportunity for individuals to invest in real estate projects with relatively low minimum investment amounts, making the investment in real estate assets more accessible.
Trustworthiness of REITs and Crowdfunding Platforms
Regulation: Both GetStake and SmartCrowd are regulated by the Dubai Financial Services Authority (DFSA) or relevant authorities in the UAE. This regulatory oversight adds a layer of credibility and confidence to these platforms.
Transparency: These platforms typically provide detailed information about their investment projects, including expected returns, risks, and property details. This transparency helps investors make informed decisions.
User Reviews: Checking user reviews and experiences can provide valuable insights into the trustworthiness and reliability of these platforms. Many users share their positive or negative experiences, which can be immensely helpful for potential investors.
Government Involvement in REITs and Crowdfunding
Government Involvement: While platforms like SmartCrowd and GetStake are private entities, they may collaborate with government initiatives aimed at promoting investment in the UAE's real estate sector. However, there is no direct government ownership in these platforms.
Support for Crowdfunding: The UAE government has shown support for fintech and crowdfunding initiatives as part of its broader economic diversification strategy. This support can indirectly enhance the trustworthiness of these platforms, making them a more appealing option for investors.
Conclusion
Investing through platforms like GetStake and SmartCrowd can be a viable option, but as with any investment, it is crucial to conduct thorough research and understand the risks involved. Seeking the advice of financial advisors can also provide valuable guidance in making informed investment decisions.