Crowd Funding for construction is growing fast
With the banks paying almost no interest on savings accounts and borrowing rates being so low investors are looking for new and innovative schemes to make their money grow faster, one of the latest phenomenons is "Crowd Funding"
which has seen a huge surge in people looking to invest in construction projects not just in the UK but around the world. Crowd Funding allows investors to buy into a range of projects, they can use any amount too, not just millions but thousands,
and with an average return of around 8 percent you can see why. The banks have indicated that they may start to charge savers for looking after their money, this is bad news for savers, some of whom have a limited pot for retirement or even a rainy day, by joining a crowd funding group they can invest a little or a lot, the choice of ventures is broad and varied.
What sites provide Crowd Funding?
There is a large range of sites that offer developers and house builders the option to raise capital though crowd funding, as with all transactions of this type and value it's definitely worth doing dome research before investing, as with all types of online transactions that involve money there will be an element of skulduggery out there, so always ensure you check the site out first, by googling the name of the site you can find information on how they perform, whether they are genuine or not and what type of returns you can expect on your investment.
What legislation is there?
Well you would expect that something that can easily involve investors parting with tens of thousands if not hundreds of thousands of pounds would be heavily regulated, you'd think so, but there is very little in the way of legislation to protect investors and their hard earned cash, the financial conduct authority have release a policy statement that covers crowd funding that can be downloaded here and we would certainly recommend having a read through before clicking to invest.