Crowdfunding has seen many changes in the past few years with more and more individuals turning towards crowdfunding to raise funds for various things. Crowdfunding has found its application in several fields and the newest addition to this list is crowdfunding mortgage.
Yes, there is now a way to opt for crowd funding mortgage. Crowdfunding mortgage seems a better alternative to taking a loan from a bank to buy a house. It also helps to avoid all the hassles faced because of these traditional methods. Crowdfunding mortgage has seen a huge rise in the last few years. As many people are opting for crowd funding mortgage to purchase a house.
Is crowdfunding mortgage beneficial?
There are many areas where people are opting for crowdfunding. From people trying to crowdfund their businesses to their wedding, almost everything can be crowdfunded nowadays. In the light of all these, crowdfunding mortgage doesn’t seem to be a bad idea. Helping individuals in purchasing their home through crowdfunding mortgage can prove to the best gift that anyone can give. Although, crowd funding mortgage seems like an intriguing idea, it also has some of the drawbacks.
The hardest thing to do while going for crowd funding mortgage is to convince the crowd about why the people should give money to buy a house. It is very essential to make them see that crowd funding mortgage is not a bad idea. And one should have a really good backstory to support their crowd funding mortgage campaign.
Crowdfunding mortgage can only work if the crowd feels that there is a need to go for crowdfunding. And the campaign is not just an attempt to avoid the hassles of taking a loan from the bank. There is another thing to think about while going for crowdfunding mortgage. Most of the crowdfunding platforms are not free. They charge some amount of the money raised by the campaign. It is important to analyze the goal to be reached by the crowdfunding mortgage campaign carefully. And even take into account the fees of the crowdfunding platforms.
Investing in crowdfunding mortgage is not like crowdfunding other things. While opting for equity-based crowdfunding, an investor gets some tax relief, but this is not the case in crowd funding mortgage. Investing in a crowd funding mortgage campaign is not going to get the investors a relief in the tax payment. Crowdfunding mortgage is more like gifting some money to someone to help them purchase a house.
Although, opting for crowdfunding while purchasing a house is growing popularity day-by-day, but even today many people still like to take the traditional way to get the funds for buying a house. Taking loans from banks is still more popular than crowdfunding, but in the future, even this sector of crowdfunding seems to rise.
Even though, crowdfunding mortgage might pose some problems and seem complicated, it can also prove to be very beneficial if it is done right. Proper planning and marketing can help an individual to raise the funds for buying a house and save them from the hassles of taking a loan.
