Crowdfunding Is Heating Up In China
In just two years since launching, real estate crowdfunding has found a foothold in China. As of last year there were about 15 active real estate crowdfunding platforms, with another estimated 660 peer-to-peer lending platforms providing some sort of real estate service, CrowdFund Insider reports.
Chinese crowdfunding encompasses a few different strategies, from eREIT-esque pooling of cash to purchase a stake in an investment property to buyers pooling money to invest early and save on the sticker price of a home.
Apart from crowdfunding, P2P lending is another popular way to come up with a down payment on a house in the country, either as an investor or a prospective longtime resident. But the practice comes with risks, so much so that China’s financial regulators have officially banned it. [CFI]
