Historically, Buy & Hold investments on the platform have delivered annual returns of around 15% on average, while Flip opportunities have targeted net returns of up to ~30%, depending on the property and market conditions.
Income Variability in Holiday-Home Investments
Investing in holiday-home properties through SmartCrowd introduces variability in monthly dividends or rental income. Unlike standard rental properties, holiday homes are influenced by factors such as occupancy rates, seasonal demand, and vacancy periods, which can result in fluctuations or non-payment in certain months.
With real estate, there are two factors that influence your returns:
Monthly Rental Income/ Dividends: Rental dividends are the income generated from a property once it’s occupied. While dividends are typically distributed monthly into your SmartCrowd wallet, they may vary depending on factors such as occupancy rates, seasonal demand, and vacancy periods, especially for holiday-home properties.
Potential Capital Gains: Capital gains occur when a property rises in value over time. Meaning when a property is sold in the future, your profits will be proportionate to your amount of shares.
These combined, help you earn from real estate investment through SmartCrowd!