Crowdfunding News – All The Latest Updates
This week we focus on the latest crowdfunding news from around the world that has caught our attention. As usual we have an array of exciting news to share with you from a man crowdfunding his house on Facebook to Arsenal fans launch a crowdfunding project to pay for Lionel Messi’s wages (we think he would look better in a sky blue shirt if we are being totally honest!).
Facebook and Property Crowdfunding
A man from Lytham St Annes in Lancashire attempted to sell his property on Facebook by offering a cash incentive for people who shared his post with friends.
Josh Hocking came up with the idea after being extremely frustrated with his agent’s failure to find someone who would buy his property.
He has previously used the social networking site to find a tenant for an apartment he owned, so he thought he would try the same approach with his house.
As you can see from his Facebook post below, Josh gets straight to the point about selling his property.
“Okay! So after the huge success of putting my apartment up for rent on Facebook, I have decided to see if anyone wants to buy my Lovely house! If you share this status and I sell the house (from your share) I will pay you £1000! It’s 2 bedroom, located on Headroomgate Road in St Annes!”
“Have a look at the photos! Offers around £195,000. With 10% deposit, expect mortgage payments to be around the £875 mark!” (Estate Agent Today, November 2015).
A few days later his post was shared over 79,000 times! We haven’t heard if anyone has come forward yet, but we love Josh’s forward thinking. We don’t recommend using this approach ourselves, if you would like to have professional advice on property crowdfunding we strongly recommend downloading our FREE information pack or contacting us directly.
Image Source : The Independent
Property Crowdfunding Booms In Asia
In Asia, property crowdfunding is mostly about presales and debts, instead of equity investment, as regulators have yet to pin down the details on how they would like to govern the fledging industry. (South China Morning Post, November 2015).
At the end of last year mainland China had 128 crowdfunding platforms. plus 32 for equity crowdfunding. What is particularly interesting about these Chinese online crowdfunding platforms is that they do not target the property sector. Developers though have been using the platforms to reach out to potential buyers at a much earlier stage in order to reduce inventories.
A chairman of a property company in China mentioned that property crowdfunding is useful because it cuts construction, sales and marketing, whilst speeding up the cash collection.
Despite regulatory uncertainties which are associated with crowdfunding in this part of the world, well known Chinese developers such as Dalian Wanda Group and Country Garden have selling and raising funds via crowdfunding websites.
Singapore has also been using property crowdfunding, despite the lack of clarity on whether such investment activities should come under the oversight of the city state’s monetary authority. Property crowdfunding operator CoAssets which has been in business for the past two years and is now listed on Australia’s junior stock as it expands in the Asia-Pacific region.
It’s interesting to see that on their site crowdfunding projects are listed as “Presales”. An example of this a developer called Jalin Realty International is marketing a residential project in Melbourne. Apart from introduction of the project and contact information, the website showed minimum investment is A$340,000 and that 28 investors are interested as of Friday. (South China Morning Post, November 2015).
The Singapore company has raised over S$40 million through over 30 successful deals and is now turning its attention to opportunities in Indonesia ad China. If you have an interest in Asia and crowdfunding we recommend reading CNBC’s recent article on equity crowdfunding gains traction in Asia.
Single father feeds homeless in Denver after he was helped by crowdfunding campaign
This was our favourite and most inspiring crowdfunding story that we have heard of late. James Moss from New York, moved to Colorado, he had a job and a house lined up, unfortunately for James it fell through.
Leon Logothetis returned to see how James was getting on and found out that he got a job as a barber but had no reliable transport to get to work and was still living in a shelter.
A crowdfunding campaign was set up immediately for James and in 11 days $54,800 was raised.
To show his appreciation, James and his friends dished out sandwiches and other food to people in a local Denver park. He told a local news channel that it feels really good to help and that has a “little tingly feeling going on”.
He mentioned in a Youtube video with Leon Logothetis that he had never thought that a small act of kindness would spark such a huge reaction from the public.
James continued to share his experience with Leon and said that he has had nothing but good experiences since moving to Colorado. He stated that he received help from strangers even before the crowdfunding appeal was launched.
Image Source : The Independent
Crowdfunding Solar For Palestine
Another crowdfunding story that got our attention was from Jonathan Morgenstein, a former U.S. Marine Corps officer who served in Iraq. During his time there back in 2004, Jonathan was tasked with helping to rebuild Ramadi.When the city’s power lines were cut, as you can imagine from the images that were broadcasted back then, chaos reigned; with a strong black market for generators, fuel, and water.
Eleven years later and Jonathan is helping Palestinian people in the West Bank by using solar energy and has set up a crowdfunding campaign called Empowerment Solar.
The Palestinian electricity grid is anything but stable, with brownouts and blackouts commonplace. What electricity is available is expensive, costing Palestinian firms 10.3% more than Israelis and 64.3% more than in the USA. (Energy Matters, November 2015).
The solar energy crowdfunding campaign needs to raise $50,000 to set up operations, train installers and develop its first solar project according to Energy Matters. So far, $4,000 dollars has been raised and has less than a month to go.
Image Source : Andrew E. Larsen
Crowdfunding Messi to Arsenal
Arsenal fans have taken reports that Lionel Messi wants to a move to the Emirates with a pinch of salt, with one fan comically asking 599,999 other supporters to help pay the Barcelona maestro’s wages. (The Independent, November 2015).
The Daily Star last week reported that Messi would be happy to play his trade in the capital providing The Gunners cough up an astronomical £600,000 a week wage packet for the Argentinian.
After hearing the news, one Arsenal fan (@matt_clarky) offered to set up a £1 direct debit a week to Messi and has asked fellow supporters to follow suit. As seen below.
— Matt Clark (@matt_clarky) November 16, 2015
We love your enthusiasm and forward thinking approach Matt, but we think Messi would look better in a City shirt!
Unfortunately at The House Crowd we can’t help your club invest in buying a new striker during the January Window but we do offer an array of property investments. If this is something that might interest you why not take a browse here.
Image Source : ZeeNews
What Are Your Thoughts?
Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.
In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it.
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