Investor perspectives on property crowdfunding: evidence from Australia

Braam Lowies, Christa Viljoen, Stanley McGreal

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study’s objective is to investigate the perceptions of property investors of the risks and returns associated with property crowdfunding as an investment vehicle. The study contributes to the understanding of alternative property investment vehicles and how it is perceived by investors.The study focus on investor perceptions in using property crowdfunding as investment vehicle and follows a survey-based design. A questionnaire was finalised after completion of a pilot study and was distributed to existing property crowdfunding investors via email. Inferential statistical measures were used.The results show, to an extent, similarities to general equity-based crowdfunding studies. However, the uniqueness of property crowdfunding as investment vehicle may explain the insignificance of the results when related to other studies. Overall, the property crowdfunding investor seem to present cautious behaviour with a conservative perception of property crowdfunding as investment vehicle.It is recommended that property crowdfunding platforms present prospective investors with more formal regulation of the property crowdfunding industry. Such a regulatory framework may lessen the current level of uncertainty presented by investors.The study enhance the understanding of the role of property crowdfunding as alternative investment vehicle in Australia. More importantly, it went some way towards enhancing understanding of how investors perceive and behave vis-à-vis property crowdfunding as investment vehicle.
LanguageEnglish
Pages303-321
JournalJournal of Financial Management of Property and Construction
Volume22
Issue number3
Early online date6 Nov 2017
DOIs
Publication statusE-pub ahead of print - 6 Nov 2017

Fingerprint

Investors
Electronic mail
Alternative investments
Risk and return
Questionnaire
Industry
Uncertainty
Regulatory framework
Uniqueness
Property investment
Equity

Keywords

  • Crowdfunding
  • property investment
  • investor behaviour
  • investment decision making

Cite this

Lowies, Braam ; Viljoen, Christa ; McGreal, Stanley. / Investor perspectives on property crowdfunding: evidence from Australia. 2017 ; Vol. 22, No. 3. pp. 303-321.
@article{56364d87a102400cb912450c32132c49,
title = "Investor perspectives on property crowdfunding: evidence from Australia",
abstract = "This study’s objective is to investigate the perceptions of property investors of the risks and returns associated with property crowdfunding as an investment vehicle. The study contributes to the understanding of alternative property investment vehicles and how it is perceived by investors.The study focus on investor perceptions in using property crowdfunding as investment vehicle and follows a survey-based design. A questionnaire was finalised after completion of a pilot study and was distributed to existing property crowdfunding investors via email. Inferential statistical measures were used.The results show, to an extent, similarities to general equity-based crowdfunding studies. However, the uniqueness of property crowdfunding as investment vehicle may explain the insignificance of the results when related to other studies. Overall, the property crowdfunding investor seem to present cautious behaviour with a conservative perception of property crowdfunding as investment vehicle.It is recommended that property crowdfunding platforms present prospective investors with more formal regulation of the property crowdfunding industry. Such a regulatory framework may lessen the current level of uncertainty presented by investors.The study enhance the understanding of the role of property crowdfunding as alternative investment vehicle in Australia. More importantly, it went some way towards enhancing understanding of how investors perceive and behave vis-{\`a}-vis property crowdfunding as investment vehicle.",
keywords = "Crowdfunding, property investment, investor behaviour, investment decision making",
author = "Braam Lowies and Christa Viljoen and Stanley McGreal",
year = "2017",
month = "11",
day = "6",
doi = "10.1108/JFMPC-12-2016-0055",
language = "English",
volume = "22",
pages = "303--321",
number = "3",

}

Investor perspectives on property crowdfunding: evidence from Australia. / Lowies, Braam; Viljoen, Christa; McGreal, Stanley.

Vol. 22, No. 3, 06.11.2017, p. 303-321.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Investor perspectives on property crowdfunding: evidence from Australia

AU - Lowies, Braam

AU - Viljoen, Christa

AU - McGreal, Stanley

PY - 2017/11/6

Y1 - 2017/11/6

N2 - This study’s objective is to investigate the perceptions of property investors of the risks and returns associated with property crowdfunding as an investment vehicle. The study contributes to the understanding of alternative property investment vehicles and how it is perceived by investors.The study focus on investor perceptions in using property crowdfunding as investment vehicle and follows a survey-based design. A questionnaire was finalised after completion of a pilot study and was distributed to existing property crowdfunding investors via email. Inferential statistical measures were used.The results show, to an extent, similarities to general equity-based crowdfunding studies. However, the uniqueness of property crowdfunding as investment vehicle may explain the insignificance of the results when related to other studies. Overall, the property crowdfunding investor seem to present cautious behaviour with a conservative perception of property crowdfunding as investment vehicle.It is recommended that property crowdfunding platforms present prospective investors with more formal regulation of the property crowdfunding industry. Such a regulatory framework may lessen the current level of uncertainty presented by investors.The study enhance the understanding of the role of property crowdfunding as alternative investment vehicle in Australia. More importantly, it went some way towards enhancing understanding of how investors perceive and behave vis-à-vis property crowdfunding as investment vehicle.

AB - This study’s objective is to investigate the perceptions of property investors of the risks and returns associated with property crowdfunding as an investment vehicle. The study contributes to the understanding of alternative property investment vehicles and how it is perceived by investors.The study focus on investor perceptions in using property crowdfunding as investment vehicle and follows a survey-based design. A questionnaire was finalised after completion of a pilot study and was distributed to existing property crowdfunding investors via email. Inferential statistical measures were used.The results show, to an extent, similarities to general equity-based crowdfunding studies. However, the uniqueness of property crowdfunding as investment vehicle may explain the insignificance of the results when related to other studies. Overall, the property crowdfunding investor seem to present cautious behaviour with a conservative perception of property crowdfunding as investment vehicle.It is recommended that property crowdfunding platforms present prospective investors with more formal regulation of the property crowdfunding industry. Such a regulatory framework may lessen the current level of uncertainty presented by investors.The study enhance the understanding of the role of property crowdfunding as alternative investment vehicle in Australia. More importantly, it went some way towards enhancing understanding of how investors perceive and behave vis-à-vis property crowdfunding as investment vehicle.

KW - Crowdfunding

KW - property investment

KW - investor behaviour

KW - investment decision making

U2 - 10.1108/JFMPC-12-2016-0055

DO - 10.1108/JFMPC-12-2016-0055

M3 - Article

VL - 22

SP - 303

EP - 321

IS - 3

ER -