“Investing for the long term offers many advantages that investors who try to time the market, or day-trade over the short term, simply can’t take advantage of,” writes CrowdfundUP.
Long term investment is a term that’s hard to define. It often depends on the asset being invested in. Day traders in stocks consider an overnight hold long term, while a company investing in headquarters might consider a 30-year investment long term. For individuals, the most common long-term investment falls between seven and ten years and is often part of a retirement savings plan.
Making a good investment is all about balancing risk and reward. A longer-term investment allows time for the investment to percolate and weather the market and for rewards to compound over time. Historically long-term investments have a higher probability of providing a better overall return than those made over shorter terms.
One common long-term investment is real estate. Investors in real estate projects can maximize their return by investing as early as possible in order to hold for as long as possible. Until recently, investing in property was quite complicated. It required choosing the right location to achieve the highest capital growth, a lot of capital, a skilled development team and a lot of paperwork. But with the introduction of equity crowdfunding, the real estate investment landscape has become a lot easier.
And real estate investing if no longer just for the wealthy. Investment crowdfunding platforms like Small Change now offer the opportunity for everyone over the age of 18 to invest. So there is no reason not to start investing early. And there are lots of reasons to invest in real estate through crowdfunding:
- It’s online and easy to access.
- You can invest for a little as $500.
- You no longer have to be an accredited investor.
- You can choose the amount of risk you are comfortable with.
- There is no middleman, meaning more of the return should go to you.
- There is no onerous paperwork (it takes just 60 seconds to invest).
- You can choose to make a difference with your investment.
Image courtesy of RH-RP Management