Times like these are a stark reminder to all of us about the interconnectedness of global markets and the unpredictability of daily life.
We can seemingly do everything right and yet get blindsided by an event such as the COVID-19 epidemic (we feel it’s best not to use the word “pandemic”). Unfortunately, when it comes to something like COVID-19, there was simply no way to predict its occurrence – it’s a classic black swan event.
So, when that happens – what can we do? Or rather, what should we do?
Should we become hysterical, empty out shelves at the grocery store and stock up on toilet paper as if it’s the single most precious commodity? Should we all resign ourselves to our impending doom and welcome an apocalyptic end?
Or should we all take a breather, accept the situation and chart out a plan to minimize disruption to our daily lives (and investments)?
At SmartCrowd, we believe a more sensible approach is the latter. Here’s the thing – when it comes to investments, most hard-working individuals often invest a chunk of their income in public equities, leaving their wealth overexposed when a catastrophe strikes. Now, by no means are we opposed to the stock market at SmartCrowd. In fact, we encourage our investors to diversify their earnings across a range of different asset classes, not just real estate. After all, our goal is to guide investors toward a financially prosperous future while simultaneously minimizing risk.
Just because you can’t predict an event does not mean you can’t prepare for it.
So, what can you do in the face of COVID-19? Or rather, how can you prepare moving forward?
Well, it makes sense to invest in assets that not only have the potential to increase in value but also provide a consistent stream of income.
At SmartCrowd all assets on the platform are residential properties, the majority of which are focused on providing well-located and reasonably priced housing to workforce renters. Why is that? Compared to other assets, residential real estate has proven better ability to withstand economic downturns; shelter, like food is a basic need rather than a discretionary expense.
And that’s why SmartCrowd exists. Besides offering people access to the world’s largest investible asset class, investors can minimize their risk by investing in tangible assets that provide regular streams of passive income.
But you might be wondering…
“Will the real estate market be affected like other markets?” Possibly. As we know by now, the global economy is complex, intertwined, and interdependent. However, that’s nothing to fear for those that have a clear plan. When it comes to real estate investing, if you have the vision to reap the benefits of passive income for a few years and sell assets in the mid-long-term future, you are far more likely to come out unscathed (and dare we say, better off).
In the end, no matter your choice of vehicle, we truly believe a platform like ours makes financial sense especially during times of major uncertainty.
By making micro-investments and building diversified portfolios, investors have the financial ability to ride out the rough waves. Despite challenging circumstances, we’re proud to state that the current investors on SmartCrowd are generating regular passive incomes between 6.5% to 10%. And that’s in the current economic climate.
Even if property prices decrease in the short-term, investors on a platform like SmartCrowd aren’t pressed to sell their assets because they can wait until the market picks up. In fact, times like today are the most opportune time to acquire quality real estate investments.
Challenges in the next few weeks…
As governments race to keep their citizens safe and healthy, both private and public entities have been disrupted and businesses across the region have had to adjust their operations at a moment’s notice. We do recognize the challenges all of us face as we find solutions to deal with this epidemic.
At this moment we ask our investors and all our stakeholders to practice patience. Expect slight delays as slowdown in government offices are likely to affect certain parts of the business. Additionally, given that cities and even countries are in lock-down (and airlines are halting flights), please accept short-term disruptions to the holiday-home properties listed on our platform.