Explore how Smartcrowd can diversify your portfolio by integrating it with offshore financial products for enhanced returns.
This Smartcrowd Review will consider the tech platform for real estate investing to guide prospective investors in terms of who the company is, what it offers, how it performs, how to invest, what are the costs, as well as the advantages and disadvantages.
Those interested in real estate investments should carefully assess if such investment option suits their portfolio and if Smartcrowd is safe, reliable, and most apt for their situation.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
Real estate investing is risky, rental income is not assured, and the property’s market value may decrease. These are only some of the reasons why we recommend getting financial advice, as this review alone shouldn’t be the basis of your investment choice.
Smartcrowd Review
What is Smartcrowd?
Smart Crowd Limited or SmartCrowd is a Dubai-based online real estate investment platform rolled out in 2017 that allows investors to collectively invest in different revenue-producing real estate projects in the United Arab Emirates.
Customers have given SmartCrowd a 4-star rating on Trustpilot, suggesting that they are generally satisfied.
Is smart crowd legit?
The Dubai Financial Services Authority regulates Smartcrowd. It holds a license to function as a crowdfunding platform in the UAE.
Smartcrowd Investments
You might wonder how Smart crowd investments work.
You can choose to own stock in a different legal organization that owns the property, or you can invest directly in real estate assets.
Your investment in this business most likely meets the criteria for an illiquid investment because it isn’t listed or traded publicly. This indicates that owing to low demand from possible purchasers, selling the stake would prove difficult. As a result, you need to be prepared to stick with your money for the whole investment term.
Client money is handled by Smart Crowd and safely kept in an exclusive client account with Emirates NBD.
Smartcrowd minimum investment
Interested investors should shell out at least 500 UAE dirhams to participate.
Smartcrowd performance
In terms of rental income, the platform’s properties are performing well when compared to the market average returns. For instance, in comparison to the typical market performance in the DIFC, Dubai Marina, and Palm Jumeirah, properties managed by SmartCrowd are producing greater rental returns.
How to invest in Smartcrowd
- You can choose to download the mobile app for iOS or Android smartphones or register for a free account via their website.
- You must confirm your email address, your citizenship, provide your current residential address, and agree to our terms and conditions.
- For the first 30 days following the creation of your profile, you will only have limited access to the investing platform. You can access some property-related information and investigate both current and potential investment prospects during this period.
- You must finish your registration in order to access independent valuation documents and/or take part in real estate investments.
- In order to comply with DFSA standards, you may need to provide extra information, which may include proof of address, a copy of your passport, and employment details.
- After registering, you can go through the properties that are available, make an investment in ones that fit your goals, top off your digital wallet with a bank transfer, and complete the transaction.
Can you get UAE Golden Visa through Smartcrowd?
Yes. There’s a minimum investment of 2 million dirhams for the Golden Visa program via SmartCrowd.
The platform manages all required documentation and processing after paying this minimal amount, and everything may be completed in as little as six weeks.
Globally, professional investors can apply to participate in the platform’s Golden Visa program.
In addition, you can keep your Golden Visa status even if you decide to sell your property by using the proceeds to make another eligible investment in the UAE.
Smartcrowd Fees
With a transparent fee schedule, SmartCrowd charges investors an upfront fee equal to 2% of the total investment amount. In addition, 1% of the investment amount is charged annually as a management fee, which covers property administration, tenant selection, rent collection, and associated services.
The overall service expenses for those applying for the Golden Visa with SmartCrowd come to 6,100 dirhams. Please note that the Value Added Tax of 76.83 dirhams is not included in this amount.
These charges include a variety of processing and administrative costs related to the application procedure.
Pros and cons of Smartcrowd Investments
Advantages of Smartcrowd
- Transparent data and pre-screened real estate investment offered
- The real estate investment platform is subject to regulatory supervision.
- Allows passive income generation.
- Operates digitally, which makes for easy access.
Risks of Smartcrowd
- You may lose out on rental income if a tenant defaults on their lease agreement.
- Real estate asset vacancies are common, but they might limit the amount of money accessible to you.
- A decline in the value of the property or unforeseen costs that must be covered out of future rental income are just two examples of the many reasons why your investment could lose value.
- It could be difficult to sell the property when the investment is done, which could cause you to lose money or postpone receiving your money back.
Final Thoughts
Risks are associated with real estate and unlisted stock investments. You could not receive the projected profits on your investment, and your money could be in danger. Such danger increases considerably more if you take out a loan through SmartCrowd to make investments. You still have to pay back your debt even if your investment depreciates or isn’t reimbursed.
Again, getting advice will help you trim the potential investment risks as we mentioned at the start of this Smartcrowd review.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
