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Fundrise Canada Review
Find out if the online real estate investment platform Fundrise will come to Canada and learn about some alternatives you can use while you wait.
Fundrise is a popular US-based real estate investment platform that lets you pool your money with other investors to help develop commercial properties and residential homes. Unfortunately, this platform isn’t currently available in Canada – which has left many Canadians wondering when it will make its way across the border.
While it was slated to arrive back in 2015, Fundrise has still not released the date that it’s meant to move over to Canada (if ever). That said, there are some suitable alternatives that you can check out while you’re waiting for Fundrise to come onto the scene.
What is Fundrise?
Fundrise is a US-based real estate platform that lets US residents invest in commercial and residential real estate. It’s unique in that it lets average investors buy into newly developed properties by pooling their assets. From there, that money gets invested into various real estate investment trusts (also known as REITs).
What are REITs?
Fundrise invests your money into REITs, which are a type of mutual fund used to purchase or renovate various forms of real estate. You’ll then make money on the earnings that come from the properties you invest in. This money comes from revenue such as interest payments, rental income and the appreciation of properties when they get sold.
Is Fundrise available in Canada?
Fundrise is not currently available in Canada, though there is a high level of interest in the platform. This is unfortunate given that there are very few real estate crowdfunding sites that are legally allowed to operate in the country.
When will Fundrise come to Canada?
Fundrise doesn’t have any publicly-announced plans to come to Canada, though there was speculation that it would move its services over back in 2015. That said, there are a few suitable alternatives to its services that you can explore below.
What are some alternatives to Fundrise Canada?
There are a couple of alternatives to Fundrise Canada that you can consider, depending on how you want to invest your money.
NexusCrowd operates a similar business model to Fundrise and is probably the most similar platform. One of its main benefits is that it only takes on projects that are already 50% capitalized by developers. This means there’s less risk involved when you invest with NexusCrowd than there might be with some of its competitors.
Any money you invest will be used to help developers raise the capital they need to build or renovate their properties. Just be aware that the minimum investment is $10,000 and there’s no guarantee that you’ll net a return if the property or company performs poorly
- Regulated investment platform.
- Risk is shared among investors.
- Projects are 50% financed before investment.
- Investments are refunded if funding objectives aren’t met.
- Investment minimums of $10,000.
- More risky investment than trading equities or ETFs.
RealStarter is another option if you’re interested in investing in real estate. It acts as a bridge between investors and developers to help projects get the funding they need to get off the ground. Once you put money in, all of your investments are listed in an online dashboard so that you can track the progress and payout for each project.
This platform lets you invest a maximum of $1,500 per project, which is a low amount compared to sites like NexusCrowd (which requires a $10,000 minimum). Just be aware that RealStarter isn’t regulated in Canada and any money you invest in its projects won’t be guaranteed. The site is also only available to residents of certain provinces.
- Online investment dashboard to track your returns.
- Low investment amounts bring down the level of risk.
- Terms are short and usually last between 12 and 36 months.
- You’ll net high returns if the project performs well.
- Only available in Quebec, Nova Scotia, BC and New Brunswick.
- Investments limited to $1,500 per project.
- Very limited regulation.
- More risky investment than trading equities or ETFs.
Can I invest in REITs as an alternative to Fundrise Canada?
REITs (or real estate investment trusts) represent a viable alternative to investing in a crowdsourced company. REITs can be purchased individually or as an exchange traded fund (which is basically a mutual fund that can be traded on the stock exchange).
REITs pay out almost all of their taxable income to shareholders, which makes them an attractive option for investors that want high returns. You may be able to purchase these investments with a trading platform such as Wealthsimple Trade, Questrade or QTrade.
Fundrise is a popular US-based app that will hopefully make its way to Canada soon. That said, there are a couple of other options you can explore if you’re intent on investing in real estate in Canada. Find out more about Canadian alternatives to Fundrise and sign up today to get started.
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