Is Fundrise Available In Canada?
Unfortunately, Fundrise is not available for Canadians or international residents. That's because they only allow U.S citizens or U.S permanent residents to open an account. You can verify this information yourself on Fundrise's FAQ page.
While Fundrise is not in Canada, you'll be happy to know there are many alternatives that do the same thing for the Canadian real estate market. Some of the top Fundrise alternatives are Willow and Addy Invest. You can learn more below.
Top 3 Fundrise Alternatives
When Is Fundrise Coming To Canada?
Right now, Fundrise is not coming to Canada and has no plans of expanding outside the USA. The company has not made any hints or official statements about coming to Canada or other countries.
What Is Fundrise?
Fundrise is an online real estate company that makes it possible for anyone to invest in real estate, with as little as $10. It uses crowdfunding, where many people can pool their money together to buy a property. Fundrise will buy private real estate deals like commercial or residential buildings, manage the property, and share the profits with the investors.
Why Do People Invest In Fundrise?
People enjoy Fundrise because they make it possible to invest in real estate without a lot of money or experience, by pooling money with other investors to buy properties. This means that people can invest in real estate without needing to buy a whole property, which can be expensive.
Additionally, some commentors on Reddit say they use Fundrise to diversify their portfolio, not as a sole investment opportunity. And only after they've maxed out their tax-advantaged accounts like a ROTH IRA.
What To Look Out For
While Fundrise offers an easy way to invest in real estate, it's important to be aware of potential risks and to do your research so you understand all of the numbers.
Can You Actually Make Money With Fundrise?
According to its website, Fundrise has a good historical performance, with an average annualized return of 8.7% over the past 5 years. So it is possible to make money with Fundrise, but that doesn't mean it's risk-free. Past performance is not a guarantee of future returns.
Another thing to consider is the ability to cash out. Fundrise is a long-term investment, and it's not easy to sell your shares if you need to access your money quickly. While Fundrise allows investors to sell their shares, there may be additional fees involved and it can take time to process the sale.
Best Fundrise Alternatives for Canadians
If you want to explore Fundrise alternatives in Canada, you'll find plenty of options. What makes a good Fundrise alternative? It should offer a user-friendly experience, low minimum investment, and a variety of real estate projects to choose from. Other important factors include fees, transparency, dividend payments, withdrawals, and historical performance.
Fundscraper is a licensed real estate investment platform that allows Canadian investors to invest in a variety of real estate projects across North America. With over 9,500 members and $500M+ of capital deployed, Fundscraper claims to select reputable properties across various real estate asset classes such as single-family, multi-family, retail, office, industrial, and hospitality.
Investors can create a profile on Fundscraper for free and browse through a range of projects. The minimum investment is $5,000, which is high compared to just a $10 minimum on Fundrise. In addition, investment time horizons range from 6 months to 5 years without the ability to withdraw. However, some projects allow for early redemption with penalties.
Investors receive dividends monthly, quarterly, or annually, depending on the project, and can be deposited straight into their bank account. Fundscraper claims that the average project yield is 7-12% and the average investor earned a net return of 10.87% in 2020.
2. Addy Invest
Founded in 2018, Addy provides an investment platform where you can choose specific properties to invest in with as little as $1. Each property is listed on their website with comprehensive details, allowing you to read about the deal and invest if you like the numbers.
They claim to not charge any transaction fees, withdrawal fees, or more, and have a $50/year membership for additional benefits. They offer two types of investment returns: appreciation and distributions.
It's important to keep in mind that some properties only pay appreciation, meaning your investment will be illiquid for many years until the property is sold. Other drawbacks include that there is a $2,500 cap per property, and I was not able to find their historical data and returns. However, Addy Invest might be a great Fundrise alternative to consider since it lets you invest with as little $1, takes 5 minutes to sign up, and has minimal fees.
0.50% management fee
$4.99 per transaction
Unlike most other Fundrise alternatives, Willow allows you to sell your investment whenever you want. It uses something called PropSharing, which splits properties into 100,000 units and offers them for sale on the platform, allowing investors to buy and sell property ownership as easily as shares on the stock market.
Willow primarily focuses on income-producing residential, office, retail, and industrial properties. The properties you purchase can earn both rental income and appreciation if the property is sold. Then your profits are distributed monthly, and you can choose to invest in specific properties that suit your goals.
When it comes to fees, there is a 0.50% management fee and $4.99 fee per transaction. For each new property on the platform, there is also a 1% one-time property acquisition fee. Willow is regulated by the Ontario Securities Commission and registered in every province and territory in Canada.
Other Fundrise Canada Alternatives
While the platforms above are the best and most popular choices, there are still several other Fundrise alternatives if you want to continue your research:
How To Choose The Best Fundrise Alternative
When choosing a real estate crowdfunding platform, there are many factors to consider like fees, liquidity, properties available, and more. Here are some things to look for to find the best platform for your needs.
Crowdfunding vs. REITs
REITs, or real estate investment trusts, are publicly traded on stock exchanges and can be bought and sold like any other stock. They offer the benefit of liquidity and may have lower investment minimums than crowdfunded real estate platforms.
However, platforms like Fundrise offer an easy user interface and the ability to invest in specific projects that you can monitor over time, which might be harder to do if you're investing in REITs.
Ultimately, the decision to invest in REITs or real estate crowdfunding platform will depend on your individual financial goals, risk tolerance, and investment strategy. It's important to do your own research and carefully consider the pros and cons of each option before making a decision.
Fundrise Canada FAQ
Can Non-US Citizens Invest In Fundrise?
No, non-US citizens cannot invest in Fundrise or open an account. Fundrise is only available to US citizens or US residents according to their official website.
How Quickly Can You Withdraw From Fundrise?
To withdraw funds from Fundrise, you must submit a liquidation request which is reviewed every quarter (which is 3 months). So it can take a while to withdraw your funds as it's meant to be a long term investment.
How Much Capital Is Required To Get Started With Fundrise?
Fundrise has a very low barrier to entry. It only requires $10 to get started.
Will I Need To Pay Taxes On The Money That I Make?
Yes, Fundrise says, "you are required to include any reported income in your tax return even if your dividends were reinvested."