Crowdfunded real estate investments carry attendant fees, including online-platform charge fees, to cover administrative and operating costs. These are reasonable amounts that pay for running the digital marketplace, conducting due-diligence efforts, reporting and documenting transactions, and facilitating investment distributions.
Charges to investors are sometimes called acquisition fees; that is, the fee charged for staking a claim on the investment opportunity, and for technically owning a piece of the property. These are equivalent to a certain percentage of the investment.
Apart from exacting acquisition fees, there are sites that required investors to pay annual fees for being part of the “exclusive crowd”. There may also be variable charges on closed deals. All these depend on the online platforms’ policy.
However, it is not unusual to charge the project operators instead, to free the accredited investors from expenses on top of their placements. Terms vary in this regard: While some seek one-time fees, others impose monthly fees.
In all cases, especially in Western settings, government-bound payments (like stamp duties and income taxes) apply.
With the HBR portal, however, investors are not charged any fees. The responsibility is placed on the project operators in order to increase the profitability of the investors’ participation in crowdfunding for UAE real estate. Additionally, HBR investors do not pay any government taxes because the UAE does not impose income taxes, withholding taxes, sales taxes, and/or other duties.