'Have that safety net': Experts weigh in on alternative real estate investment apps

While alternative real estate investing apps offer the real estate exposure many young people want, they also come with their own unique set of risks.

With home prices increasingly out of reach, some Canadians are turning to alternative investing options to get exposure to the residential and commercial real estate sector. 

This phenomenon has given rise to various apps such Willow and addy, which use crowdfunding models to give clients access to commercial real estate that they might not have otherwise tapped into.  

While these apps offer the real estate exposure many young people want, they also come with their own unique set of risks. 

“It is an interesting space,” said Zainab Williams, a financial planner with financial advisory firm Elleverity, in a phone interview. 

“For millennials and Gen Zs who are trying to get into investment properties, but [who] don't have the actual funds to purchase an investment, such as a home or a building, it gives them the ability to split up the risk with others.” 

Willow launched on Jan. 31 as the first regulated real estate investing platform in Canada, and offers a fixed number of 100,000 units each in two Ontario buildings. It received approval from the Ontario Securities Commission to operate as an exempt market dealer and bills itself as an alternative option to traditional real estate investment trusts (REITs).