The following are the key risks involved in investing in property:
Property prices can go down as well as up and different property types or those in different areas may be more or less susceptible to reduced or negative growth. There is a risk that you may not get back what you put in if property prices fall. You should not invest more money through the Crowdfolio platform than you can afford to lose without altering your standard of living.
Any investment you make through the platform will be highly illiquid. There is no market for these shares, and you must be prepared to hold the investment for the full term.
If a property receives rent this will be paid to the investors as a dividend net of any fees, costs and expenses. However, there may be times when the property is untenanted, and no rent is collected or when the costs of maintaining the property are higher than expected.
The property market can change, it may be difficult to sell the property at the targeted exit date and you may need to hold the investment for longer than the expected term.
Investing in property and unlisted shares should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple businesses rather than a lot in one or two businesses. It also means that you should invest only a small proportion of your investable capital in start-ups as an asset class, with the majority of your investable capital invested in safer, more liquid assets.
You will be responsible for the payment of your own tax which may include capital gains and/or income tax. We do not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position.
Crowdfolio does not give investment advice or provide analysis or recommendations regarding investment opportunities. We recommend that you seek independent financial advice before making any investments.
Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.
Any projections of future performance are based on the internal calculations and opinions of Crowdfolio and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
Your investment in shares is not covered by the Financial Services Compensation Scheme.
