The Risks of Investing in Property
Property investment carries risks, many of which are in common with all types of investment. While MoneyCrowd will always endeavour to ameliorate these risks we can not eliminate them entirely. We recommend that your investments should be diversified against multiple properties. The helps limit exposure to any issues that could occur with a single property.
Some key property investment risks include the following.
The value of your investment may decline
The value of any investment can go down as well as up and historic performance is not a guide to future performance. A fall in the value of your investment may be due to a number of reasons, such as a fall in the underlying value of the property or a problem with the property that will need to be funded from future rental income.
Liquidity
You can, at any time, sell your share to another party. MoneyCrowd will also endeavour to buy your shares back if the funds permit it. This may not always be possible at short notice and you may be unable achieve fair value for your share at short notice.
Variable Income
Whilst we always aim for a high yielding gross rental income based on all information available at time of purchase the returns are not always guaranteed. Also, if the property was damaged in such a way that it was not covered by insurance or were there was a prolonged repair period then the returns would be negatively affected.
Disposal/unexpected exit
We reserve the right to dispose of the property and return net proceeds to investors. This right is intended to cover unforeseen circumstances. The possibility exists of receiving back less than invested. Also the timing may be occur at a non tax friendly time in your personal financial year.