Crowdprop does not negate any of the real-world risks involved in owning a property and there are certain property specific risks that exist when owning any property.
Projected income for any investment is based on information from third parties, historical and relevant market data. Projected returns are not guaranteed and may vary based on the following factors:
- Lower rentals could be negotiated on a property
- Rental income could cease completely due to vacancy loss (no tenant in place)
- Tenants could default on their rental payments
- Maintenance and repairs
The above factors all have the ability to increase or decrease your expected return on investment. It is reasonable to expect that from time to time a tenant may not meet their rental obligations or a property may be vacant without a tenant and this may result in returns being lower than expected. It is important to remember that:
- The speculative nature of property investments mean that the market value can fall and rental income is not guaranteed.
- Forecasted returns and historical performance are not an accurate indicator of future performance.
- Downturns in the real estate market and wider economy can negativey impact your property valuation.
The value of your Crowdprop investment can be influenced by the above factors and achieving the rental and capital returns will depend on each individual property investment and the wider economy.
Investors are encouraged to individually asses the risks from the outset and establish their individual risk tolerance before making any investment decisions.