Propnology does not provide advice to investors. We simply provide a marketplace, which offers opportunities for investment. Any decision to invest will purely be at the discretion of the individual investor.
Investors who choose to invest should regularly review their portfolio, or seek professional advice, to ensure that the underlying assets remain in line with their investment objectives. This can be particularly important for those investing towards the end of a defined time horizon – for example, those investing for retirement.
Investing in a crowdfunded property investment does not insulate you from any of the risks associated with traditional property investment. We strongly encourage you to read all the relevant documentation, to gain an understanding of the associated risks relating to specific investments, before deciding whether or not to invest.
What are the key risks?
1) Loss of Capital
Property prices can go down as well as up and past performance is not a guide to future capital growth or rates of returns.
You should be aware that certain property classes or geographical locations may be more or less susceptible to reduced or negative growth. You should also remember that when your investment is sold, you may get back less than you invested.
You should only invest as much as you can afford to loose and as part of a diversified portfolio.
2) Income
Rental income is paid out to investors in the form of a dividend.
These payments are not guaranteed, and may be suspended or reduced in the event that the property does not generate sufficient rental income to cover the costs and expenses of operating the property.
Rental income can fluctuate as a result of market conditions and can also be affected by factors including void periods, maintenance or repairs.
3) Liquidity
Unlike a bank or building society account, where capital is guaranteed, the value of an investment can fall as well as rise and investors may not get back the amount invested.
The property market can be illiquid; consequently, there can be times when investors in property will be unable to sell their investments.
Whilst we provide a Share Marketplace, to resell your shares, we cannot guarantee that you will be successful in finding a buyer and you may need to retain your shares for the full term of the investment.
4) Diversification
Diversification, by spreading your money across multiple crowdfunded property investments, will reduce risk. Investing in property should only be done as part of a diversified portfolio.
5) International Investors
A person wishing to invest from outside of the UK may be restricted in certain jurisdictions by law. It is the responsibility of the investor to confirm they are not subject to any local laws or restrictions on their use of this crowdfunding platform.
The value of your investment may be affected by currency fluctuations, changes in the rates of exchange, and may have an adverse affect on the value of your investment or the income generated.