The following risk warning refers specifically to the investing in property for let. An investment in property and unlisted shares contains risks. You may not get the returns expected and your capital is at risk.
Diversification: Any investments into property should only be considered as part of a diverse investment portfolio which contains investments of different kinds and where you do not put too great a proportion of your capital into one particular type of investment.
Dividend risk: Estimated returns are subject to risks around timescales, tenant risk and other costs. Tenants may not pay their rent or properties may be untenanted for periods and such bad debt or void periods would impact on returns. Purchases that do not complete, fees or other costs (including refurbishment) may be greater than anticipated all of which would impact on returns.
Capital risk: The market value of property can go down as well as up and the return of your capital would be dependent on a sale of a property which is not guaranteed. Costs or tenant risk referred to in the section headed ‘dividend risk’ above could impact on capital returns as well as hidden defects or other unexpected costs relating to a property.
Default: Dividends are not a certainty, and from time to time renters may default. Crowd Share Club tries to mitigate this risk by having a full due diligence process to assess the project and the performance of the rental property before listing the investment on the platform. Unexpected things can happen and the due diligence process does not completely remove the risk inherent in investing. You may not receive all your capital back and the process to repossess and sell a property could alter the time your money is tied in.
Dilution: Any further issue of shares by a company (which may be required for further fundraising) would dilute your investment.