Risks section
CAUTION: Investment in fractional real estate involves several risks.
Risks section
Liquidity risk refers to the ease with which you can resell your securities after subscribing to them. The securities you buy are, in the short term, unlikely to be traded in a secondary market, i.e., in a market for buying and selling existing financial assets (or 'second-hand market'). Therefore, you may not be able to sell them when you want to.
Risk of Capital Loss
There is a risk of capital loss, partial or total, because the return on investment depends on the success of the operation financed. When subscribing to bonds, the risk and return profile is asymmetrical. The higher the profitability, the higher the risk associated with this investment.
Risk of Not Receiving Expected Returns
The risk of not receiving expected returns is present because the income paid to investors depends on the payment of rents by tenants or the performance of the underlying real estate assets. The rents paid to investors are not guaranteed for several reasons: there could be a default in rent payments by some tenants, or the properties held may not be properly rented.
Fiscal Risk
Fiscal risk arises because, before the end of your investment, new tax rules may be imposed on the proceeds of your investment. This can potentially reduce the return on your investment.
Inflation Risk
Inflation risk means that the value of the capital invested and the interest received at maturity may depreciate over the life of your investment. This can potentially reduce its return.