Property Monster does not remove any of the risks that you may experience should you acquire a real estate property directly and outright (i.e. without a mortgage). Some additional risks are introduced by virtue of the fact that you lack control over day-to-day decisions and timing of your exit.
We encourage you to diversify your Property Monster investments across multiple properties to safeguard against excessive exposure to any one property that could incur issues such as tenant default or a problem specific to that property that impacts valuation.
Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.
Any projections of future performance are based on the internal calculations and opinions of Property Monster and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
Property Monster provides rental income estimates based on information from third parties. However, this is not guaranteed and lower rents may be secured. Furthermore, rental income could cease completely for certain periods. For example, if a fire were to occur which was not covered by insurance, Property Monster reserves the right to obtain a loan secured against the underlying property to rectify the damage. This loan will need to be paid down by future rental income.
Should rental income cease completely for certain periods, no dividends will be paid and you may not see any return on your investment until the property is sold.
Any investment you make through the platform will be highly illiquid. There may not be anyone willing to buy your investment that you have advertised to other Property Monster users. In this case, you will be required to wait until the five year exit protection process. However, the timing and ability to exit will depend on completion of a transaction to sell the property.
Loss of Capital
Property prices can go down as well as up and different property types or those in different areas may be more or less susceptible to reduced or negative growth. By investing in property through Property Monster, there is a risk that you may not get back what you put in if property prices fall.
Property Monster reserves the right to dispose of the property and return net proceeds to investors. This right is intended to cover unforeseen scenarios such as the fire example described above. As well as being likely to receive back substantially less than invested, the timing may be unwelcomed and may result in the crystallization of taxable income sooner than anticipated.
Property Monster does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of Property monster on the basis of information provided. Property Monster takes no responsibility for this information or for any recommendations, opinions or predictions.
This list of risk factors does not necessarily outline all possible risks involved. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.