The Property Crowd is proud to provide access to investment properties for everyday Kiwis. We're passionate about improving financial literacy in New Zealand and increasing investment into wealth-creating assets. However it's crucial for you to understand the characteristics of this new marketplace.
Investment properties available on The Property Crowd's platform will range from established, new or yet to be built properties to residential or commercial properties. The risk of investing in these can vary depending on a host of factors. The Property Crowd will endeavour to supply as much information as possible to enable you to make decisions and assist you with your investment opportunities.
Overall, investor returns tend to be greater than the amounts invested, but you might not be one of the winners. Some of the other key risks include:
Illiquidity - There is no guarantee that you will be able to sell your shares when you want to, or at all. We are seeking approval from the Financial Markets Authority to establish a Resale Market where you can sell your shares to another buyer. The success of a sale will depend on such factors as price and other market conditions.
Returns - We will give an indication of expected returns based on rental values. This may be compromised by vacancy rates, repairs and maintenance and again by market conditions.
Dilution - Properties may need more funding to enable a major repair for instance. If the company owning the property issues further shares, your share of the property will reduce unless you put up your proportion of the new investment. That reduction is called dilution.
Lack of control - As a minority shareholder, you will have little influence on how the property is managed. The Property Management Companies will have responsibility for the management of the properties under their care.