What are the risks involved?

What are the risks of investing in a property crowdfunding operation?

Investing in securities issued by unlisted companies involves specific risks

Illiquidity risk: illiquidity is the ease with which you can resell your securities after subscribing to them. The securities you buy on Raizers are, in the short term, unlikely to be traded on a secondary market, i.e. on a market for buying and selling existing financial assets (or "second-hand market"). You may not be able to sell them when you want to.

A risk of capital loss, partial or total, as 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 return, the higher the risk associated with the investment.

A tax risk: before the end of your investment, new tax rules may be imposed on the income received from your investment. This can potentially reduce the return on your investment.

Inflation risk: the value of the capital invested through bond subscriptions and interest received at maturity may depreciate over the lifetime of your investment. This can potentially reduce its return.

Note that the four risks presented above are not exhaustive, and are mentioned for information purposes only.

All the projects presented on the Raizers platform have been previously analysed and validated by our analysts. In all cases, Raizers advises you to diversify your investments and to favour the investment of sums that you will not need in the future.

Related articles

- How are operations selected?
- What is performance or profitability?
- What is illiquidity risk?

Updated on: 05/04/2022