This is a risk warning from Realtybundles CFP Ltd., a company incorporated under the laws of England and Wales under company number 10762180 having offices at: 27 Old Gloucester Street, London, United Kingdom, WC1N 3AX (“RealtyBundles”, “We”, “we”, “us”, and “our”, as applicable); to all users of the website www.realtybundles.eu (the “Website”), that intend to make an investment in real property via the website.
Investment in real estate can be an extremely rewarding investment. However, like all investments, it is a risky venture.
Before making an investment via our Website, you must carefully consider your financial resources, all risks involved, and invest only if you fully agree to and understand the terms and conditions of the Investment Agreement accessible via (the “Investment Agreement”); and the terms and conditions of the Website accessible via (the “Terms”), and any other information referenced therein. RealtyBundles is not providing any investment advice, so please take independent professional advice before taking any decision to invest. We require you to pass aproprientness test on our Website in order to make sure that you have sufficient knowledge and and fully understand key risks related to your investment decision.
As with most investment decisions there are risks involved. This section outlines some of these risks. Please read these risks carefully as it is important that you understand the types of risks associated with investment activity.
1. Risk of loosing your money
The investment via our Website is property investment. The value of your investment may go down as well as up and, therefore, your capital is at risk. By investing in property bundles via our Website, there is a risk that you may not get back what you invested if property prices fall. You may lose all your invested capital and you will need to ensure that you are able to afford this loss. You should consider this risk and not invest more money than you can afford to loose.
2. Property values may decline
Real estate property values may go up or down and there are various reasons why the value of a property may decrease. Past performance of a property is not a reliable indicator of future valuations or income streams. Any future downturn in the real estate market generally or changes to local environmental circumstances such as weather conditions, natural disaster, planning permission decisions, or local demand, etc. could have an adverse effect on the value of any investment you make, meaning that you may receive lower returns than you expected or potentially no returns at all. You should make sure you have considered this risk from the outset.
3. Asset & investment values may decline
Asset and investment values may go up or down and there are various reasons why the value of an asset or investment may decrease. Past performance of an asset or investment is not a reliable indicator of future valuations or income streams. Any future downturn in the market generally or changes to the fundamental condition or impairment of an asset or investment specifically such as relative value, performance, the acts or omissions of management, geo-political impacts, etc. could have an adverse effect on the value of any investment you make, meaning that you may receive lower returns than you expected or potentially no returns at all. You should make sure you have considered this risk from the outset.
4. Variation of Investment Structure
The structure of investments will remain as per the Terms and the Investment Agreement. In accordance with the Terms and the Investment Agreement, we reserve the right to make variations to the investment structure, which can affect your rights, as further detailed therein.
Any investment in shares of a special purpose vehicle you make through the Website will be illiquid. Once you have committed your money it could be difficult for you to exit your investment and get your money back at a time that suits you. This means that you are unlikely to be able to sell your shares until and unless:
- a new investor buys your shares through our Website;
- the special purpose vehicle in which you invested via the Website through the purchase of its shares (in each case the “SPV”) has enough money and agrees to buy your shares back upon the fulfillment of any conditions and terms detailed in the Investment Agreement; or
- SPV sold one of the property in bundle and agrees to buy your shares back upon the fulfillment of any conditions and terms detailed in the Investment Agreement.
The securities you purchase through the Website in the SPV are not listed on any exchange and there is no obvious secondary market on which you could sell your shares. As a result you may not be able to get your capital back early if your circumstances change. You should carefully consider whether the terms of the investment described in Terms and the Investment Agreement is acceptable for you in light of this.
6. No Dividends
Investors may recieve no dividents under current investment terms and conditions.
The special purpose vehicles into which you will invest through the Website are mainly newly formed entities set-up specifically for the purpose of investing in the property bundle concerned. They therefore do not have a long-term track record that you can review. Investing in unlisted shares should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in different SPVs that own different property bundles rather than a lot in one SPV.
8. Tax issues
Investors will be responsible for the payment of their own tax which may include capital gains and/or income tax. CFP does not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position. It is still your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will effect your tax status you must seek professional advice before you invest. Each special purpose vehicle you invest in will be liable for, and pay, corporation tax and any returns you receive will be paid to you net of any corporation tax due. Please note that the corporation tax may be subject to change.
9. No Financial Advice
We do not give any financial or investment advice or provide analysis or recommendations regarding investment opportunities promoted via our Website. Investments can only be made by registered users of the Website on the basis of information provided during the registration process. CFP take no responsibility for this information or for any recommendations, opinions or predictions.
We will provide you with factual real estate market information as well as information about how the transaction will work and the potential risks involved. We are not able to confirm whether an investment is suitable for you and your circumstances. If you have any concerns about this, we recommend that you seek advice from a independent financial adviser.
10. Projections of Returns
Any projections of returns are based on the internal calculations and opinions of the applicable SPV, and are subject to change at any time. Any projections are not a reliable indicator of future results and should not be relied on.
11. Absence of Financial Services Compensation Scheme (FSCS) cover
Your investment is not covered by the UK’s FSCS arrangements, nor any other statutory or voluntary compensation scheme.
12. Client Categorisation Procedure
Before making any investment, investors will need to go through our client categorisation procedure, which is a reflection of applicable rules and regualtions. Investors will need to provide the relevant information to CFP, which you warrant to be truthful and accurate, in order that we can categorise you. If you no longer fall into at least one of the categories of investors available, you will give immediate written notice to CFP and you will not access, or try to access the service unless and until you fall into one or more of these categories again.
The information and services provided on the Website are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where CFP is not authorised to provide such information or services. Some services or investment products described on the Website may not be available in all jurisdictions or to all clients. This list of risk factors does not necessarily outline all possible risks involved.
Before making any decision to invest, investors should read the Investment Agreement and the Terms available on the website in their entirety and consult with his/her own financial advisers. If you are unsure about any aspect of the information available on the Website, you should seek advice from an independent financial adviser.
By making an investment on our Website, you acknowledge that you are making a long term investment. You will not have control over the day-to-day decisions made in relation to a particular investment or the timing of your exit.
15. Unexpected disposal
We reserve the right in certain circumstances to sell the underlying investment in which you have made an investment and return net proceeds to all investors.
We will give you notice in the event that such circumstances arise. However, this may happen at a time which you do not consider ideal and you may receive back much less than you initially invested. Any taxable income may also crystallise sooner than expected.
16. Adverse changes to exchange rates
The functional currency of your investment will be EURO. You should consider the risk of losses that may arise from currency fluctuations between this and your own functional currency throughout the duration of your investment.
Very specific provisions are required where an investment is purported to be guaranteed. This includes clear details of the giver of the guarantee, what conditions are attached, such as duration, amount, etc. and what circumstances the guarantor may not be able to honour the guarantee.