Before you invest, understand what could reduce your income, affect your capital or delay getting your money out. Property investments take time to sell, so consider when you may need the money and read the exit terms for each property.
These risks can affect how much you earn and when you can exit. Read them alongside the terms for the property you’re considering.
Shard does not currently offer an option to cash out your investment on request. You should be prepared to hold your stake until the property is sold under its investment terms. The planned holding period can run for years, and a sale may take longer than expected.
A resale market is planned but is not currently available. Do not rely on it when deciding whether to invest.
Resale market not yet availableAn estimated return depends on assumptions about rent, costs and a future sale price. Weaker demand, higher interest rates, damage or delayed infrastructure can reduce the property’s value. You could lose some or all of the money you invest.
Capital is at riskYour rental payments come from rent collected, after the property’s expenses and any amounts set aside under its terms. Empty units, unpaid rent, repairs, management fees and taxes can leave less to distribute, or nothing at all. Check which costs apply and whether the forecast allows for periods without a tenant.
Rental payments are not guaranteedTitle documents establish the rights held over a property. Missing documents, competing ownership claims or an undisclosed mortgage can lead to disputes and legal costs. The checks needed depend on the property’s location and the type of title. Reviewing the documents can identify problems, but cannot rule out every later claim.
Review the title evidenceShard uses a separate company for each property. Your investment gives you an interest through that company, with rights set out in the investment documents. The company can still face debts, disputes and losses. This arrangement does not guarantee that your money is protected.
If Shard or a service provider stops operating, records may need to be recovered and a replacement appointed before payments or a sale can proceed. This can take time and cost money. Where an organisation holds shares on your behalf (a nominee), check who keeps the official register and how your entitlement is recorded.
Separate ownership does not remove riskLiquidity means how easily you can turn an investment into cash. Shard does not currently offer a resale market or cash out on request. Plan to hold your investment until the property is sold under its terms. Receiving rent does not mean you can withdraw the money you invested.
Read the planned holding period and the rules for selling the property. Finding a buyer, agreeing a price and completing the legal work can take longer than expected, even when rent is being collected.
Keep money for emergencies, school fees and near-term business expenses somewhere you can access it when needed. Do not depend on a property sale to meet a fixed payment date.
Review the evidence of ownership, the seller’s right to sell, the valuation and the property’s condition. Check for mortgages, disputes or restrictions that could affect its use or sale. The documents should explain who carried out each review and any unresolved issues.
Ask for clarification when evidence is missing or unclear. A completed review does not guarantee income, a sale price or protection from loss.
You must complete the identity and other compliance checks required for your investment. These checks help prevent misuse of the platform. They do not establish the property’s value or guarantee your return.
Separately, read how your ownership is recorded. A nominee is an organisation that holds shares on your behalf. If your offer uses one, its name may appear on the official shareholder register, with a separate record of your entitlement.
Consider both the amount you could afford to lose and how long you could manage without it. A higher estimated return does not make up for being unable to pay an essential expense when it falls due.
This page explains general risks, not personal investment, legal or tax advice. Read the property’s investment documents and seek independent advice where you need it.