Risks
Risk Disclosure
The user acknowledges full awareness of the risks associated with investing in real estate usufruct rights, including but not limited to the following:
Risks of Investing in Real Estate Usufruct Rights
- Expiration of Usufruct Right: The real estate benefit may terminate upon expiration of the specified period or termination of the contract for any contractual or regulatory reason.
- Return Volatility: Investment returns are not guaranteed to be stable, and the value of real estate shares or expected returns may decrease due to market changes or demand.
- Operational and Management Risks: The property may be exposed to impacts resulting from mismanagement or negligence by the asset owner, benefit owner, or the entity managing the property.
- Tenant Default: There is a possibility of tenants delaying or defaulting on rent payments, negatively affecting the investor's cash flows.
- Invalidation or Termination of Benefit: The right to usufruct may be canceled or terminated due to an emergency such as cancellation of the underlying agreement or a legal defect.
- Maintenance Costs: There is a possibility of increased maintenance costs or unexpected expenses affecting the net return.
- Regulatory or Judicial Restrictions: The property may be subject to restrictions such as judicial or administrative decisions that prevent disposal or hinder the use of it.
- Changes in Regulations or Fees: Regulatory amendments or the imposition of new taxes and penalties may affect the property or the feasibility of investing in it.
- Property Expropriation for Public Benefit: In some cases, the property may be expropriated or usufruct rights withdrawn by the competent authorities for public purposes, which may result in partial or total loss of investment, despite potential statutory compensation.