Risks

Written by Artem
Updated 1 month ago

There are several risks when investing in construction. The probability of these risks occurring is low — Binaryx carefully selects construction companies and projects, and the real estate market in Bali is actively developing. Nevertheless, we believe it is necessary to inform you about potential risks and what Binaryx Platform does to minimize them.

The following risks can be highlighted: the developer may delay or cancel construction, investors may not be able to raise the required amount of investment within the allotted timeframe, and market factors may reduce the value of the property.

Delay or cancellation of construction

We partner with developers who have an excellent reputation in the local market, a large portfolio of completed projects, and no unfinished projects. Each developer is thoroughly checked by our specialists. Clients can also independently learn about the developer on the property page.

Investments not raised in time

In the first phase, investors on Binaryx collect a down payment for the construction company to begin building the property. The first stage usually lasts 30 days. If insufficient funds are raised during this time, all money is returned to investors.

Note that fundraising through Binaryx Platform is one of several fundraising channels for the developer. The construction company raises additional funding from its clients and conducts its own marketing campaigns independently of Binaryx, so that the project is successfully funded even without the platform. Binaryx displays the overall progress and status of funding across all channels.

Negative market factors

There may be a situation in which real estate prices fall between the time of investment and the completion of the project.

To remain flexible in case of an unfavorable change in market conditions, Binaryx develops several exit strategies such as renting out the property or refinancing. The platform's experts continuously monitor the real estate market and economic conditions to identify potential market declines early on.

You can learn more about building investments on Binaryx by visiting our FAQ page.

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