What Are PYs?
Definition of PYs: Prop Yields (PYs) are symbolic units linked to the rental income generated by properties managed by Propvance. PYs offer individuals the opportunity to contribute to real estate projects and receive voluntary gifts based on the performance of the associated properties. Importantly, PYs do not represent ownership of real estate or other physical assets.
How PYs Work:
- Participants can acquire PYs as a symbolic contribution to a property’s rental income potential.
- Rental income, after deducting operational costs, is used to calculate potential discretionary gifts.
- Gifts are distributed periodically but are not guaranteed and depend on financial performance.
Declining Value and Expiry Timeline:
- PYs have a lifespan of 20 years.
- From year 6 onward, PYs decline in value on a predetermined schedule.
- After 20 years, PYs expire, and no further benefits or gifts are distributed.
Key Benefits of PYs:
- Hassle-free participation in real estate projects without ownership responsibilities.
- Transparent financial reporting to keep participants informed.
- Flexibility to receive voluntary gifts or reinvest in new opportunities.
Disclaimer for PYs
- No Ownership Rights:
- PYs do not grant ownership of any property, equity, or other tangible or intangible assets managed by Propvance.
- PY holders have no voting rights, management input, or decision-making authority regarding properties.
- Voluntary Nature of Gifts:
- Gifts associated with PYs are voluntary and entirely at the discretion of Propvance.
- Gifts are subject to the financial performance of the associated property and may fluctuate or cease altogether.
- Not a Financial Product:
- PYs are not investment products, securities, or financial instruments under regulatory oversight.
- Propvance is not licensed by any financial regulatory authority, including the Dutch Financial Markets Authority (AFM).
- Risk Factors:
- Operational Risks: Vacancies, maintenance issues, or unexpected costs can impact rental income.
- Market Risks: Changes in property values, economic conditions, or rental demand may affect gift distributions.
- No Control or Influence: PY holders cannot influence property management or operational decisions.
- Fiscal Obligations:
- Gifts received through PYs may be subject to taxation under local laws.
- It is the participant’s responsibility to consult a tax advisor for guidance on reporting and obligations.
Legal and Financial Protections
Disclaimer of Liability:
- Propvance is not liable for losses, reduced gifts, or other impacts resulting from market conditions, operational challenges, or external factors.
- Participation in PYs is at the sole risk of the participant.
Terms and Conditions Updates:
- Propvance reserves the right to amend the terms and conditions governing PYs to comply with legal or operational requirements.
- Changes will be communicated through official channels.
Refund Policy:
- PY contributions are non-refundable. However, under certain conditions, a discretionary refund equivalent to 50% of the initial contribution may be processed after a minimum holding period of five years.
Transparency and Reporting
- Participants receive regular updates detailing the financial performance of properties linked to their PYs.
- Reports include rental income, operational costs, and gift calculations, supported by invoices and transparent documentation.
Understanding Risks and Responsibilities
Participation in PYs involves accepting the following:
- Gifts are not guaranteed and depend on financial performance.
- The value of PYs declines over time and ultimately expires.
- Legal and tax compliance is the responsibility of the participant.
By participating in Prop Yields, you acknowledge and agree to the terms outlined in this document. For further clarification, please contact our support team at [email protected].