Overseas real estate funds are considered safe, but there is a risk of principal loss. This is because they are operated with a leverage structure, and the lending institution may foreclose on the property if senior debt matures. Also, due to 'cash trap', rental income may not be returned to investors, and early redemption restrictions make it difficult to recover investment funds before maturity. If the fund term is extended, the risk of tenant eviction and vacancy increases, increasing the possibility of principal loss. Therefore, investors should carefully consider whether it meets their investment propensity and goals.
