Investing in property and companies can be very rewarding, but it involves the following key risks:
1. Loss of Capital
Property prices can go down as well as up and different property types or those in different areas may be more or less susceptible to reduced or negative growth. By investing in property through Property Moose, there is a risk that you may not get back what you put in if property prices fall. You should not invest more money through the platform than you can afford to lose without altering your standard of living. Investment on Property Moose is not covered by the Financial Services Compensation Scheme.
2. Illiquidity
Any investment you make through the platform will be highly illiquid. This means that you are unlikely to be able to sell your shares until and unless the investee company is sold or the property is sold at the end of the investment term.
3. Rarity of Dividends
If a property receives rent this will be paid to the investors as a dividend net of any fees, costs and expenses. However, should a property not produce rent, or the rent be insufficient to cover the costs and expenses of operating the property, no dividends will be paid and you will be unlikely to see any return on your investment until the property is sold.
4. Diversification
Investing in property and unlisted shares should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple businesses rather than a lot in one or two businesses. It also means that you should invest only a small proportion of your investable capital in startups as an asset class, with the majority of your investable capital invested in safer, more liquid assets.
5. Tax
You will be responsible for the payment of your own tax which may include capital gains and/or income tax. We do not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position. It is still your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will effect your tax status you must seek professional advice before you invest. Each company you invest in will be liable for, and pay, corporation tax and any returns you receive will be paid to you net of any corporation tax due.
6. Past Performance
The value of property may go down as well as up and you may not get back the full amount you invested. You should not consider investing unless you can afford a total loss of your investment. Past performance is not a reliable indicator of future results.
7. Future performance
Any projections of future performance are based on the internal calculations and opinions of Property Moose and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
Paul, Middlesex
Hugh Hutchison, Paris
Alan Smith, Durham