1. You could lose all the money you invest
· Investments are in Special Purpose Vehicle (SPV) which own property. Investors can lose some or all of the money they invested, as property prices can go down or property can be damaged and require repairs.
· Advertised rates of return aren’t guaranteed. This is not a savings account. If the SPV encounters issues that incur additional costs, dividends may be reduced or suspended, so you could earn less money than expected.
2. You won’t get your money back quickly
· Investments last for several years, so you should be prepared to wait for your money to be returned even if the SPV you’re investing in repays on time.
· You have the opportunity to sell your investment early through the secondary market but there is no guarantee you will be able to find someone willing to buy.
· You may have to pay exit fees or additional charges to sell your investment early through the secondary market.
3. Don’t put all your eggs in one basket
· Putting all your money into a single platform or type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well. In addition, we also recommend that investors diversify their investment(s) across multiple properties on the platform. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. [https://www.fca.org.uk/investsmart/5-questions-ask-you-invest]
4. The value of your investment can be reduced
· The percentage of the SPV that you own will decrease if the SPV issues more shares. This could mean that the value of your investment reduces, depending on the additional capital required and the performance of the SPV.
5. You are unlikely to be protected if something goes wrong
· Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Read more on the FSCS investment protection checker here.
· Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, the FOS may be able to consider it. Learn more about FOS protection here.
Yielders Ltd. Company Number: 09757611 | FCA Regulated: 745636.