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Risk warning

Important Risk Warning

The information provided on InvestForProperty.co.uk, including any guides, articles, videos, emails, downloadable materials and other content, is provided for general information and educational purposes only.

It does not constitute investment, financial, legal, tax, accounting or property advice, a personal recommendation, or an offer, invitation or solicitation to acquire, dispose of or participate in any investment.

Capital is at risk

Property and property-related investments involve risk. The value of an investment and any income generated from it can fall as well as rise, and you may lose some or all of the capital invested.

Returns, income, capital growth, valuations, forecasts and projections are not guaranteed. Any examples or illustrations are provided to explain concepts only and should not be treated as an indication of future performance.

Past performance is not a reliable indicator of future results.

Property may be illiquid

Property and certain property-related investments can be difficult to sell or realise quickly.

There may be no established secondary market and you may be unable to access your capital when you wish to do so. A sale may take longer than expected, incur additional costs or require an asset to be sold at less than its anticipated value.

Any expected investment period, repayment date or exit timetable should not be treated as guaranteed.

Investment structures differ

Exposure to property does not necessarily mean that an investor owns the underlying property directly.

Depending on the investment structure, an investor may instead hold shares, units, loan notes, partnership interests, contractual rights or another form of investment or security.

The rights of investors, their priority in relation to other creditors and their ability to recover capital will depend on the specific legal structure and contractual documentation.

Income is not guaranteed

Rental income, interest payments, distributions or other forms of investment income are not guaranteed.

Income may be affected by factors including:

  • tenant vacancy or arrears;

  • tenant, operator or counterparty failure;

  • changes in market rents;

  • increased operating or maintenance costs;

  • financing costs;

  • regulatory or legislative changes;

  • delays or disputes;

  • changes in demand for the property;

  • wider economic and property-market conditions.

The existence of a contractual obligation to make a payment does not guarantee that the party responsible for making that payment will remain able to do so.

Borrowing can increase risk

Some property investments use borrowing or leverage.

Borrowing can increase potential returns but can also magnify losses. Changes in interest rates, property values, refinancing conditions or lender requirements may have a material effect on an investment.

Where lending is secured against property or other assets, a lender may be entitled to enforce its security if the relevant obligations are not met.

Development and construction risk

Property development investments may involve additional risks including:

  • planning delays or refusal;

  • construction delays;

  • cost overruns;

  • contractor or supplier failure;

  • building defects;

  • changes in material or labour costs;

  • financing difficulties;

  • slower-than-expected sales or lettings;

  • reduced end values.

Completion dates, budgets and projected sale values should not be regarded as guaranteed.

Valuations

Property valuations are opinions of value at a particular point in time.

They do not guarantee the price that could ultimately be achieved on a sale. Actual sale values may differ materially, particularly during periods of market volatility or where a property must be sold within a limited timeframe.

Regulatory, legal and tax considerations

Property ownership and property-related investments may be affected by changes in taxation, planning law, housing regulation, lending regulation, building standards and other legal or regulatory requirements.

Tax treatment depends on individual circumstances and may change over time.

Nothing on InvestForProperty.co.uk should be regarded as tax, legal or regulatory advice.

Specialised property sectors

Some specialist property sectors may involve additional operational, regulatory and counterparty risks.

For example, investments involving supported or specialist housing may depend on matters including local demand, commissioning arrangements, housing-benefit eligibility, lease terms, registered-provider governance, operator performance, care or support arrangements and the suitability of the underlying property.

Public-sector involvement, Housing Benefit or any other form of public funding should not be interpreted as an unconditional government guarantee of investment income or capital.

Diversification

Owning more than one property or property-related investment does not necessarily provide effective diversification.

Different investments may still depend on the same geographic market, tenant, operator, lender, developer, sponsor, funding source, regulatory regime or wider economic conditions.

Investors should consider property exposure in the context of their overall financial position and investment portfolio.

Your personal circumstances

The information on InvestForProperty.co.uk has not been prepared with regard to your individual:

  • investment objectives;

  • financial circumstances;

  • tax position;

  • experience or knowledge;

  • liquidity requirements;

  • attitude to risk; or

  • capacity to withstand financial loss.

An investment that may be appropriate for one person may be unsuitable for another.

Do your own due diligence

Before committing capital to any property or property-related investment, you should carry out your own independent assessment and due diligence.

This should include, where relevant:

  • reviewing the legal and investment documentation;

  • verifying material statements and assumptions;

  • understanding the investment structure;

  • assessing fees and costs;

  • examining the financial position and track record of relevant counterparties;

  • considering the potential downside as well as the expected return;

  • understanding how and when you may be able to exit the investment.

You should obtain independent advice from appropriately qualified professional advisers, including financial, legal, tax, accounting and property advisers where relevant.

No guarantee or recommendation

InvestForProperty.co.uk does not guarantee the accuracy, completeness or future relevance of information published on the website.

Property markets, regulations, tax rules, financing conditions and investment structures may change, and information can become out of date.

You should not rely on InvestForProperty.co.uk, or any guide or other material provided by it, as the sole basis for making an investment decision.

Unless expressly stated otherwise, InvestForProperty.co.uk does not assess whether any particular investment is suitable or appropriate for you.

Regulatory protection

You should not assume that an investment or property opportunity is regulated by the Financial Conduct Authority, protected by the Financial Services Compensation Scheme or eligible for consideration by the Financial Ombudsman Service.

The availability of regulatory protections depends on the nature and structure of the particular investment and the parties involved.

Where a specific investment opportunity is presented, you should check its regulatory status and the protections available before investing.

Final reminder

Understand first. Invest second.

Property investment involves risk. Do not invest money that you cannot afford to lose, and do not commit capital until you understand the asset, structure, counterparties, risks and potential exit.