Any direct investment in property contains risks. Property values can fall as well as rise, and historic performance is not necessarily an accurate guide to future performance.
A fall in the value of your shareholding in a 'Nest Egg' may be due to a number of reasons, such as a fall in the underlying value of property generally.
In the case of a 'Classic Nest Egg', the model also relies on rental income, which is not guaranteed. At point of sale, a 'Nest Egg' property, may take several months before disposal, thus impacting on the date of exit from the syndicate.
Your capital may therefore be at risk and your returns on the initial capital advanced may vary.
To mitigate against these inherent risks, we have pro-actively introduced various strategies and layers of independent scrutiny.
Each 'Nest Egg' has fully independent accountancy and legal representation via Moore Stephens Accountants and Royds Withy King Solicitors. The overall investment and corporate/contractual structures have been drafted by LCN Legal, ensuring the whole scheme is compliant with all regulatory requirements.
Thames Property Nest Eggs Ltd however, is not authorised and regulated by the Financial Conduct Authority and therefore 'Nest Egg' investments are most suitable for 'High Net Worth' or 'Sophisticated' Investors.
Each syndicated 'Nest Egg' investment fund is held in a ring-fenced SPV/Ltd Company…the sole beneficiaries of which are the investors.
The 'Nest Egg' property purchasing criteria almost certainly ensures that from Day One, the investment is in a sound position…so, buying re-possession/pre-auction properties, within the M25, in a 'designated' regeneration area, and with a refurbishment potential... all mitigates against risk. On top of this, because all 'Nest Egg' properties are cash purchases, no 'Nest Egg' investment can fall foul of the fluctuations of future interest rate movements. This lack of 'gearing' is a real 'plus' to the 'Nest Egg' investment model.
Finally, each syndicated 'Nest Egg' fund holds at least 5% of its total value as a contingency 'safety-net', against unforeseen future costs. This of course protects all investors against future requirements to top-up their SPV bank funds.
If you have any doubt about the suitability of 'Nest Egg' investments for your particular circumstances, or you require financial advice, you should seek that advice from an appropriately qualified financial advisor.