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 is not regulated by the Financial Conduct Authority, and is not required to as it does not provide financial advice, and makes no decisions on behalf of investors. Thames Property Nest Eggs Ltd is a service provision only, providing administrative, coordination and management services to groups of investors, who come together to invest in property. Thames Property Nest Eggs Ltd therefore acts only under the instructions of each syndicate of investors, and has no voting rights, executive powers or beneficial interests in any syndicate ‘Nest Egg’ investment.
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, investments are in a sound position. In addition, because all refurbishment 'Nest Egg' properties are cash purchases, no 'Nest Egg’ investment of this sort 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.
With 'Off-Plan Nest Eggs', if the property is not sold prior to completion, then the investor group will need to complete on the purchase. This will of course enable the ‘Nest Egg’ group to then rent out the property, thus generating an annual income/dividend prior to an eventual sale.
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.