logo
  • login
  • register
Risk Warning

Risk Warning
 

Equity Investments: Risk Warning
Peer to Peer Loans: Risk Warning

1. Equity Investments: Risk Warning

An investment in property and unlisted shares contains risks. You may not get the returns expected and your capital is at risk.

Diversification

Your investment in property and unlisted shares should only be considered as part of a diverse portfolio which contains investments of different kinds and where you do not put too great a proportion of your capital into one particular type of investment.

Dividend risk

Estimated returns are subject to risks around timescales, tenant risk and other costs.

Tenants may not pay their rent or properties may be untenanted for periods and such bad debt or void periods would impact on returns.

Purchases that do not complete, fees or other costs (including refurbishment) may be greater than anticipated all of which would impact on returns.

Capital risk

The market value of property can go down as well as up and the return of your capital would be dependent on a sale of a property which is not guaranteed.

Costs or tenant risk referred to in the section headed ‘dividend risk’ above could impact on capital returns as well as hidden defects or other unexpected costs relating to a property.

Dilution

Any further issue of shares by a company (which may be required for further fundraising) would dilute your investment.

Liquidity

The shares are unquoted, and there is no trading platform or quotation for them. You could sell shares, should you find a willing buyer, but such shares may constitute a minority holding in an unquoted company and as such may hold little value until a Property is sold.

Financial Services Compensation Scheme

There may be an ability to make a claim under the Financial Services Compensation Scheme established by the Financial Services Authority in the event that any investee company fails. Please contact the Financial Ombudsman Service for details.

2. Peer 2 Peer Loans: Risk Warning

A loan, even if secured against a property, contains risks. You may not get the returns expected and your capital is at risk.

Diversification

Any loans made secured against property should only be considered as part of a diverse investment portfolio which contains investments of different kinds and where you do not put too great a proportion of your capital into one particular type of investment.

Capital risk

The market value of property can go down as well as up and the return of your capital may be dependent upon the Borrower selling a property. This can never be guaranteed.

Default

Repayment of loans is not a certainty, and from time to time borrowers may default. THC try to mitigate this risk by having a full due diligence process to assess the project and the borrower before listing the investment on the platform. Unexpected things can happen and the due diligence process does not completely remove the risk inherent in lending. You may not receive all your capital back and the process to repossess and sell a property could alter the time your money is tied in.

Liquidity

A Peer to Peer investment made through this platform is illiquid – there is no ability to transfer the benefit to a third party. Once the loan is made you are committed to it for the period of the loan.

Financial Services Compensation Scheme

Whilst your money is held in a segregated client bank account it will be protected by the Financial Services Compensation Scheme up to £75,000. However, there is no ability to make a claim under the Financial Services Compensation Scheme should the investment fail for any reason.

Awards

It's always nice to be recognised for our achievements. These are some of the awards we have won over the last few years:


To see what our clients think about us go to our testimonials/case studies page

Or to read what the media think go to our press coverage

In respect of Equity Investments, The House Crowd Limited (FRN 711355) is an appointed representative of Prosper Capital LLP (FRN 453007) ("Prosper"). Prosper is authorised and regulated by the Financial Conduct Authority. Neither the House Crowd Limited, Prosper nor any of their affiliates or group companies provides any advice or recommendations in relation to this website. If you have any doubt about the suitability of any investment marketed by The House Crowd Limited, or you require financial advice, you should seek a personal recommendation from an appropriately qualified financial advisor that does give advice.

In respect of Peer to Peer investments, The House Crowd is authorised and regulated by the Financial Conduct Authority under interim permission number 665205 to conduct peer to peer lending activity in the UK.

Investments are only available to certain specified persons who are sufficiently sophisticated to understand the risks. Investments in property and unlisted shares carry risk and you may not receive the anticipated returns and your capital may be at risk.