An investment through Brickowner does not remove any of the risks to which you may be exposed if you bought a property directly without a mortgage. Key risks are as follows:
The value of your investment may fall
The value of your Brickowner investment can go down as well as up and past performance is a not a guide to future performance. A decline in the value of your investment may occur for a number of reasons, such as a fall in the underlying value of the property or a problem with the property that will require funding from future income. You may not get back the full amount invested and consequently may lose some or all of the funds invested. You should not consider investing unless you can afford a total loss of your investment.
The Financial Services Compensation Scheme does not cover poor investment performance, but in the event of our default or the default of Gallium you may be entitled to compensation (up to a maximum of £85,000) from the Financial Services Compensation Scheme. Further information is available from the Financial Services Compensation Scheme at www.fscs.org.uk
Projections and forecasts cannot be relied upon
Any projections of future performance are based on the internal calculations and opinions of Brickowner and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
Brickowner relies upon third party providers to supply up to date information, reports and valuations, and is not liable for information sourced from such third parties. Different third party providers may employ different valuation and reporting methods, and may value the underlying assets at different intervals, which may create valuation discrepancies.
Liquidity of your investment
Although you can advertise your investment for sale to other Brickowner users at any time, there may not be anyone willing to buy your investment at a price acceptable to you or even at all. In that event you will have to wait unless the asset is put up for sale, and even then, the timing of and ability to exit will depend on completion of a transaction to sell the underlying property.
Variable income return on your investment
While Brickowner provides gross income estimates based on information from third parties, these are not guaranteed, and it is possible that lower income is secured. Income could even cease entirely for certain periods. For example, if a substantial repair cost arose, Brickowner might need to obtain a loan secured against the underlying property to undertake the repair. Repayment of such a loan would be met by future income.
Brickowner believes investing in property and unlisted shares should only be done as part of a diversified portfolio. This means investing smaller amounts in multiple properties rather than larger amounts in very few properties. We believe you should spread your Brickowner investments across multiple properties to minimise excessive exposure to any one property which may suffer from adverse circumstances such as tenant default or a problem that impacts valuation.
Voting and Disposal
You will be able to inform Brickowner of your views on investments, but you will not be able to make decisions relating to the management of the company or the property. Brickowner reserves the right to sell the property and return net proceeds to investors, to cover unforeseen circumstances. This may result in your receiving back substantially less than the amount invested, and the crystallisation of taxable income sooner than expected.
You will be responsible for the payment of your own tax which may include capital gains and/or income tax. We do not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status you must seek professional advice before you invest. Each company you invest in will be liable for, and pay, corporation tax and any returns you receive will be paid to you net of any corporation tax due.The basis of taxation may change over time.
Brickowner Limited operates the crowdfunding website www.brickowner.com and is not the issuer of any investments (although an associated company, Brickowner Investments Limited, is one of the investment issuers promoted on the website). When you make an investment, the risk to your investment capital is the risk that the investment issuer will not generate sufficient returns to pay you back in line with any investment objectives set out in the Information Memorandum. The investment issuer’s ability to pay you will be affected by the underlying property-related investments it makes. Brickowner Limited will take steps to protect investors’ interests where the issuer cannot meet the investment objective in accordance with the relevant Information Memorandum