I’m writing this to every single Property Alerts member as I have an urgent message to share with each and every one of you who is a would-be property investor in 2014.
Fact is, 97 per cent of you reading this are going to be banned from buying into the most popular forms of property investments from 1st January 2014.
You’re not going to be able to buy student pods, hotel rooms and the like offering 10 per cent yields etc. The government can dress it up all it likes – but if you’re not part of the clever and riche elite, your investing days are now numbered. Let me explain…
The Financial Conduct Authority, FCA, issued a policy statement – PS 13/3 – earlier this year which effectively bans the promotion of ‘non-mainstream pooled investments (NMPIs) to ordinary investors’ from 1 January 2014.
In simple terms, ordinary members of the public can, from the start of 2014, no longer put money into what we might call ‘unregulated collective schemes’ where someone else takes investors’ pooled resources, controls and runs the investment and pays out, say a set 8 or 10 per cent a year.
We’re talking investments such as student housing, car parks, cemeteries, farmland and hotel rooms. Often, these are terrific investments but Joe Public cannot invest in them from 1 January. As one agent put it, rather ungallantly, ‘it’s all to do with the nanny state and protecting a small number of stupid and poor people who don’t know what they’re doing from themselves.’
There are exceptions though – if you are rich and sophisticated. You can buy into these investments if you are a ‘certified high net worth investor’ or a ‘certified sophisticated investor’ or a ‘self-certified sophisticated investor’.
So, ballpark, if you have an annual income of £100,000, net assets of £250,000 and have invested in similar investments before, you can keep going with these investments. If not, forget it!
Who was it who sang, ‘It’s the same the whole world over, it’s the poor what gets the blame, it’s the rich what gets the pleasure and it’s all a blooming shame?’ It’s as true today as it ever was.
Have to say, this is a brief summary of what’s happening soon. If you are a high net worth/sophisticated investor already, you’re fine as you are. (Same for papertraders too). The only difference is you will need to register with us to receive details of these investments as we will no longer be sending them to the general free membership.
We have lots more material to present to interested members at a free seminar planned for the Hilton Tower Bridge Hotel in London on 16 November; email back for full details of this free event. Places are limited so be quick. And only come if you are a would-be investor please.
We’ll also present one or two opportunities that you may want to invest in before you’re banned! And our friends, Dave Burgess and Jeannie Lumb will be there as well to reveal, whisper it quietly, how some investments they are offering – a hotel, student accommodation and a German property project – will still be available to Joe Public investors after 1 January 2014!
All will be revealed on Saturday 16 November!