We’ve all heard the horror stories: people putting their life savings into an exciting investment opportunity then losing the lot after it turns out to be a scam or the company goes under. It’s no surprise, then, that investing can be scary.
You’ve probably heard that there’s a new company on the investment market called The Property Crowd. We help people get into the property market or build their property investment portfolio using the power of crowdfunding. You’re interested, we sound legit … but you’re a bit wary. How can you be sure that we’re not going to rip you off?
We get it. We’re new, and we don’t have a legacy that proves that we know what we’re doing – yet. So in the interests of honesty and transparency, let us respond to some of those concerns.
Is My Money Secure?
Short answer: 100%. Every penny you invest into The Property Crowd is held in a trust account, separate from The Property Crowd’s own trading account, so there’s no risk of your money getting mixed up with other people’s (or ours). Keep tabs on your investment and how it’s performing by accessing your personalised dashboard 24 hours a day, seven days a week.
It’s also worth noting here that when we launched The Property Crowd, we didn’t just think, “Hey, that’s a good idea – let’s start a property crowdfunding company.” No – The Property Crowd is licensed by the New Zealand Financial Markets Authority (FMA) as an equity crowdfunding platform, which basically means we’re totally legit.
Put simply, the FMA are the official government guys who are responsible for enforcing securities, financial reporting and company law as they apply to financial services and securities markets. Becoming licensed by the FMA doesn’t happen overnight; in fact, it can sometimes take years. While we’ve been working on The Property Crowd for some time, we only became FMA-approved in October 2018. We were certain that our idea was a good one – one worth patiently waiting for the official go-ahead. Now we’re FMA-approved, we can start offering properties that you can invest in – and be legit at the same time. Here is a Facebook comment we got:
“As a private investigator and early adopter in this investment strategy, I can confirm it is not a scam and the company has ensured adequate security measures have been met for both the safety of their company and the independent investors.”
Are My Transactions Secure?
Short answer: 100%. Just like any reputable website that deals with online money transfers, we use data encryption to encode your data and keep it safe when it’s in transit. Our VPNs (virtual private networks) offer a secure tunnel that locks down and maintains your data security, so baddies can’t get a hold of your personal details.
Of course, we always recommend that you keep your login, financial and password details to yourself, and regularly change your password to increase your security.
How is My Investment Protected?
In the unlikely event that The Property Crowd liquidates, your investments and money will always remain safe and accessible. Any money that’s sitting in your account will be returned to you. Your money will always be your money – it’s really as simple as that.
Each property that we offer is ring-fenced in a holding company that’s separate from The Property Crowd’s assets and liabilities, and is managed by an independent director. Think of each property almost like they’re independent companies. In the event of financial distress, the property will continue to be managed by the independent property management company. As a shareholder in that company, you can vote to continue owning PropertyShares in that property or selling the property altogether and exiting.
Need a Little More Reassurance?
We here at The Property Crowd wholeheartedly believe in our company – that we can facilitate affordable investment opportunities for every Kiwi along with socially-responsible housing for tenants – but we understand that you might have more questions. Our FAQs are filled with common questions; check them out now to find out more about what makes us tick. Can’t see your question on the list? Contact us today.
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