That is a bit unbalanced, because you basicly need to start getting rid of the hoarded items right away.
Without the ability to gain new items, you are stuck with those. You can't upgrade them, you cant sell them, and u can't bost other items, cause you can't get other items.
From what i have understod so far, the hoarded items for the grace periode don't take up space, so you can use them, otherwise if your are right BadPup(teasing) you lose all the items the moment you start, and that would really be unfair.
After the grace periode they start counting as inventory space, this make more sense to me.