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  • FIRST POST
    • PMR33
    • By PMR33 17th Nov 16, 3:50 PM
    • 2Posts
    • 2Thanks
    PMR33
    Bonds
    • #1
    • 17th Nov 16, 3:50 PM
    Bonds 17th Nov 16 at 3:50 PM
    I have seen a bond advertised that offers 9.9% pa over 5 years. They operate an insurance scheme to protect up to £75k. Company is Blackmore Investments and they are property developers. It sounds too good to be true! So is it? Does anyone have any experience of this company? They are relatively new so there is little online about them.
Page 2
    • Rancid
    • By Rancid 15th Jan 17, 3:15 PM
    • 7 Posts
    • 0 Thanks
    Rancid
    Great thread, I was baffled how this return could be legitimate

    Thanks all

    T
    • dunstonh
    • By dunstonh 15th Jan 17, 5:37 PM
    • 90,321 Posts
    • 57,103 Thanks
    dunstonh
    The return is legitimate. It reflects the risk of failure and the possibility of 100% loss of capital for the type of investment it is. i.e. high risk.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Malthusian
    • By Malthusian 16th Jan 17, 11:57 AM
    • 3,562 Posts
    • 5,468 Thanks
    Malthusian
    Borrowing through the banks is more restrictive and slow. Borrowing through the banks is more restrictive and slow. Raising capital through a bond allows us to be reactive to developments as they come to us
    Originally posted by MrBen123
    Translation: Banks ask more questions than people who click the first link they see on Google.
    • adindas
    • By adindas 30th Jan 17, 9:17 PM
    • 3,213 Posts
    • 1,736 Thanks
    adindas
    I have seen a bond advertised that offers 9.9% pa over 5 years. They operate an insurance scheme to protect up to £75k. Company is Blackmore Investments and they are property developers. It sounds too good to be true! So is it? Does anyone have any experience of this company? They are relatively new so there is little online about them.
    Originally posted by PMR33
    Are you from Blackmore Investments to promote your product ?

    Newly created profile just to post this product ?

    Do you have link mentioning that it is under FSCS protection up to £75K ?

    As someone has said why would they bother with paying 9.9% to Joe Public when they can borrow for around 3% from a bank ?

    It is only a complete idiot is going to believe that your capital is not at risk at the interest rate of 9.9%.
    • Jo Blogs
    • By Jo Blogs 30th Jan 17, 10:09 PM
    • 718 Posts
    • 2,596 Thanks
    Jo Blogs
    4. Suggestion " If it sound to good to be true, let someone else have it."
    Originally posted by DrSyn
    Very sound advice. More than happy to let someone else have this bond that's for sure!
    Saved Nitty Gritty £7440.75 [149%] / £5000-[Sep] £58.44 for the 'Save 12k in 2017' #157
    2017 Womble #35 £3463.27 Sept NSDs 4/15CCCChl 9/12 months
    Sept PPChl#002 Pts 71
    • Thrugelmir
    • By Thrugelmir 30th Jan 17, 11:36 PM
    • 56,682 Posts
    • 50,049 Thanks
    Thrugelmir
    Translation: Banks ask more questions than people who click the first link they see on Google.
    Originally posted by Malthusian
    Banks aren't in the market to provide risk capital. Far better to leave it to investors who can afford a potential loss. Property was the reason that some of UK banking operations suffered so badly in the GFC. After Lloyds merged with HBOS. For a period of time Lloyds was the 4th largest house builder in the country. Until it disposed of the share stakes and ownership acquired.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Malthusian
    • By Malthusian 31st Jan 17, 10:20 AM
    • 3,562 Posts
    • 5,468 Thanks
    Malthusian
    Banks aren't in the market to provide risk capital. Far better to leave it to investors who can afford a potential loss. Property was the reason that some of UK banking operations suffered so badly in the GFC. After Lloyds merged with HBOS. For a period of time Lloyds was the 4th largest house builder in the country. Until it disposed of the share stakes and ownership acquired.
    Originally posted by Thrugelmir
    All of which is true but people who have gulled themselves into believing they are opening a fixed rate deposit bond when they are buying an ultra-high-risk loan note are unlikely to categorise themselves as "investors who can afford a potential loss".

    The general point is valid, regardless of what banks' risk policies may be at this point in time. Investors should ask themselves a) why such high rates are being offered and b) why they are being offered to people who put "best fixed term rates" into Google and click the first result instead of funds and other institutions.
    • xQueenDestinys
    • By xQueenDestinys 9th Jan 18, 12:10 PM
    • 1 Posts
    • 0 Thanks
    xQueenDestinys
    I have purchased a bond from Blackmore, all the information was quite clear this was high risk, 9 months in no problems. They contact without high pressure sale, Its high risk, if you can afford to lose it why not try it. A holiday cost the same to some and has no return.
    • jamei305
    • By jamei305 9th Jan 18, 12:16 PM
    • 271 Posts
    • 325 Thanks
    jamei305
    I have purchased a bond from Blackmore, all the information was quite clear this was high risk, 9 months in no problems. They contact without high pressure sale, Its high risk, if you can afford to lose it why not try it. A holiday cost the same to some and has no return.
    Originally posted by xQueenDestinys
    You lent money to what appears to be a property development company with no track record of successful developments? Not sure I'd want to put capital at risk for such a small return.
    • Fatbritabroad
    • By Fatbritabroad 9th Jan 18, 12:31 PM
    • 217 Posts
    • 106 Thanks
    Fatbritabroad
    I would say if you want to lend on property use one of the p2p sites who offer higher rates than this and at least they are crystal clear what you are buying
    • coyrls
    • By coyrls 9th Jan 18, 12:57 PM
    • 927 Posts
    • 979 Thanks
    coyrls
    if you can afford to lose it why not try it. A holiday cost the same to some and has no return.
    Originally posted by xQueenDestinys
    Do you really think this is a convincing argument?
    • IanManc
    • By IanManc 9th Jan 18, 4:53 PM
    • 404 Posts
    • 636 Thanks
    IanManc
    if you can afford to lose it why not try it. A holiday cost the same to some and has no return.
    Originally posted by xQueenDestinys
    If you can afford to lose it then why bother? If the capital means nothing to you then any spectacular return will mean nothing to you either.

    As for holidays, the return is usually that you've had a good time and come home refreshed.

    Maybe you just go on cr*p holidays?
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