Land Investment Groups

RJRock

Anyone out there with any experience with Evolution Land Investment Ltd, a wholly owned subsidiary of the Evolution Wealth Group Ltd or similar companies?

I just want to guage rough opinion on this/similar style company which realises profit on investment through change of usage. Even without successful planning applications, 'worst case,' it seems that land in the South East (exluding London) where they specialise, is delivering a healthy double digit return, according to the literature provided.

I've been approached by ELI, yet am unableto find much third party commentary. I would like to invest over 3-5 years. I understand they charge approx 2% on the sale value of your investment.

Any comments welcome.

dunstonh

Most land will never be developed and never show the level of returns they mention.

Land is illiquid and not suitable for 3-5 years (if you cant find a buyer you are stuck with it). And you have no extra consumer protection in this non-regulated area.

dzug1

It has all the signs of a classic scam.

'I have been approached by' is the first giveaway

Google 'land banking scam' for more information than you would ever want

They are probably new - hence no third party comment. Once that amasses they will shut down and reopen under a new name.

dboswell

the fact you were approached would put 99% of people off.

nrsql

Probably land with very little hope of change of use - and the selling company isn't relying on that for their profit.
Look at the detail:
A strip of land enclosing all the plots which basically means you can't get access even if it can be developed.
The seller getting a proportion of any profit - i.e. retaining an interest.
Not being able to seel on the plot or develop it privately.

Try asking for figures - how many plots they have managed a change of use, how they go about it, what the costs for the process will be, who owns the company, what its the company name as opposed to the trading name.

They may say they don't get any profit until you make a profit - that is possible, that company is runinig at a loss and will liquidate but there is probably another company (or persons) that will have been involved in the deal and taken all the profit - split with the original owner maybe.

They will say there is a secondary market and you will get profit if you decide to sell before any permission is obtained. Ask why they would decide to sell your plot to a buyer rather than a new plot which will get them more profit - and why anyone would want to buy this particular plot. Plots will only change in price due to the fantasy amounts they are trying to sell them for.

JamesU

Evolution Wealth Group Ltd was incorporated August 2009 (Company No. 06996499), so not exactly a well established business. Evolution Land Investment Ltd is not listed, the company does not exist, so this all looks dodgy to me. Avoid.

JamesU

http://wck2.companieshouse.gov.uk/8205e3bf5bd6ff064d4e5f89f75a6eee/wcframe?name=accessCompanyInfo

jamesd

Financial services regulations prohibit them from making first contact with you. They have already demonstrated a willingness to behave in that way and you should use that as your guide to the rest of their conduct.

ESKIMO

Sounds just like purchasing acres of land on the moon to me! Or owning a whole square for of land in scotland and being able to legally call yourself 'Lord' or summit similar.