store first

dunstonh

If you choose to carry on with them then yes it's guarantee,

It is not a guarantee as guarantee means you get your money or return irrespective of what happens. That is not the case with these.

Stock market due to face a 3 billion downturn this year but people still jump at it.

£3 billion is nothing. Markets go up and down all the time. However, at least people know what they are getting into. Unlike those that seem to invest in this type of scheme.

Damian1234

dunstonh wrote: »

There is no guarantee with Store first and you have likely underperformed what Zurich would have produced with their standard mixed equity funds since Jan 2012.

For the level of risk you are taking, 8% doesn't seem attractive.



yes



As an ex financial adviser you should know that the pension is outside of the estate and not subject to the contents of a Will.

Yes there is guarantee.

bigadaj

Damian1234 wrote: »

So what do you naysayers have to say a abouth this. He's seen returns as promised and so have I. At first it was a scam or it weren't guaranteed then you people argued that after year 2 it weren't guaranteed, but he's got a return. Now your asking about selling. Are you people paid to write negative things

You've joined just to comment on this, naturally people are going to be sceptical about your comments and reasons for posting.

Once you have capital returned and a decent level of payment/ interest/ rent then well treat the comments with a bit more seriousness.

You might not be aware of bernie madoff, or more generally ponzi schemes, though I think you are probably very aware of the principle, but high returns can be paid for some time from your capital investment, so it's wise not to be too confident until your capital is repaid. Such schemes can be profitable for early investors as later punters capital is paid back, store first could be fantastic but only time will tell.

Daniel54

Damian1234 wrote: »

Yes there is guarantee.

Which for an unregulated investment is worth nothing more than the paper it is written on

mania112

Damian1234 wrote: »

Yes there is guarantee.

Firstly, the investment is unregulated, which means if someone runs off with your money then tough. You won't be able to fall back on the FCA or a compensation scheme and will instead have to take matters into your own hands which could prove expensive and ultimately fruitless.

Secondly, assuming the investment is bona fide, you will be reliant on the operations of the self storage operator concerned. If they are inefficient then occupancy could be low, hitting your rental income. And if they go bust your investment could prove worthless unless another operator takes over the management of the premises and your pod/unit, in which case they would probably negotiate different management fees. Things could get very messy.

And thirdly you may struggle to find a buyer in future if you want to get out.

Having looked around the web most of the adverts for storage pod investments lead back to a company called Store First Ltd, which operates several storage depots in the Yorkshire and Cheshire regions. While I have no reason to believe the business is anything other than proper, the potential issues I mention above could apply in a bad case scenario.

In simple terms it seems you buy a 250 year lease on a pod from £3,750 depending on size. Store First puts in place a 6 year agreement to rent and manage your pod, promising an 8% yield (after fees) in each of the first two years, with the option to extend the guaranteed return at the end of two years. When your pod is let you'll pay 15% of your rental income to Store First, as well as service and ground rent charges.

Even if we assume occupancy is good, what happens if Store First goes bust or walks away after six years? You could be left with no rental income and an asset that's very difficult to sell on.

All in all, I think there are just too many potential downsides to make these types of investment appealing, but obviously you’ll need to investigate more closely and form your own conclusion.

Teaandscones

Damian1234 wrote: »

Yes there is guarantee.

Who is the guarantor

If it is the bank of England then that is credible but if it is an unregulated company then to paraphrase Sam Goldwyn, it is not worth the paper it was written on.

dunstonh

Damian1234 wrote: »

Yes there is guarantee.

There is not a guarantee. Just because they use the word guarantee does not mean it is. Unregulated schemes can say what they like. However, any scheme which has 100% loss potential, as this does, cannot be classed as guaranteed.

mrwowfactor

as with all these cold call schemes you have to make sure you're not paying a massive mark up
for what's on offer landbanks timeshares wine or whatever, if you checkout a few property websites
this looks a bit expensive when you compare it to prices for modern warehouses with facilities
in the same area, which can be had for less than £50/sq ft FREEHOLD, far less for leashold,
how will these pods ever compete with this in an open market ?
even for a single floor building 25 ft for 3.7k must represent an astronomical profit per acre if you work it out
even allowing for the cost of land, buildings, roads, carpark and marketing etc.
this just doesn't add up so in the words of the dragon I'M OUT ...
and btw would you invest in a new madoff scheme ... and btw whose bank account did the dylan harvey
deposits end up in please tell me someone ...

ChrisPay

I was considering investing in Store First however fortunately I came across this thread. Many thanks to all the contributors, especially Dunstonh and Matt5791.

dunstonh

Media article following radio coverage today:
http://www.bbc.co.uk/news/business-29687817