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Harewood Associates

edited 30 November -1 at 1:00AM in Savings & Investments
42 replies 59.2K views
MoneyquerieMoneyquerie Forumite
1 posts
edited 30 November -1 at 1:00AM in Savings & Investments
Has anyone heard of Harewood Associates? They are offering high interset monthly saver rates. Are they legit??????
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  • edited 13 January 2013 at 12:01PM
    dunstonhdunstonh Forumite
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    edited 13 January 2013 at 12:01PM
    They are not offering deposit savings rates. No FSCS protection. No FSA regulation.

    If they were FSA regulated then the website would be full of breaches. As they are not FSA regulated, they can more or less say what they like.

    100% of your capital is at risk. This is an unregulated invesmtent. To even compare it with cash savings is disingenuous
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 13 January 2013 at 12:52PM
    srcandassrcandas Forumite
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    edited 13 January 2013 at 12:52PM
    Has anyone heard of Harewood Associates? They are offering high interset monthly saver rates. Are they legit??????

    Nothing wrong with the core business model. It's one frequently used by semi retired builder/plumber/electrician who help with the renovation. And I like such people as they improve the UK housing stock - sort of recycling. Also a good way to build up a BFL portfolio.

    As a core client they say they buy the property on your behalf so you have some security.

    But as Dunston says in different words "Who are these people and why should I trust them?" Of course that is true of even high st banks but at least you have the protection Dunston pointed out :)

    But why do they need cash and why pay 20% for it? Are they changing what they claim is a very successful business model? Have they been so convinced that the model works that they have borrowed to fund inside investment and are now sitting on a poor property portfolio?

    If it seems to good to be true ..................:cool:

    And finally: Why does the good reference for them try to download a trojan horse? :eek:
    I believe past performance is a good guide to future performance :beer:
  • innovateinnovate PPR
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    ...and why does someone specifically sign up to MSE to ask about them?
  • dunstonhdunstonh Forumite
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    As a core client they say they buy the property on your behalf so you have some security.

    Although we dont know what happens if Harewood fail. How is the ownership of the property held legally?

    If it is held against property, as it suggests, then rental yields are not running at 20%. So, if you are getting 20%, where is the rest of the money coming from? Is it doing a madoff and using other investors money to pay you?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • srcandassrcandas Forumite
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    innovate wrote: »
    ...and why does someone specifically sign up to MSE to ask about them?

    You're so suspicious innovate!!! We all posted our first post once ;)

    And if you are right it hasn't worked has it. Which is what's nice about this place :beer:
    I believe past performance is a good guide to future performance :beer:
  • srcandassrcandas Forumite
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    dunstonh wrote: »
    Although we dont know what happens if Harewood fail. How is the ownership of the property held legally?

    If it is held against property, as it suggests, then rental yields are not running at 20%. So, if you are getting 20%, where is the rest of the money coming from? Is it doing a madoff and using other investors money to pay you?

    The profit comes from the increased value of the renovated property. I don't believe they promote renting per se.

    I've seen this model work but as with all property: location, location, location. And in the cases I know the investor can do most of the renovation so costs are minimised :)
    I believe past performance is a good guide to future performance :beer:
  • edited 13 January 2013 at 1:51PM
    dunstonhdunstonh Forumite
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    edited 13 January 2013 at 1:51PM
    The profit comes from the increased value of the renovated property. I don't believe they promote renting per se.

    So it really is a speculative commercial arrangement.
    I've seen this model work but as with all property: location, location, location. And in the cases I know the investor can do most of the renovation so costs are minimised

    The model can certainly work and work well for builders, those with good DIY skills and getting the right property and location. However, that is very different from savings accounts which is how they position it. Every now and then, even the most successful developer will make a mistake and lose money. So, who suffers the loss in that case? Are you funds pooled with others or is each property in isolation? With all the experts they say they have and use, are they charged explicitly when used or a pooled rate? They also pay commissions to introducers as well. How many people are taking a cut of this? It keeps throwing up questions which are not answered on the website.

    This is a million miles away from what the OP called high interest monthly saver rates. It is a commercial arrangement with capital at risk.

    The website says guaranteed returns are available which offer a safe investment and is an ideal alternative to a high interest savings account. That doesnt sound like property development. It goes on to say:
    Investments are secured on Harewood residential properties. Total borrowings on any property will never exceed 70% of the property value. The valuation of the property is undertaken by an RICS qualified valuer based on an open market valuation. You can be assured that your investment is safe and secure. Interest is paid into your account monthly Whether you have a busy career or enjoying retirement, you can carry on with life knowing that your savings are producing a healthy income, month after month. Again that doesnt sound like property development. Interest comes from income generated. What are they doing that is generating over 20% returns (as they have to earn their cut) that is so safe that they can call it guaranteed?

    It looks like they are using investors money to buy properties rather than borrow from a bank. They are then using the gains on the development side to provide a 20% income return. So, the development needs at least 20% gains net of costs, tax etc and they need to keep doing it to keep paying the 20% a year. If they stop doing it the whole thing collapses (a 40% capital gain can pay two years at 20%. What happens if there is no replacement gains. They need to pay the 20% a year). Plus, whilst they borrow only upto 70% on a property, they can easily end up with far greater liabilities elsewhere. The creditors (or savers if we go by their marketing) giving them money for example.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • srcandassrcandas Forumite
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    dunstonh wrote: »
    It looks like they are using investors money to buy properties rather than borrow from a bank.

    Or as clients are hard to find they need to group client's money to maintain turnover. Sensible approach if risks are fully explained and balanced by possible returns. [borrowing from the bank? Dunston I'm surprised at you ;)].

    But it could be interpreted as the final rolling of the dice for a failing business.

    ps If you're seeing this HA a response might help.
    I believe past performance is a good guide to future performance :beer:
  • Their home page says "As seen in Mail on Sunday, Estates Gazette, Lancashire Life" but I searched these websites and got no results for "Harewood Associates".

    Maybe I will give it a miss... :rotfl:
  • srcandassrcandas Forumite
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    Sceptic001 wrote: »
    Their home page says "As seen in Mail on Sunday, Estates Gazette, Lancashire Life" but I searched these websites and got no results for "Harewood Associates".

    Maybe I will give it a miss... :rotfl:

    Had you found it recommended in the Mail on Sunday I for sure would give it a miss :rotfl:
    I believe past performance is a good guide to future performance :beer:
This discussion has been closed.

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