Investing a lump sum to generate an income

Charki

What were your conclusions about investing in student pods? I looked at a couple of sites: Zita student and Experience International which both seem to offer very good rates 9-10% per year guaranteed for 2-5 years depending on the development. You have to buy off plan. Are they genuine opportunities or some sort of pyramid scheme where you get paid by the next people who pile in? They seem to be being snapped up but that might be being said to make one jump in.

atush

My conclusion is,

bargepole, don't touch with.

Radiantsoul

I guess a lot depends on your circumstances, but it would seem to be quite challenging to retire at 50 even with a reasonably largely large lump sum. It might be worth considering if you can do some limited or part-time work.

johnnyredgate

IFA has recommended longterm guaranteed investment bonds, so will need to look into that.
Have looked into student investment a little bit more, a bit of a minefield and think you need to do quite a bit of research. There appears to have been problems with some of the management companies going into administration, there are misleading claims from some agents about who is the managing companies. Apparently there are problems with completion of some of the offplan builds. There appear to be quite a few pod blocks being built in cities were there is already plenty of student accommodation. However they are held by pension funds as a lower risk investment. I am don't have the experience to compare them with other investments. I am looking into a hotel room fraction at the moment, so will probably have another look into buying a student pod in due course - probably a safer investment that a hotel room though!!

atush

Hotel room fractions are again a minefield and I would avoid.

You seem, with this and student pods to be looking at the most risky investments out there rather than good old collective investments in funds or investment trusts- some of mine which are up 30% this year.

Madness?

looking_forward

atush wrote: »

Hotel room fractions are again a minefield and I would avoid.

You seem, with this and student pods to be looking at the most risky investments out there rather than good old collective investments in funds or investment trusts- some of mine which are up 30% this year.

Madness?

I agree , I did take an interest in care home investment , but that also appears a riskier avenue.

Are you funds broker managed ?

johnnyredgate

looking_forward wrote: »

I agree , I did take an interest in care home investment , but that also appears a riskier avenue.

Are you funds broker managed ?

No not at the moment, am waiting to talk to another IFA .

Yes I think these investments look very attractive with set guaranteed returns of 12.5% per annum and with a developer 150% buyback of original purchase price at the end of the term so you think you know what you can expect. However I am not sure that the guarantees will hold much water if the guarantor fails and does not have the funds to meet the guarantee.

sabretoothtigger

That sounds too good, they can finance cheaper then that surely. 'at end of term' Is that 20 years?

atush

looking_forward wrote: »

I agree , I did take an interest in care home investment , but that also appears a riskier avenue.

Are you funds broker managed ?

No, at the moment self managed.

looking_forward

johnnyredgate wrote: »

No not at the moment, am waiting to talk to another IFA .

Yes I think these investments look very attractive with set guaranteed returns of 12.5% per annum and with a developer 150% buyback of original purchase price at the end of the term so you think you know what you can expect. However I am not sure that the guarantees will hold much water if the guarantor fails and does not have the funds to meet the guarantee.

I agree and that was my take , looks like a good return but there was potential for much downside.