Dream Lodge Group

PeacefulWaters

lollypark wrote: »

My sister saw an advert in a national newspaper and encouraged my mum to go to a presentation in Cornwall.

I recommend an argument with your sister.

lollypark

No

TCA and PeacefulWaters advice noted

Linton

No

lollypark wrote: »

......However this to me does not make sense as this is an asset to anyones estate. My concern is about estate planning in the event of my mother passing without the provision of legal services before the money transfer. Dream Lodge maintain that they are cash rich (then why do they need investment?) and have promised to buy back the lodge at original investment value after 3 years......

How disappointing. I had replied on the basis of helping an old lady not to do something stupid that could blight her final years. Now I find the the problem is seen to be "estate planning", rather a neat euphemism.

lollypark

No

Linton, in all investments this should be considered. I do the same in my investments. What will happen when I die? The worst case scenario is that any investment reverts to the Owners of the complex which is not my mums wishes. My mum does not have a full pension so she sees any ROI will supplement it. I would much rather a less riskier investment is evaluated, that would not compromise the capital. It may be needed in the future to fund her care and/or health issues. I have urged her to speak to her bank and a solicitor for advice. A buy-to-let could be another investment vehicle with myself as guarantor.


Regards
lollypark

colsten

No

May be your mum only cares about the highest return that she can live off for a few more years and not how much she could leave behind?

lollypark

No

Yes she does want a good return but also has left instructions that is why she would like both mine and my sisters name on the agreement. She has before turned down other less riskier investments e.g. bonds in companies. If there were not so many unanswered queries then I would support this investment. However the T&C's do not include some of the claims made at the presentation. Who is to say that she will get that high rate of return which I agree with one of the forum members is unsustainable. I remember similar claims made about endowments back in the late 80's and look what happened with them. Draft accounts received do not have any trace of having being independently audited. An example received shows several thousand pounds of management costs have been deducted from any revenues with no breakdown of what they are. I am going to contact Dream Lodge tomorrow requesting answers to certain key points that have been made by this forum so far. So thank you all. Further thoughts are most welcome

Regards

lollyparl

Linton

No

You can talk to DL but as the company would seem not to be regulated they can say whatever they want. There is no consumer protection.

Also the OP says Mum wants the interest to supplement her pension. Surely at 80 it could be more sensible to start drawing down on the capital than seeking unrealistic returns.

jimjames

No

Why would an 80 year old possibly want to invest in an unregulated scheme where it is entirely possible, and possibly very likely, they will lose all their capital?

Any investment can claim to have a guarantee but unless it is backed by the government or some secure body that guarantee is completely worthless.

A guarantee from a company that they'll do what? Buy the investment back at face value? Guarantee they'll pay 8% for 3 years? What happens after they've given back 24% of your capital? No guarantees then?

Quite unbelievable that a relative suggested she get into this kind of scheme. Even investing in the stock market would be a better option and she'd get 3.5% income for that with far less risk and more liquid investments as well as being fully regulated.

So far 100% no, does that tell you anything?

bowlhead99

No

There are plenty of real estate investment trusts out there that hold entire portfolios of properties receiving rental income which they pass onto investors after fees, and the investors also participate in the increase in property values over time as they are sold. They are regulated and publish frequent market updates (and audited accounts each year); shares in the trusts can be held in an ISA to avoid tax on income and gain; and can be sold on the market through a broker in seconds if she wants the money back.

She could hold several in her portfolio. None would absolutely guarantee income or capital but a 'guarantee' of income from an unregulated investment firm is not worth the paper it's written on anyway. Obviously having £100k in property (even if split between companies investing in nursing homes, industrial premises, office buildings, shopping centres etc) is still a bit 'eggs in one basket' for most - so she could/should consider other types of equities and bonds in her portfolio too. That is what I would do if it was my £100k and the target was simply 'better interest than cash'.

As a side note the company mentioned no solicitor was needed as she is not having a property conveyed into her name - hence, no conveyancing needed. And they don't need a solicitor because they already paid one to write their standard contract which they just want you to sign. However, that doesn't mean you shouldn't pay someone suitably independent for legal or investment advice, when presented with a contract written by somebody you don't know, who inevitably has their own interests at heart. Without even needing to read the contract, all the free advice here is 'don't do it' so one would presume the professional advice would be similar, just more expensive.

Finally, even if for some reason you/she still wants to go ahead with it, please ignore 1st of November as any kind of deadline. Putting you life savings - or even a reasonable proportion of it - into anything is not something that should be rushed because there is no way that equivalently good or bad opportunities will not be also be available next week, month or year, even if that means going to a different company. Any inkling that the investment needs to be made by a certain deadline to obtain the 'guaranteed' returns is a sales tactic. So, you should have longer than 3 days in which to get her to see the light.

le_loup

Dream lode may have no idea how old the lady is. As it's unregulated, DL have no need to find out.


No that I'm saying this "investment" is a good idea!