Emergingproperty

JohnRo

http://www.emergingproperty.co.uk/

Does anyone have any views or information about this outfit. My sister has recently been in contact and looking to purchase student accommodation with them and I've told her not to bother unless she wants to lose her money.

Personally this sort of thing wouldn't even register a tiny blip of interest on my radar but it clearly seduces some into parting with tens of thousands.

Offices in Mayfair, London and Dubai, UAE, completely unregulated as far as I can see.

Her enquiry related to a new student property called Durham House.

Offering 10% NET fixed income for 10 years, the usual scammers guff imo.

doe808

I would go nowhere near this. And I have been involved in a hell of a lot corporate financing of student schemes in the last 18 months. The good stuff is well fought over by the banks and finance isn't hard to get. Why would you go down this route, with all the extra admin, costs, etc if that was the case?

JohnRo

She forwarded me the email asking for my opinion. I know nothing about this sort of thing but it seem to have all the trappings of a complete rip off or even a scam.

This is our 12th student property development to provide the following unique benefits to our clients:

· 10% NET Fixed Income for 10 Years

· Asset-Backed Contracts - no third-party shell companies

· UK’s Only NHBC Registered Student Developer - enhanced quality & security

· Fully Managed: Every detail, every day - hands off & hassle free

· Flexible Exit Strategy - providing peace of mind

· Yield-Driven Capital Growth - maximising your returns

· Available from £44,950



Newest & Closest Student Rooms

This is a fully refurbished student property that will become operational in August 2016. It will serve Durham University - a World Top 100 University that consistently ranks in the top 5 nationally each year.

The undersupply of accommodation in the area is such that the university has this year been forced to transfer students to properties in neighbouring Middlesbrough.

With the UK's only NHBC registered student developer responsible for the refurbishment, Durham House is assured to be of the highest quality. It will be the newest and closest private student accommodation serving the nearby university campus, which is just an 8-minute walk away.

High Yields & Capital Growth:

In addition to the 10% NET annual yields, the fully transferable 10-year fixed income period also ensures a flexible exit with healthy capital growth potential. Even with 40% capital growth at exit, you would be able to provide future buyers with guaranteed income terms more attractive than many off plan properties from other developers.

Resale Scenario - Year 5 Resale with 20% Capital Growth (based on purchasing an en-suite unit for £52,950)

ü Purchase price - £52,950

ü Annual Income - £5,295 NET

ü Completely Hands Free

ü Year 5 Exit with 20% Capital Growth

ü Conditions Provided to New Buyer: 8.3% NET Fixed Income for 5 Years.

Total NET Profit: £37,065 at 14% Avg ROI

The 8.3% NET for 5 Years that the new buyer receives at resale in this scenario is highly attractive on a fully operational property with proven performance and immediate income - the returns are far higher than what many other developers are offering off plan. This ensures that it will be easy to find a new buyer.

REMEMBER THAT THIS IS JUST A SCENARIO - YOU ARE ABLE TO EXIT AT ANY TIME THAT SUITS YOU. Please refer to page 21 of the Investor Report for more information.

Buyer Security:

· NHBC Registration: As the UK's only NHBC student property developer, buyers are assured of a high quality build.

· Asset Backed Contracts: Fixed income contracts are tied directly to the asset rich developer - no third party shell companies.

· Impressive Track Record: The developer's previous student properties have been completed on schedule and were 100% occupied from Day 1 of opening.

· Flexible Exit: The 10 year fixed income period provides a flexible exit.

Why Purchase UK Student Accommodation?

Student accommodation has been the best performing asset class for the past two years and demand is about to get even stronger.

Last year witnessed record intake numbers in to UK universities, with government legislation likely to catalyse further growth in the 2015/16 academic year.

This increasing demand is stretching the critically undersupplied student housing market, which has never been under more pressure.

Please refer to the attached Investor Report for more details.

I hope that you find this information useful. Please feel free to contact me with any comments or questions you may have.

I look forward to hearing from you.

The scenario is complete and utter fantasy imo.

masonic

No sign this outfit is regulated by the FCA, so whether it is a scam or not, it's not one I'd touch with a bargepole. There are regulated P2P platforms offering not too dissimilar loan-based offerings secured on such developments.

Eco_Miser

The undersupply of accommodation in the area is such that the university has this year been forced to transfer students to properties in neighbouring Middlesbrough.

So it's not in prestigious Durham city, but the satellite Queen's Campus, Stockton, and parts of Middlesbrough are closer than much of Stockton. It's all one conurbation anyway.

Not that this makes a dodgy proposition any better.

ManAtHome

Something on the telly this morning about student accomodation in Liverpool that went a bit wrong http://www.bbc.co.uk/programmes/b06cpfwb wasn't watching that closely, but seemed to be a problem between investors, management company, and freeholder.

TCA

JohnRo wrote: »

The scenario is complete and utter fantasy imo.

Agreed. Student property investment, with very few exceptions, is another one not to touch with a bargepole. I could be wrong but their Mayfair address looks to be one of those virtual offices, which although it looks quite classy, would put me off for a start:

http://www.theclubhouselondon.com/