Fractional property investment with Select Estate

Andrey1

Hi,

Has anybody tried fractional property investment with Select Estate?
They offer 8% net income for 5 years fixed and assured exist strategy with 110% capital return starting from 10000£ investment.

Sound very good, therefore raises concerns.

Thanks.

jimjames

Presumably with potential of losing 100% of your money and not getting the income.

Who is guaranteeing the payments?

Do you already have other stock market investments that are less risky?

Andrey1

They say it is protected by First Charge over the hotel building and loan notes structure.
Payments will be made by Security Trustee who has access to Hotel's bank account.

Gadfium

Andrey1 wrote: »

They say it is protected by First Charge over the hotel building and loan notes structure.
Payments will be made by Security Trustee who has access to Hotel's bank account.

That's reassured me. I'm in!

:rotfl:

Gadfium

Andrey1 wrote: »

They offer 8% net income for 5 years fixed and assured exist strategy with 110% capital return starting from 10000£ investment.

If they could offer that, then why would they be bothering going to Joe Public looking for money? They could borrow a huge amount from the banks/finance markets and sit back and make a fortune on it. No messing with ordinary punters, helplines, forms and all that guff.

Unless, of course, no bank would touch them. Or that it is a highly risky proposition, totally unregulated, with a guarantee that's not worth the paper that it's written on and designed to part fools from their money.

Malthusian

8% again. Why is it always 8%?

weenie15

Any mention of being regulated by FCA?

Andrey1

Haven't seen anything about FCA.
Made a search further and found that it is done through Capitalise Invest

jimjames

Malthusian wrote: »

8% again. Why is it always 8%?

I guess they've done their research and 8% is an amount that doesn't overly raise alarm bells and is also high enough for people to overcome their caution and throw their money at these schemes.

weenie15 wrote: »

Any mention of being regulated by FCA?

I doubt it. Unregulated schemes like this promising unrealistic unguaranteed, guarantees would not be regulated by the FCA so you can lose your entire investment.

colsten

Gadfium wrote: »

That's reassured me. I'm in!

:rotfl:

Hey me too, piling in half a million as we speak. protected by First Charge over the hotel building and loan notes structure. Payments will be made by Security Trustee who has access to Hotel's bank account. Totally safe. Safest ever yada yada.

Andrey1 wrote: »

Haven't seen anything about FCA.
Made a search further and found that it is done through Capitalise Invest

You should have looked closer. Capitalise Invest is saying on their website that it is not authorised and regulated by the FCA and clients who proceed to purchase investment products will not have access to the Financial Ombudsman service or the financial services compensation scheme.

Malthusian

I guess they've done their research and 8% is an amount that doesn't overly raise alarm bells and is also high enough for people to overcome their caution and throw their money at these schemes.

I agree. My personal theory is that it is a high enough percentage to appear better than anything you can get on the high street (those 6% monthly saver things) but low enough to allow people to fool themselves into thinking they are taking a calculated risk. (But they are still fooling themselves and 8% guaranteed is still too good to be true.)