Hotel room invest? One to consider....

Joy_mate

Hello forum people.:):):)
I am thinking to invest in to hotel pod?(ibis) investment range 80k-120k
They are assuring 7% net rental income for 5 years. (Is that possible?????)
Do you see any drawbacks on this proposal?:D:D
What would you choose...? Invest in BTL 1 bed flat or invest in hotel pod? (Any particular reason for choosing one)
I am sure some of you must have experience in investment sector..:T:T
Thank you in advance.

G_M

Good luck trying to sell your hotel pod when you decide you need your investment back.

Or when you discover it is not generating the income you hoped for.

hazyjo

Presume this thread relates to the flat you're talking about https://forums.moneysavingexpert.com/discussion/5511126

eddddy

This sounds like an unregulated business investment. So it's only really for 'sophisticated investors'.

Don't treat information from unregulated firms in the same way you would treat information from a regulated consumer investment firm like a bank.

(In general, I treat information from salespeople from unregulated investment firms in the same way I would treat information from a stranger I meet in the pub.)

Joy_mate wrote: »

They are assuring 7% net rental income for 5 years. (Is that possible?????)

That's easy...

I sell you an investment for £100k, which is only really 'worth' £50k.

Then I pay you back 7% (£7k) for 5 years.

The result... after 5 years you've paid £65k for something that's 'worth' £50k.


(Obviously, these are general comments based on my own experiences, and don't relate to the company you mention - Your Honour!)

hazyjo

Why are you so set on investing in something property related... isn't there an investment board on here that can help you?!


Jx

jimmy_cricket

Google skelwith group. Their investors did not do overly well

zagubov

Joy_mate wrote: »

Hello forum people.:):):)
I am thinking to invest in to hotel pod?(ibis) investment range 80k-120k
They are assuring 7% net rental income for 5 years. (Is that possible?????)
Do you see any drawbacks on this proposal?:D:D
What would you choose...? Invest in BTL 1 bed flat or invest in hotel pod? (Any particular reason for choosing one)
I am sure some of you must have experience in investment sector..:T:T
Thank you in advance.

This isn't like a timeshare in any way is it? ie a perpetual financial commitment where you have to pay ongoing fees and charges that never end and can only rise. If so, they can be a financial burden in perpetuity and turn into a real poison pill for your inheritors if you can't sell them on before you die. Discussed many times on this forum.

AdrianC

It's eminently possible to guarantee 7% return over 5yrs. That's 35% of your original money paid back to you.

All you then need to do is worry about what happens to the yield after that, and who's going to buy the room off you for even 65% of what you paid.

theartfullodger

12% with savingstream: Why settle for less??
https://savingstream.co.uk/

Or Zopa,
https://en.wikipedia.org/wiki/Zopa
I get 6-8%, consistently, for several years..

Bluebirdman_of_Alcathays

theartfullodger wrote: »

12% with savingstream: Why settle for less??
https://savingstream.co.uk/

Or Zopa,
https://en.wikipedia.org/wiki/Zopa
I get 6-8%, consistently, for several years..

There are some VERY iffy loans on saving stream.....

AnotherJoe

You'd be an idiot to do this. Numerous reports of people losing money in these schemes. Hotel pods, student rooms, parking spaces, containers, even rows of vines. You have only to see the headline to know that sooner or later some mug will be losing money and proclaiming how unlucky they were.

If there really was such money to be made the people selling them would simply do it themselves.