Holiday Park Investment Or Not. What To Do With £70,000

badger09

Call me a cynic, but this appears to be yet another of these 'I have £x000 to invest and I've seen this amazing/guaranteed/spectacular investment opportunity. What do you think?' threads where the brand new OP never revisits the thread.

Or if they do revisit without logging in, then don't have the courtesy to thank or even acknowledge the contributions made.

firestone

badger09 wrote: »

Call me a cynic, but this appears to be yet another of these 'I have £x000 to invest and I've seen this amazing/guaranteed/spectacular investment opportunity. What do you think?' threads where the brand new OP never revisits the thread.

Or if they do revisit without logging in, then don't have the courtesy to thank or even acknowledge the contributions made.

if it was- not sure they would like the answers!

BananaRepublic

badger09 wrote: »

Call me a cynic, but this appears to be yet another of these 'I have £x000 to invest and I've seen this amazing/guaranteed/spectacular investment opportunity. What do you think?' threads where the brand new OP never revisits the thread.

Good point. Either they are naive scam merchants, or they don't like the answers. I suspect the former.

TBC15

jamei305 wrote: »

The graph is based on starting with £0 and investing a certain amount per month, rather than starting with £x and leaving it alone.

Ah the devils in the detail/title with graphs.

Anyway,hows hoohum/pointless fishing trip here folks getting on with his cogitations?

hoohum

The deal is that I would own a fixed bricks and mortar studio apartment on a 250 year lease that it is managed and operated by a separate company that pays all running costs, with the marketing carried out by Hoseasons, and promises a 10% return for the first 5 years and 12% net return for the 2nd 5 years of a 10 year lease which, at thee end of its term is renewable by negotiation. The same company offers student let deals. The Holiday Park itself has just been refurbished after the original owner died and it has been around for 40 years. I just can’t see being able to sell it though if I needed to and of course the company who runs it could go bust so I’m generally put off now.

AnotherJoe

As has been said, if the returns were realistically what you put forward, the company would just take them itself and be very profitable.

The fact it doesn’t shows there is a risk attached. A risk of close to 100% loss if the holiday park closes for example. If you own an asset but can’t sell it, it’s worthless. Or even worse, it’s less than worthless as you may still be tied into maintenance contracts.

Student lets, BTW, are also notorious for being a good way to lose money so the fact they operate these as well,doesn’t fill me with confidence.

bostonerimus

hoohum wrote: »

The deal is that I would own a fixed bricks and mortar studio apartment on a 250 year lease that it is managed and operated by a separate company that pays all running costs, with the marketing carried out by Hoseasons, and promises a 10% return for the first 5 years and 12% net return for the 2nd 5 years of a 10 year lease which, at thee end of its term is renewable by negotiation. The same company offers student let deals. The Holiday Park itself has just been refurbished after the original owner died and it has been around for 40 years. I just can’t see being able to sell it though if I needed to and of course the company who runs it could go bust so I’m generally put off now.

Repetition will not change the answers you'll get here. Avoid all these, holiday home, student housing, car park etc schemes as they are risky and often constructed with the purpose of separating a fool from their money, A well planned, long term strategy for investing in a portfolio of equities and fixed income on regulated markets is less risky and will give better returns. The choice is obvious, if you choose not to take the basic advice given, then ok, it's your money, not ours.

Eco_Miser

hoohum wrote: »

The deal is that I would own a fixed bricks and mortar studio apartment on a 250 year lease

hoohum wrote: »

promises a 10% return for the first 5 years and 12% net return for the 2nd 5 years of a 10 year lease

What's the 10 year lease for if you've got a 250 year lease?

What happens if the studio fall down before the 250 years is up? although I don't suppose that'll be your problem.

hoohum wrote: »

that it is managed and operated by a separate company that pays all running costs, with the marketing carried out by Hoseasons,

Does that just mean they put it in their catalogue?

hoohum wrote: »

The Holiday Park itself has just been refurbished after the original owner died and it has been around for 40 years.

So new owner trying to get their money back by selling off the lets individually.

hoohum wrote: »

I just can’t see being able to sell it though if I needed to and of course the company who runs it could go bust so I’m generally put off now.

Good.

grey_gym_sock

hoohum wrote: »

The deal is that I would own a fixed bricks and mortar studio apartment on a 250 year lease that it is managed and operated by a separate company that pays all running costs, with the marketing carried out by Hoseasons, and promises a 10% return for the first 5 years and 12% net return for the 2nd 5 years of a 10 year lease which, at thee end of its term is renewable by negotiation. The same company offers student let deals. The Holiday Park itself has just been refurbished after the original owner died and it has been around for 40 years. I just can’t see being able to sell it though if I needed to and of course the company who runs it could go bust so I’m generally put off now.

even if the company doesn't go bust and does honour the contract - which is very far from certain - that would mean that after 10 years, you've got back a total of £77,000 in return for the £70,000 you originally put in.

"renewable by negotiation" means nothing. there might be no deal at all on offer at that time ... the park might have closed down. and your lease may have no significant remaining value.

if all you got back of value was that £77,000 over 10 years, that's equivalent to c. 1.7% compound interest. which is very low, for the level of risk - i.e. given that you could lose the lot, if the company instead went bust.

firestone

hoohum wrote: »

The deal is that I would own a fixed bricks and mortar studio apartment on a 250 year lease that it is managed and operated by a separate company that pays all running costs, with the marketing carried out by Hoseasons, and promises a 10% return for the first 5 years and 12% net return for the 2nd 5 years of a 10 year lease which, at thee end of its term is renewable by negotiation. The same company offers student let deals. The Holiday Park itself has just been refurbished after the original owner died and it has been around for 40 years. I just can’t see being able to sell it though if I needed to and of course the company who runs it could go bust so I’m generally put off now.

Very hard to believe they pay all running costs - think i would triple check all the small print!