Anyone heard of BOMAD Homes?

acp94

I found this company online (I think through a social media ad) called BOMAD Homes (https://bomadhomes.com/) but I can't find anything like a review on them, as I think they're are literally a start up.

Does anyone have any advise on whether what they are proposing sounds legit or not? My partner and I would love to get onto the property market, but financially right now it is impossible for us to save a deposit.

I've copied their blurb below for ease, but their website gives a little bit more info. I also received an email from them after signing up for more info, which I've also copied below:

Website
We believe that investing can be a considerable force for good, not only serving the needs of investors but also contributing to a more sustainable society. BOMAD aims to align the interests of those investors with BOMADers (that's you) to enable those stuck in the rent trap to take that first step to owning their own home without the need to save for a deposit. Investors receive a return on their investment and BOMADers are able to move in to the home they want NOW.

Email
To provide further context, we passionately believe accessing the UK property ladder should be more widely available than it currently is. Helping address this known social issue prompted the idea behind BOMAD Homes Limited. Over the course of 5 years, we want to share the benefit of any house price appreciation with the occupier of the property, effectively making the rental money work, with the goal of helping fund the future deposit for the house purchase. There is no requirement for the initial deposit and you get to choose the house you want for your future now.

Any thoughts??

davidmcn

Well, they can't even get their own company name right - they're not "Bomad Homes Limited".

Sounds similar to other scam-esque schemes - you probably end up with none of the advantages of being either an owner or a tenant, while they pull all the strings.

Rodders53

https://beta.companieshouse.gov.uk/company/11307331

Very newly started company. Google the Directors names to see what else they're involved in?

If a things looks too good to be true, it probably is.

SmashedAvacado

BOMAD - bank of mum and dad? bit of a strange name for what is known elsewhere as "lease to own". Lots of schemes like this exist in other markets - you pay rent and build up equity and have a right to buy the property - unusual thing about this one is that you choose the home and they buy it. I suppose it makes sense, and what isnt clear is how long you sign up to lease it for etc. Presumably BOMAD get finance on the property and then pay that using the rent.

Interesting model.

davidmcn

SmashedAvacado wrote: »

Presumably BOMAD get finance on the property and then pay that using the rent.

While leaving the tenant (what sort of tenancy, I wonder?) liable for maintenance and insurance.

[Deleted User]

Unfortunately, this sort of rent to buy scheme appeals to the desperate who feel they have no other options. Its almost making the company sound like a charity to invite trust.

I'd find another way.

Go on the debtfreewannabe board, see if there are ways to adjust your budget so you can save.

JamesFews

I have heard of them and to be honest in theory it sounds like a good idea. Will have to wait for more info as I have signed up to it.

LandyAndy

Rodders53 wrote: »

https://beta.companieshouse.gov.uk/company/11307331

Very newly started company. Google the Directors names to see what else they're involved in?

If a things looks too good to be true, it probably is.

There are four directors. Two have no other directorships. One is also a director of Market Capital Technology Ltd, another newly formed company. One was formerly a director of Chegworth Properties Limited, now dissolved.

That doesn't look like a history of serial scamming.

AndyTails

acp94 wrote: »

I found this company online (I think through a social media ad)

Sounds scammy

acp94 wrote: »

I've copied their blurb below for ease, but their website gives a little bit more info. I also received an email from them after signing up for more info, which I've also copied below:

I have absolutely no idea from that blurb what this company is proposing. Sounds like they're trying to dress up their business as charity, in order to try and sucker people in.

Personally I'd avoid.

muhandis

From what I understand -

1. You pick a property and if it suits the scheme, they buy it.

2. You then "rent" the home (under some form of a commercial 5 year lease I imagine) and are responsible for maintenance, insurance, etc (ie all the responsibilities of a homeowner)

3. You pay rent and for the privilege of doing so get to earn "a share of the house value appreciation over the next 5 years". Presumably if there is no appreciation, all you've done for 5 years is be a tenant with all the responsibilities of a homeowner.

4. IF your house has appreciated, using your share of the appreciation as equity, you can use it as a deposit to buy the house from BOMAD Homes (they hold all the cards at that point).

I can't stress how much of a make-easy-money scheme this appears to be for BOMAD. Run away, fast.

csgohan4

If your desperate to click on these ads, I would question why you are even considering it, debt free wannabee forum is a good place to start

If you can't afford to buy a house, don't dig a deeper hole trying to.