Anyone heard of BOMAD Homes?

hodman-29

OK for the record the two main directors were directors of CurrencyFair - a successful peer-to-peer foreign currency company.
The concept here is that you rent a house you eventually want to buy, for 5 years. The original purchase of the house is made by an ethical fund (not just interested in the returns they will get). After 5 years if the house has increased in price you get a percentage of the increase which can be used as the deposit to buy the house.
It's for people who are already renting, who could afford a mortgage but are finding it difficult to raise a deposit.
A quick look at their website and you can see that they are regulated by the Financial Conduct Authority (No. 822295)

csgohan4

hodman-29 wrote: »

OK for the record the two main directors were directors of CurrencyFair - a successful peer-to-peer foreign currency company.
The concept here is that you rent a house you eventually want to buy, for 5 years. The original purchase of the house is made by an ethical fund (not just interested in the returns they will get). After 5 years if the house has increased in price you get a percentage of the increase which can be used as the deposit to buy the house.
It's for people who are already renting, who could afford a mortgage but are finding it difficult to raise a deposit.
A quick look at their website and you can see that they are regulated by the Financial Conduct Authority (No. 822295)

How do they make money? No one lends money for free, ethical or not

AdrianC

What percentage of the increase? 1%? 99%?

They're very coy about details - unless and until you sign up... That's a tad naughty.
https://bomadhomes.com/

And - Hodman - excuse the cynicism but a new user defending a mildly eyebrow-raising financial institution... You can see why people might wonder what your link with them is. So...?

Oh, wait. Sorry. Not many posts, but not a new user. And you've previously "recommended" currencyfair.com on several occasions. So... Having unearthed this thread to defend them, are you in any way related to them?

Goulty1990

I've done some research on these as I am also interested.

They are registered under the FCA, with the registration numbers matching the website for bomad. They are also covered by the rental agreement.

I am in talks with them at the moment but from first thoughts....

They are an investment group looking at making money through first time property buyers. But at the end of the 5 year tenancy, the hope is that the profit margin is of a decent amount, clearing their debt and giving the buyer 30% of this increase. I can only see this being a win win for both parties? I havent found any reviews as they only started up in july 19....

I think this could be a way forward for first time buyers. Nothing is guaranteed, especially with brexit around the corner. But who knows, house prices could increase further. It's a risk, but I'm willing to take it if it means my family can own a home in 5 years time rather than paying a landlord mortgage with no gain at all

AdrianC

Goulty1990 wrote: »

But at the end of the 5 year tenancy, the hope is that the profit margin is of a decent amount, clearing their debt and giving the buyer 30% of this increase. I can only see this being a win win for both parties?

It's a risk, but I'm willing to take it if it means my family can own a home in 5 years time rather than paying a landlord mortgage with no gain at all

Oooh, an actual number! 30% of the increase.

This is what national average house prices have been doing over the last few years...

Over the last five years, you might have hit 10% total growth. So that's 30% of 10% of the property price. 3%. In the meanwhile, you've... been renting.

Let's say that's 3% of a £200k property, so you get £6k. After 60 months rent... Which means £100/mo. Doesn't take the rent to be overpriced by much, does it? Oh, and you're responsible for the maintenance over the period. AND they get the other 70% of the value increase.

csgohan4

Goulty1990 wrote: »

I've done some research on these as I am also interested.

They are registered under the FCA, with the registration numbers matching the website for bomad. They are also covered by the rental agreement.

I am in talks with them at the moment but from first thoughts....

They are an investment group looking at making money through first time property buyers. But at the end of the 5 year tenancy, the hope is that the profit margin is of a decent amount, clearing their debt and giving the buyer 30% of this increase. I can only see this being a win win for both parties? I havent found any reviews as they only started up in july 19....

I think this could be a way forward for first time buyers. Nothing is guaranteed, especially with brexit around the corner. But who knows, house prices could increase further. It's a risk, but I'm willing to take it if it means my family can own a home in 5 years time rather than paying a landlord mortgage with no gain at all

So your first post is to advertise, well done.... Barge pole

jimbog

Goulty1990 wrote: »

They are an investment group looking at making money through first time property buyers...giving the buyer 30% of this increase

Thanks for the warning

Goulty1990

Within their website you get the details of a 30% return on the value of the increase on sale price. Not the property value, just the difference.

Goulty1990

The home owner 'bodman' are responsible for maintaining the property as per any rental agreement. I'm hoping this isn't coming across as defending the company I have known for 24 hours, just rather half glass empty than half glass full approach.

csgohan4

Goulty1990 wrote: »

Within their website you get the details of a 30% return on the value of the increase on sale price. Not the property value, just the difference.

is it ponzi scheme?