Property investment options - mortgage, cashbuy, crowdfnding? which?

csgohan4

OP is wanting people to agree with him that it's the next best thing since sliced bread.


Ultimately OP it's your money and you need to balance the risks and rewards yourself. You could get an IFA to advise you on your options

quotememiserable

tom9980 wrote: »

It remains to be seen how well P2P lending will do during a recession.

You know those scams where investors are told they will get 8% returns on their cash investment? they tend to pay for a year or two then try and get the investor to invest more or recommend them to their friends, they then go bust leaving the investor out of pocket by 80% of their initial investment.

I am amazed you cannot see these investments are no different.

I'm amazed you can't see that these investment are very much different. There's on ponzi here, these are well run businesses. If course there's more risk than 1.5% in the building society, but I think the returns are well measured against the risk.

ileven1225

i know people make profits using crowd funding, i also know people lose, annual return always has strong link with associated risk.



The post is to get people to share their experience, I also need some guidance as well.

ileven1225

quotememiserable wrote: »

I'm amazed you can't see that these investment are very much different. There's on ponzi here, these are well run businesses. If course there's more risk than 1.5% in the building society, but I think the returns are well measured against the risk.

I agree, return and risk are well linked

AnotherJoe

quotememiserable wrote: »

I'm amazed you can't see that these investment are very much different. There's on ponzi here, these are well run businesses. If course there's more risk than 1.5% in the building society, but I think the returns are well measured against the risk.

Based on the record of previous "investments" posted about here, 12% "interest" rates relates to a risk level of 99% certainty you'll lose all your money after a couple years of payments.
No one needs to offer 12% if its genuinely low risk.

ileven1225

AnotherJoe wrote: »

Based on the record of previous "investments" posted about here, 12% "interest" rates relates to a risk level of 99% certainty you'll lose all your money after a couple years of payments.
No one needs to offer 12% if its genuinely low risk.

You might need to read it carefully that i gave a range and never said you can get 12% annual return. If you read more information on crowd funding online, 12% annual return is very high and i do not normally see this figure. We are bit off topic here and i suggest everyone to focus on balanced view other than giving extremes.

AnotherJoe

ileven1225 wrote: »

You might need to read it carefully that i gave a range and never said you can get 12% annual return. If you read more information on crowd funding online, 12% annual return is very high and i do not normally see this figure. We are bit off topic here and i suggest everyone to focus on balanced view other than giving extremes.

I was just going off Sourced Capitals website, not any figure you gave.
It is mentioned 11 times on their landing page after all.
To reiterate since i really think you have a comprehension problem here
No one needs to offer 12% if its genuinely low risk.

buggy_boy

Remember though the biggest mistake people make in investing is looking at past performance (especially very short time scales) and believing that is a good indicator for future performance.

A car that has driven 500 miles without needing to refuel does not mean it is likely to go another 500 miles without refuelling, in fact it is often the opposite.

AnotherJoe

Indeed, if you look at some of the past posts on what turned out to be failed / catastrophic / fraudulent investments of this sort there's usually a few posters at the start,often most likely not shills but deluded, saying things like "well ive been paid my interest on time for the last year" or whatever. There's one poster that says this and then says "I'm off away from all this negativity"
There's a quote upthread

Sourced Capital have 100% repayment rate.

And that will be true. Until they don't.

MobileSaver

ileven1225 wrote: »

If you read more information on crowd funding online, 12% annual return is very high and i do not normally see this figure.

ileven1225 wrote: »

i know people make profits using crowd funding, i also know people lose, ... The post is to get people to share their experience, I also need some guidance as well.

I've seen quite a few posts on Property Tribes expressing concerns about Property Crowdfunding; in some cases people have lost their entire "investment."

Here's one example where everything was fine to start with but then updates from the developer stopped. The same developer then said they'd be raising more funds via crowdfunding offering 15% return... (No-one seems to have lost anything with this one yet but there don't seem to be any updates that all is well either.)

Nicole Bremner / East 8 / SimpleCrowdfunding

fixed return of 15% on a near completed project

My advice would be to tread very, very carefully and obviously do as much due diligence as you can. I think the days of "easy money" from such projects are over and the numerous risks involved mean that savvy investors are no longer interested hence the move to amateur investors/gamblers via crowdfunding.