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

AnotherJoe

MobileSaver wrote: »

My advice would be to tread very, very carefully and obviously do as much due diligence as you can.

And once you've done that still don't even consider putting your money into these schemes which vary between ultra high risk almost certain total loss and frauds. Same end result.
Or why not simply cut out the due diligence* and just steer well clear ?

* and how effective is that when most people wouldn't be able to do it anyway, certainly those that consider these schemes couldnt.

tom9980

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.

We haven't seen how P2P lending do during a recession yet? it remains to be seen how well these businesses are run until something goes wrong. Until that happens it is near impossible for us to judge if the risk profiles have been done correctly let alone if the returns match up with that risk.

Do remember patisserie Valerie and Tesco have had recent accounting scandals so why cant relatively new unknown companies in the P2P industry not also have a few hidden skeletons in the closet?

I should point out most of my negativity is directed towards property crowdfunding and student pods that really need stamping out with regulation.

MobileSaver

tom9980 wrote: »

We haven't seen how P2P lending do during a recession yet? it remains to be seen how well these businesses are run until something goes wrong.

There are numerous examples of these schemes not going to plan while house prices have been rising so, yes, how they'll deal with a flat-line or downturn should be a huge concern.