Legit?

Awols · 30 January 2020 at 1:31PM

I get emails like this all the time:

Good afternoon,

We have just 9 units remaining at Campbell House, Bradford.

With the project being less than 5 minutes walking distance to the city centre and 0.6 mile to the University, this project has been extremely well received by investors and on course to sell out before completion. It has residential status so can be rented and sold to the entire marketplace.

Along with deducting the stamp duty fee, investors will benefit from an assured 8.5% NET yield for 3 years which amounts to a total rental income of £12,495 from an investment of just £49,000. Furniture packs are also free of charge with each apartment, making this the perfect armchair investment.

£5,000 To Reserve
Handover April 2020
Free Furniture Pack
Priced at Just £49,000

Campbell House in Bradford into 52 student pods. A short walk from Bradford College Campus and just 0.6 miles away is the University of Bradford Campus, it is ideally located.

Prices start at £49,000 for a fully furnished en suite room and have an assured NET return of 8.5% for 3 years. Accommodation comprises of modern living/bedroom pods with private en-suite shower rooms. The development will also create communal common rooms, games rooms and large kitchen/dining areas throughout.

Bradford

Bradford’s city centre is experiencing an extensive makeover, with £525 million invested in public spaces in 2014 alone, as well as improved interconnectivity and restored historic architecture.

Boasting an economy worth over £8.3 billion, it is the fourth largest metropolitan district in the UK and the fifth fastest growing city outside of London. The rejuvenation of public spaces in the city and the arrival of the prestigious £260m Westfield Broadway Shopping Centre have helped transform Bradford and attract major investment and business opportunities.

Situated halfway between London and Edinburgh and lying perfectly midway between the Humber and Liverpool ports, Bradford’s position alongside the M62 and close to the M1, makes it ideally positioned to reach by road, rail or air. In recent years the city has become an increasingly popular choice for purchases looking for a healthier return on their money and it is now seen by many as a far more attractive option than the more expensive and saturated cities of London, Manchester, Leeds and Liverpool.

Campbell House is located 1.2 miles from the city centre.

Key Highlights

Fully Furnished en-suites from £49,000
8.5% NET return for 3 years
RESIDENTIAL STATUS – Can be rented and sold to the entire marketplace
Completion Q1 2020
Refurbishment of existing building – Not ‘off plan’
Only 52 pods in total
Excellent Location
Trusted experienced developer with 10 year track record
Bradford University enrols 11,000 students annually - Shortage of quality student accommodation

Specification:

Numerous communal kitchen areas
Common rooms
Gym for residents
Games room
Additionally, all bills and Wifi are included in the rent.

For more information or to check the latest availability, please feel free to contact us.

Kind regards,

Tracy Empson

Emerging Developments - UK Division

Telephone: +44 (0)203 808 9825 I Direct: +44 (0)7710 270600

Are these things legit or not? Some of them are very attractive - 8% interest for 5 years and guaranted buyback. What are the risks?

lozzy1965 · 30 January 2020 at 1:36PM

The bottom of the first page of their website:

"Emerging Developments SL act as Agent for developers and all products offered to purchasers are strictly on a non-advised sales basis only. The information provided by Emerging Developments SL Limited on behalf of developers is general information only. Purchasers are strongly advised to carry out their own financial and legal assessment of any property offered prior to making any commitment to purchase. Emerging Developments SL is NOT authorised and regulated by the Financial Conduct Authority (FCA) and as such is NOT permitted to offer financial advice about investments, be they regulated or unregulated. Emerging Developments SL does not offer Financial Advice. In case of queries or doubt you should consult an FCA regulated Independent Financial Advisor (IFA)."

So I wouldn't touch them.

jamei305 · 30 January 2020 at 3:16PM

Well the first supposed scheme to renovate this building, formerly Colonnade House, didn't go too well: https://www.thetelegraphandargus.co.uk/news/14695945.international-investigation-begins-as-firm-creating-flats-in-bradford-goes-bust-owing-millions-of-pounds/

The risks of this one include the company going into administration and you losing all your money.

PRAISETHESUN · 30 January 2020 at 3:17PM

Plenty of horror stories with things like these. The "guaranteed" buyback isn't worth anything, as if they decide to not honour it, you'll have to take them to court to enforce it... and if they have no money when it comes to it, then you'll not be able to recover your costs anyway. Avoid them like the plague.

Malthusian · 30 January 2020 at 3:22PM

Awols wrote: »

Are these things legit or not?

Under the current regulatory system they are indeed considered legitimate. They will still be legitimate if you lose all of your money.

Some of them are very attractive - 8% interest for 5 years and guaranted buyback.

There is nothing particularly attractive about being offered 8%pa for an ultra-high-risk investment in an obscure micro-cap property company that could lose 100% of your money.

Notepad_Phil · 31 January 2020 at 12:01PM

Awols wrote: »

I get emails like this all the time:

I'd guess that whilst looking for the best places to put your hard-earned money that you've put your email/phone number down on one too many websites and now your details have been sold on to various companies of perhaps various legality.

If my guess is correct then I'd advise that you stop giving your details out, hopefully these emails will then eventually stop - but that could be a very long time, so in the meantime just make sure you ignore them so that you don't caught out by some scammer/salesman out there who eventually gets you to fall for their spiel.

Emails are meant to have an Unsubscribe link at the bottom, but if the email is from a dodgy company then all that clicking that link will do is to let them know that the email address has a real person behind it, in which case clicking that link would be the last thing you'd want to do.

In the future maybe look at sites such as MSE for your research, and consider having a separate email address if you do have to put an email address down on sites to get further information from them. I also put a dummy name so that if I do get emails from an unknown company then I've some idea of how they got my name.

badger09 · 31 January 2020 at 12:51PM

To add to what Notepad Phil says, you are probably now on a 'suckers list' - no offence intended. Expect to receive similar offers from a variety of sources.

No reputable company would cold call/email/write to you offering investment opportunities.

AnotherJoe · 31 January 2020 at 1:01PM

Awols wrote: »

I get emails like this all the time:

Nuff said. Steer well clear.

Reaper · 31 January 2020 at 1:19PM

Something looks very odd.

As far as I can see there are lots of introducers (salesmen) pitching this. It looks like the company actually doing the work is "The Investment Room" (somebody correct me if I am wrong).

However The Investment Room is and always has been a dormant company with just £100 in the bank.
https://beta.companieshouse.gov.uk/company/10196744/filing-history

That makes it hard to see how they could have possibly completed the many past projects they claim to have done on their web site.

Or am I missing something?