buy-to-let holiday Lodge investment will deliver 8% NET income per annum

Jijo883

Hi All,

I was looking for investment ideas and came across this investment proposal (below)
Any body with previous experience on this sort of investment and any thoughts on what you think of this type of investment?

Thanks in advance 

buy-to-let holiday Lodge investment will deliver 8% NET income per annum
Its by advantage investments and landal - belvedere.

I can't post links yet.

pbartlett

like this?
https://www.primelocation.com/new-homes/details/58283727/

csgohan4

Scam, looks too good to be true. 

How can you guarantee income when the letting industry at present is unstable in parts of the country. London rents are falling as people are working from home and moving out of london.  

Where did you see this advert? If it's on social media, please ignore it

Why not stick to traditional investment platforms with S+S ISA, Pensions, don't be greedy and go for the highest number you find because you will be disappointed. 

coyrls

It's easy to provide 8% income for some time, if you are prepared to forget about the safety of your original capital.

Zanderman

Whether or not the 8% is realistic - which it probably isn't - the thing to be most wary of is re-sale value. 
Making 8% per year makes no sense if you can't sell the underlying asset except at a loss.
And it will be at a loss, possibly a very big loss. 
Holiday homes don't increase in value, they lose value, every year.  Often rather fast.
And the park owner may restrict how and when you can sell.
So you will lose money, inevitably.
Don't do it!

Alice_Holt

Very, very unlikely that you will ever get your initial investment back 
I wouldn't place much reliance on a continuing 8% return after a year or so. 
Far riskier than the most volatile of equity funds.

steampowered

Lots of people invested in holiday homes, caravans and the like and lost everything they invested. 

You only need to do a search of these forums to find out people who that happened to.

It's extremely high risk. The risk in no way matches the reward. 

If you would like to achieve an investment return of around 8% per annum, the easiest way of doing that is to start investing in stocks and shares, as the major stock markets have returned on average 7.5% per year over the past 10 years and the past 50 years. At least if you choose a diversified investment fund you can never lose your entire investment.

Bravepants

Also, you would have to pay annual site fees, the lodge itself may depreciate in value, and I believe there would be a clause in the contract with the site owner that you would have to replace/update the lodge every so many years to keep the overall site looking good.

I looked at similar "investments" a few years ago and I decided against them.

If I were you, I would move on.  

Stocks and Shares ISA is my only investment, and I'm quite happy with it.

Albermarle

Assuming it is not a scam ( which it might be ) then can you use it yourself as a holiday home for many weeks of the year .?
Clearly as said above these things are not good investments due to extra fees , depreciation etc but if it is a nice home in a nice location and you get to use it regularly for 'free' then it makes it a different proposition ( but read all the small print very carefully)

Thrugelmir

Wonder if the OP will ever return ? 

Browntoa

Or will their alternative "1 post wonder" user id come back to say how wonderful and legitimate it all is