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Too good to be true?

2»

Comments

  • london21
    london21 Posts: 2,196 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    If it sounds too good to be true, it probably is. 

    Stick with 1 post.
  • Slinky
    Slinky Posts: 11,232 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Sounds like an idea dreamt up down the pub over Christmas.

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  • steampowered
    steampowered Posts: 6,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Question: With this sort of arrangement, what would be in it for the company?

    I'm assuming they aren't a charity. Their business won't be run for the benefit of its customers that's for sure. 
  • deannagone
    deannagone Posts: 1,114 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    edited 4 January 2022 at 3:41AM
    I came across a couple of similar schemes when I was really desperate to find a private rental.  When I made enquiries with one of the companies, the 'deposit' you had to pay to move in didn't seem to be regarded as a rental deposit.., it was regarded as an investment.  So no sureties you would get it back if the deal went wrong for some reason.  The 'deposit' was many thousands, so much much more than you'd normally pay for a rental, at the time.  The rent was expensive too.  And you would be responsible for any repairs on moving in.

    The major difference between an official shared ownership scheme and this scheme was although you were paying a huge deposit, be responsible for repairs, and pay a high rent which would cover a mortgage very easily, you wouldn't own any portion of the property until you bought it.  So a lot of expensive risks.

    When I tried to get more details, I found that although their advert had photos of one property, they didn't actually own any at all, certainly not the pictured property. Or any proof of ever owning any in the past.  The adverts did stop appearing for both companies within a couple of months so I assume they quickly disappeared.

    They did talk about having time to arrange your finances to buy the property but only vaguely, no details.  No paperwork was shown in spite of asking for this. 

    I decided it was a scam, with too many loopholes to make it worth going for.  I was desperate for a rental property, but not that desperate. It could be that the adverts were placed by someone testing the market.., and realised people weren't as stupid as they thought initially.

  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    I don't like the sound of it. As IamWood says, there's no such thing as a free lunch. 

    It reminds me of those Equity Release plans aimed at those who are mortgage-free. I don't like those either.

    I totally agree with your first thoughts of it being a scam. And I wouldn't touch it with a barge (or any other kind of) pole.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • badger09
    badger09 Posts: 11,686 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    robatwork said:
    To answer your question: Yes.

    Wow there are a lot of companies based at this address
    12,101 Companies in EC2A 4NE, Paul Street, London - Endole

    Incorporated 2 business days ago and run by a 26 year old who according to Linkedin has had 9 jobs. 

    Pass the barge pole. 
    Not surprising really as that address offers a 'Virtual Office', amongst many other things. Doesn't necessarily mean every co registered there is a scam, but its definitely in bargepole territory for me.

    https://www.tide.co/company-registration/virtual-office-address/
  • It’s a proptech start-up with Entrepreneur First, which is a reputable accelerator program, so calling it a scam seems a bit of stretch, but cautiousness seems reasonable, they are less than 2 month old, so probably havent done any purchases yet but marketing themselves as if already operational.
    didnt look into how the math and economics add up so cant comment on that rn
  • TripleH
    TripleH Posts: 3,188 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    The question is how the organiser makes their money from such a scheme and how the purchase of the property is funded.
    My concern is that this 'innovative' scheme relies on an expectation that certain market conditions are maintained and if they are not, then things could come crashing down quickly for all.
    The big question is who the financial backer is for this scheme?
    May you find your sister soon Helli.
    Sleep well.
  • FreeBear
    FreeBear Posts: 18,306 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic

    I was sure I'd heard of this type of thing recently... https://forums.moneysavingexpert.com/discussion/5963942/anyone-heard-of-bomad-homes/

    Any language construct that forces such insanity in this case should be abandoned without regrets. –
    Erik Aronesty, 2014

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
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