Buy to Let Schemes with Guaranteed yield, are they any good?

matt78uk

ProDave said:

matt78uk said:

Thanks everyone for the quick replies!


You have put my mind at rest when it comes to that kind of buy to let 👍

If I wanted to invest and have some cash flow from it in the meantime (£120000) what would you suggest, dividend paying stocks? 

Matt

If you want to invest in buy to let, buy yourself a real property and let it yourself.  You may not get the yield you want, but you will have a real tangible asset.

I am not sure I would want to get into managing the property, particularly as I am planning to move back to Italy within the next 5 years and it would be a nightmare to manage from there.
I suppose at the moment then best choice would be to go back to good old Vanguard...

matt78uk

peterhjohnson said:

If for whatever reason, the scheme is unable to find a paying tenant for your property, you are not going to get paid. Even if the T&C guarantee to pay, they won't because they will run out of money and go bust.   

They say they have a £500000 fund to deal with it, but again there are probably a few pages of small print to go through.

Murphybear

matt78uk said:

TripleH said:

The fact that when you click on the link, the property cannot be found says volumes.

That's probably my fault, I have omitted the ".html" part.
https://www.pureinvestor.co.uk/properties/united-kingdom/greater-manchester/manchester/x1-cheltenham-place.html

I clicked on the link and got

Page Not Found

We're sorry but the page you have requested could not be found.

Mutton_Geoff

matt78uk said:

Thanks everyone for the quick replies!


You have put my mind at rest when it comes to that kind of buy to let 👍

If I wanted to invest and have some cash flow from it in the meantime (£120000) what would you suggest, dividend paying stocks? 

Matt

It all depends when you need the money back. You don't need to limit yourself to dividend paying stocks, after all the value of them could go down by more than the divi.

If you need the money when you move back to Italy, I'd say 5 years is too short a term for investing. Stick the money in high interest savings accounts (max £85k per bank).

justwhat

matt78uk said:

ProDave said:

matt78uk said:

Thanks everyone for the quick replies!


You have put my mind at rest when it comes to that kind of buy to let 👍

If I wanted to invest and have some cash flow from it in the meantime (£120000) what would you suggest, dividend paying stocks? 

Matt

If you want to invest in buy to let, buy yourself a real property and let it yourself.  You may not get the yield you want, but you will have a real tangible asset.

I am not sure I would want to get into managing the property, particularly as I am planning to move back to Italy within the next 5 years and it would be a nightmare to manage from there.
I suppose at the moment then best choice would be to go back to good old Vanguard...

You can use an agency , but that has its own issues. They usually work fine until there is a problem lol 

TripleH

matt78uk said:

TripleH said:

The fact that when you click on the link, the property cannot be found says volumes.

That's probably my fault, I have omitted the ".html" part.
https://www.pureinvestor.co.uk/properties/united-kingdom/greater-manchester/manchester/x1-cheltenham-place.html

I got the same display as posted by @Murphybear

With these schemes, the devil is in the small print as if there is a guarantee it would be limited or your income would be fixed to the initial amount, so in 10 years time your return could be based on what you paid not it's worth, there are many ways it could go wrong.

eddddy

Murphybear said:

matt78uk said:

TripleH said:

The fact that when you click on the link, the property cannot be found says volumes.

That's probably my fault, I have omitted the ".html" part.
https://www.pureinvestor.co.uk/properties/united-kingdom/greater-manchester/manchester/x1-cheltenham-place.html

I clicked on the link and got

Page Not Found

We're sorry but the page you have requested could not be found.

Try:

https://www.pureinvestor.co.uk/properties/united-kingdom/greater-manchester/manchester/x1-cheltenham-place

Mutton_Geoff

justwhat said:

matt78uk said:

ProDave said:

matt78uk said:

Thanks everyone for the quick replies!


You have put my mind at rest when it comes to that kind of buy to let 👍

If I wanted to invest and have some cash flow from it in the meantime (£120000) what would you suggest, dividend paying stocks? 

Matt

If you want to invest in buy to let, buy yourself a real property and let it yourself.  You may not get the yield you want, but you will have a real tangible asset.

I am not sure I would want to get into managing the property, particularly as I am planning to move back to Italy within the next 5 years and it would be a nightmare to manage from there.
I suppose at the moment then best choice would be to go back to good old Vanguard...

You can use an agency , but that has its own issues. They usually work fine until there is a problem lol 

I assume the OP was talking about Vanguard investments, not Vanguard lettings agents.

TripleH

Thanks @Eddddy.

Manchester seems swamped with companies building 'executive lets' at the moment. There is a lot of competition and as a result incentives need to be provided to attract residents. It feels almost like a bubble waiting to pop. But thatvis just my thought and experience.

matt78uk

TripleH said:

Thanks @Eddddy.

Manchester seems swamped with companies building 'executive lets' at the moment. There is a lot of competition and as a result incentives need to be provided to attract residents. It feels almost like a bubble waiting to pop. But thatvis just my thought and experience.

I thought that too, there are a lot of other companies that are building student-focused accommodation and if the growth in the number of students doesn't match the expectation it could be a problem.
Maybe I should wait until I find the right property and then find a reliable agent.

Many Thanks