Invest into Property

fatboydaz

Hi everyone,

I’m reaching out to see if anyone has experience investing with property developers, particularly those you might find on YouTube like the Property Couple.

We were recently presented with an investment opportunity where we could potentially earn an 8% return on £150k, with payments returned to us monthly. This has got us thinking because we currently have £100k in Premium Bonds and £50k in a savings account. The idea is that by investing this sum, the monthly returns could help pay our rent, which is quite appealing. This would then allow us to save around £2k a month.

We’re still in the early stages of exploring this option, so I’d love to hear from anyone who has done something similar. What were your experiences? Did everything go as expected? Were there any red flags or things you wish you’d known beforehand?

Looking forward to your insights! Thanks in advance.

ColdIron

This recent post may be worth a read

https://forums.moneysavingexpert.com/discussion/6550621/landal-belvedere-go-into-administration/p1

No FSCS protection and the potential for 100% loss of capital. Rather you than me

Bostonerimus1

If you want to invest in property keep it to paying your own mortgage and REITs.

The scheme you describe has all the features of a scam. You probably won't be investing, you'll be giving your money to crooks.

FOOL, MONEY, PARTED etc.

Ayr_Rage

DANGER Will Robinson, DANGER !

https://www.google.com/search?gs_ssp=eJzj4tVP1zc0TE-PLzEtzyg3YPQSSUnMS08tUijPzMlRKMpPyswrzs8DAON2DM0&q=danger+will+robinson&oq=danger+will&gs_lcrp=EgZjaHJvbWUqBwgBEC4YgAQyCggAEAAY4wIYgAQyBwgBEC4YgAQyBwgCEAAYgAQyBggDEEUYOTIHCAQQABiABDIHCAUQABiABDIHCAYQLhiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABNIBCDY1MDZqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8#fpstate=ive&vld=cid:27069c0e,vid:OWwOJlOI1nU,st:0

Aretnap

How exactly were you "presented" with this "opportunity"? If you were contacted out of the blue by a company that you have not had previous dealings with, this in itself is about as big a red flag as you can get because respectable, regulated investment companies are explicitly prohibited from doing this, so almost by definition you would be dealing with the shady end of the market, and the "opportunity" will be extremely high risk at best, or an outright Ponzi scam at worst.

NB, If you were not cold-called it doesn't follow that the investment is safe. Nothing promising an 8% return is safe, apart from a handful of loss-leading savings accounts with proper banks  And there are a couple of other things that sound like red flags in your post. But being cold-called (or cold-Emailed etc) about an investment opportunity is about the biggest, reddest flag you can get (up there with an advert on social media).

Albermarle

We were recently presented with an investment opportunity where we could potentially earn an 8% return on £150k, with payments returned to us monthly. This has got us thinking because we currently have £100k in Premium Bonds and £50k in a savings account.

The key point is that anything that offers a return above savings accounts must come with some risk.
If you accept that then you would be better off investing in regulated investment funds, via a Stocks and shares ISA or by adding more to your pension, rather than these property schemes.

Aretnap

fatboydaz said:

We’re still in the early stages of exploring this option, so I’d love to hear from anyone who has done something similar. What were your experiences? Did everything go as expected? Were there any red flags or things you wish you’d known beforehand?

Not saying that the thing that you're looking at is a Ponzi scheme (is that OK, lawyers?), but if it WERE a Ponzi scheme, the very nature of Ponzi schemes is that they pay out as expected for a year or two, then the supply of new investors dries up, the company behind them goes bust, and then then they stop paying out.

So it is fairly pointless asking for the experience of people who have invested in the same scheme. The fact that the company still exists and is looking for new investors means that it hasn't collapsed... yet. It doesn't mean that it won't collapse tomorrow. And therefore there will doubtless be some investors who have been paid their 8% return and are very happy... so far. It doesn't mean that they'll continue to recieve their 8% return, or that they'll be able to withdraw their money or sell their investment when they want out.

Eyeful

Using a simple rule of thumb

1. Investment =  the possibility of losing all your money.  So how much risk is there?
2. FTSE 100 yield = 3.84%.
3. Risk ratio = 8% / 3.84% = 2.35 

When I see a Risk ratio = 2, I always think very high risk or scam, either case little to no chance of getting money back. 

wmb194

fatboydaz said:

Hi everyone,

I’m reaching out to see if anyone has experience investing with property developers, particularly those you might find on YouTube like the Property Couple.

We were recently presented with an investment opportunity where we could potentially earn an 8% return on £150k, with payments returned to us monthly. This has got us thinking because we currently have £100k in Premium Bonds and £50k in a savings account. The idea is that by investing this sum, the monthly returns could help pay our rent, which is quite appealing. This would then allow us to save around £2k a month.

We’re still in the early stages of exploring this option, so I’d love to hear from anyone who has done something similar. What were your experiences? Did everything go as expected? Were there any red flags or things you wish you’d known beforehand?

Looking forward to your insights! Thanks in advance.

Don't do it, that's a terrible idea. Stick to mainstream investments. Even if legitimate, it's also an insanely big jump up the risk scale from 1 to 11.

Eyeful

If you do want to do investing, this my be of interest to you.
1. Watch this: https://www.kroijer.com/
2. Then consider a passive low cost Global Multi Asset Fund with a share/bond split you are comfortable with.
Example:  https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced
3. Invest via a pension or stocks & shares ISA.

Eyeful

Red Flags if the "opportunity"  came though
1. Cold call
2. Email
3. Social Media (example Facebook)
4. Friend ,family member, stranger telling you about this opportunity they found.
also
(a) If the opportunity found you, without you going looking for it.
(b) If they do not allow you time to think about it or to do due diligence.
(c). They want or suggest that you use their lawyers/ solicitors instead of your own.

Remember:-
Anything to do with money has risk attached, its just the size & type of risk that changes.
A guarantee is only as good as the company backing it. Some people have found out too late their guarantee is not worth the paper its printed on!