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  • FIRST POST
    • pika_doh9
    • By pika_doh9 7th Dec 17, 4:10 AM
    • 8Posts
    • 3Thanks
    pika_doh9
    Car Park Investment - Is it a Scam?
    • #1
    • 7th Dec 17, 4:10 AM
    Car Park Investment - Is it a Scam? 7th Dec 17 at 4:10 AM
    I bought a car park space at Gatwick airport in March 2016 for £25,000 with a company called Park first. They promised a guaranteed 8% rental return for 2 years.

    I just got the paperwork with details about their buy-back scheme.

    Turns out after 2 years they offer to buy the parking space back from you for £21,840. They deduct the £4000 (8% of £25,000 over 2 years) and give you £840 interest (2% of £21,000 over 2 years). This means I did not make a rental income, they have simply given me back my own money and the 2% interest isn’t even on the original investment.

    I then have to pay solicitor fees which, if more than £840, means I lose money from the investment! Especially with tax on the ‘rental return.’

    I was so outraged from the false advertising of 8% rental return! How can they justify giving me back my own money.

    They then tried to convince me to sign up to a lifetime lease where after the initial 2 year period has finished, I have to wait another 3 years to sell it back to them or I have the option to sell it to the open market at any time. I was informed that they may or may not buy it back after 5 years, and if they do, then it may or may not be at the original value of £25,000 - but on the plus side I get to keep all the rental return (so the £4000 + whatever % interest I get over the additional 3 years - assuming someone actually parks in the space).

    If I sell it back on the open market then they take 5% fee and I pay solicitor fees. So assuming they can only sell it back for £25,000 - they get £1250 and I may only get an additional £1000 in the end after all the fees - so no 8% rental yield.

    I also have to mention that if I choose to sell it back, it is a 12 month process and I get no payments or interest in that time.

    So in summary I lose money if I sell it back to them after 2 years. I potentially lose money if I sell it back to them after 5 years (because they might again offer to buy it back and deduct what they have paid so far) and I lose money if they sell it back to the open market (assuming I cannot get it sold for £25,000 minimum).

    I hope I have explained it well - have I been a fool to invest in a parking space? It looks to me like it does not offer any return.
Page 5
    • Malthusian
    • By Malthusian 12th Feb 19, 9:30 AM
    • 5,282 Posts
    • 8,715 Thanks
    Malthusian
    This goes well beyond conveyancing. If you are sure you want to go down the legal route you need a lawyer who knows how to pursue a delinquent debtor through the UK courts.

    It is highly likely that if you do so you will be throwing good money after bad.
    • Katiewhy2
    • By Katiewhy2 12th Feb 19, 4:25 PM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    I think there is someone who is trying to set up a group action- would you be interested in that?
    • spartan91
    • By spartan91 14th Feb 19, 12:24 AM
    • 3 Posts
    • 0 Thanks
    spartan91
    Car Park Investment - Is it a scam?
    Yes, the group action is on its way but only at a preliminary stage.
    • Katiewhy2
    • By Katiewhy2 14th Feb 19, 8:12 AM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    I think group action is the way forward, if they are not repaid by their long shot date- which for most is late summer this year.
    I wonder why, when the FSA were so involved, they seem to have washed their hands of it all- I'm still hoping we will all get paid!
    • Shashy
    • By Shashy 14th Feb 19, 9:25 AM
    • 115 Posts
    • 142 Thanks
    Shashy
    I'm still hoping we will all get paid!
    Originally posted by Katiewhy2
    You won't.

    It may be best to start coming to terms with that.
    • AnotherJoe
    • By AnotherJoe 14th Feb 19, 9:38 AM
    • 12,549 Posts
    • 14,722 Thanks
    AnotherJoe
    I think group action is the way forward, if they are not repaid by their long shot date- which for most is late summer this year.
    I wonder why, when the FSA were so involved, they seem to have washed their hands of it all- I'm still hoping we will all get paid!
    Originally posted by Katiewhy2
    My granddaughter likes unicorns. Sadly for you she's got more chance of riding on a real one than you do of getting your money back.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • dunstonh
    • By dunstonh 14th Feb 19, 10:03 AM
    • 97,058 Posts
    • 65,047 Thanks
    dunstonh
    I wonder why, when the FSA were so involved, they seem to have washed their hands of it all- I'm still hoping we will all get paid!
    The Food Standards Agency were not involved

    The FCA covers regulated activity. Park First drifted into an area of regulation but agreed to stop and give investors two option. Return of money or the lifetime leaseback. That satisfied the FCA (neither option falling under regulation). The rest of it is an unregulated business venture and nothing to do with the FCA.

    I'm still hoping we will all get paid!
    "hopefully", that hope is at the same level you wish for when hoping to win the lottery. Yes you can dream but you really should know by now that you wont be getting your money back and the best you can hope for is pennies in the pound.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Katiewhy2
    • By Katiewhy2 14th Feb 19, 12:20 PM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    How bloody depressing- Is there anything we can do?
    Is it worth contacting the FCA again (you knew what I meant!!!)
    • Shashy
    • By Shashy 14th Feb 19, 2:04 PM
    • 115 Posts
    • 142 Thanks
    Shashy
    How bloody depressing- Is there anything we can do?
    Originally posted by Katiewhy2
    Yep - learn from it, and then try to forget about it and move on with your life. It'll be better for your sanity.
    • Katiewhy2
    • By Katiewhy2 14th Feb 19, 2:50 PM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    My sanity is really suffering! hard to move on though when I've lost so much
    • webjaved
    • By webjaved 14th Feb 19, 3:13 PM
    • 66 Posts
    • 84 Thanks
    webjaved
    My sanity is really suffering! hard to move on though when I've lost so much
    Originally posted by Katiewhy2
    It'd be hard for anyone to move on without feeling that you've given up, but the advice from those on here is very good advice and one that would benefit you.

    There has to be a point where you call it a day.
    Save £12k in 2019 #154 - £3,100/£12k
    • JohnRo
    • By JohnRo 14th Feb 19, 3:16 PM
    • 2,680 Posts
    • 2,509 Thanks
    JohnRo
    My sanity is really suffering! hard to move on though when I've lost so much
    Originally posted by Katiewhy2
    You have to accept the reality of the situation you are in and that Park First are scammers, that the money you gave them is gone and that in the unlikely event anything is ever returned, it will be scant consolation.

    I suspect many here have been there to varying degrees, not on the more extreme end though.

    You must forgive yourself and learn, start by trying to properly understand what it was that took you down this path, acknowledge the ugly truth and then adjust your attitude in such a way that you will never let it happen again.

    At risk of sounding cringy, darkness cannot drive out darkness; only light can do that...
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Katiewhy2
    • By Katiewhy2 14th Feb 19, 4:36 PM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    Thank you all! My glass is always half full- I'm so hopeful I get my money back in 6 months time.
    • AnotherJoe
    • By AnotherJoe 14th Feb 19, 9:23 PM
    • 12,549 Posts
    • 14,722 Thanks
    AnotherJoe
    My sanity is really suffering! hard to move on though when I've lost so much
    Originally posted by Katiewhy2
    You unfortunately seem to havea predilection for putting your money into out and out scams. I suggest you find a good IFA and have them manage what is left of your money in case you chase more unlikely prospect to try and recoup your losses.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • eskbanker
    • By eskbanker 15th Feb 19, 12:40 AM
    • 9,469 Posts
    • 11,101 Thanks
    eskbanker
    My glass is always half full
    Originally posted by Katiewhy2
    That phrase is normally said as if it's a good trait and one to be proud of, but if optimism translates into a tendency to be credulous then it's not a particularly helpful characteristic when choosing investments....
    • Pruksa
    • By Pruksa 15th Feb 19, 3:58 AM
    • 2 Posts
    • 0 Thanks
    Pruksa
    Yes, Katiewhy2. I'd like to join the action group.


    How should I proceed please ?


    Thanks.
    • Katiewhy2
    • By Katiewhy2 15th Feb 19, 8:03 AM
    • 41 Posts
    • 8 Thanks
    Katiewhy2
    Can you private message me please with your email address?
    • gardner1
    • By gardner1 15th Feb 19, 11:37 AM
    • 2,952 Posts
    • 4,506 Thanks
    gardner1
    I'm curious to how people fall for the buy a car park space scam at an airport/football ground/shopping centre........But then again the son of my mothers best friend fell for the Nigerian investment email years ago he was a civil servant and his father also thought it was a good idea.It also came to light he fell for a few other dodgy investment scams,so as long as there are gullible/stupid people around the buy a car park space will be around for a long time
    Last edited by gardner1; 15-02-2019 at 1:28 PM.
    • Malthusian
    • By Malthusian 15th Feb 19, 12:46 PM
    • 5,282 Posts
    • 8,715 Thanks
    Malthusian
    I'm curious to how people fall for the buy a car park space scam at an airport/football ground/shopping centre...
    Originally posted by gardner1
    Same way they fall victim to muggings, only different muscles are involved.
    • gardner1
    • By gardner1 15th Feb 19, 1:30 PM
    • 2,952 Posts
    • 4,506 Thanks
    gardner1
    Same way they fall victim to muggings, only different muscles are involved.
    Originally posted by Malthusian
    No sorry disagree there......as the old saying goes "If something seems too good to be true".......AVOID
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