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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 3
    • TheTracker
    • By TheTracker 17th Feb 18, 4:09 PM
    • 1,213 Posts
    • 1,198 Thanks
    TheTracker
    I bought a car park space at Gatwick airport in March 2016 for £25,000
    Originally posted by pika_doh9
    I once had to park there for 3 weeks in 2016 when I needed to travel urgently.

    The bill came to a similar amount. Or felt like it.

    Someone is making a lot of money from car parks. It is not you.


    As a rule of thumb, if you ever finding yourself asking "Is it it a scam?" about almost anything in life, it doesn't matter whether it is or isn't a scam. Just don't go anywhere near it.
    Last edited by TheTracker; 17-02-2018 at 4:12 PM.
    • TBC15
    • By TBC15 17th Feb 18, 5:57 PM
    • 536 Posts
    • 276 Thanks
    TBC15
    IT IS A SCAM, can we please move on.
    • Glen Clark
    • By Glen Clark 17th Feb 18, 7:34 PM
    • 4,207 Posts
    • 3,224 Thanks
    Glen Clark
    IT IS A SCAM, can we please move on.
    Originally posted by TBC15
    You can move on whenever you like.
    Those who are still interested enough to keep reading and contributing to the thread can do so too
    Then when everyone has had enough the thread will sink into the archives.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • dealer wins
    • By dealer wins 17th Feb 18, 9:18 PM
    • 5,918 Posts
    • 11,339 Thanks
    dealer wins
    I agree with TBC15
    Choose life
    • Glen Clark
    • By Glen Clark 18th Feb 18, 10:19 AM
    • 4,207 Posts
    • 3,224 Thanks
    Glen Clark
    I agree with TBC15
    Originally posted by dealer wins
    In that case why click on it, read it, post on it - and bring it to the top of the front page again?
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • fabij99
    • By fabij99 12th Apr 18, 2:13 PM
    • 1 Posts
    • 0 Thanks
    fabij99
    I got caught too and now paying solicitor fees but can anyone tell me did they send the deeds back with the buy back scheme as they request my solicitor is very concerned about letting this go before they pay any money etc
    • Malthusian
    • By Malthusian 12th Apr 18, 3:35 PM
    • 4,498 Posts
    • 7,154 Thanks
    Malthusian
    I got caught too and now paying solicitor fees but can anyone tell me did they send the deeds back with the buy back scheme as they request my solicitor is very concerned about letting this go before they pay any money etc
    Originally posted by fabij99
    I can see where your solicitor is coming from but I think they may be failing to see the wood for the trees.

    The Store First / Park First group is £30m in the red (as at June 2017) as a direct result of having to set aside £60m-odd for paying back Park First investors. The risk that Park First pretends the deeds got lost in the post is really neither here nor there. Your solicitor can always keep a copy and send the deeds Recorded Delivery or via courier.

    To have the best chance of recovering anything, your solicitor needs to a) get on with it b) chase Park First for the money to the point it becomes borderline harrassment.
    • Katiewhy2
    • By Katiewhy2 17th Apr 18, 9:05 AM
    • 22 Posts
    • 6 Thanks
    Katiewhy2
    How are you getting on with this?Have you heard anything back?
    I too have invested and am worried about getting my money back.
    • Malthusian
    • By Malthusian 17th Apr 18, 9:38 AM
    • 4,498 Posts
    • 7,154 Thanks
    Malthusian
    How are you getting on with this?Have you heard anything back?
    I too have invested and am worried about getting my money back.
    Originally posted by Katiewhy2
    Have you told Park First you want to exercise the buyback option?

    Who sold you this investment? The same people who sold you Diamond Construction and Renewables?
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