Get Rich Quick Not

[Space cat]

-- each would get about £400 on top of their £1000 investment, or £4000 per £10,000, are my sums correct? is this better than banks or not?

Your sums are correct and a 40% return over five years is roughly equivalent to 7% APR. I think that's better than you can get from a bank at the moment.

The unknown in the equation is, as joe-90 keeps reminding us, the final value of the house. If you only get back what you paid for it, your profit is only 20%, which is 3.7% APR. Not so good.

The trick of course is to be careful where you buy, but you're the landlord so I guess you know that already. Eggs and grannies come to mind. Don't forget the small print. You'll be asking people to put their money into a scheme with no guaranteed return and maybe an uncertain maturity date too. They're going to expect some sort of a contract.

 

[pred]

Thanks for a very informative reply Mr Cat, where has this small print materialised from I thought i was being conservative with my "guestimates" but yes profits can go up or down, if after 3 or 4 years the market is still supressed then just bide our time until things get better, as i say only invest what you're not going to need, contract? thats the fine tuning i was refering to.

 

[conny]

Not got the money to invest in such schemes, however, do have one or two questions.

You are asking for 300 investors.
Would they need to be from the Bristol area?

If not then how and who decides where and what property to buy?
Who decides when to sell?
Does the 'finance' expert get paid a remuneration for the extra work he will be doing while the other investors just sit and wait?
Would the 'rent' money be put in a secure bond or used to speculate in the hope of maximising returns?
When the house is sold will any of the investors be subject to any form of tax on their investment?

There are a whole raft of questions which will need to be answered and legally documented before this scheme were to get started.
No-one in their right mind would hand over a large sum of money based on a piece of A4 paper with some typed words on it.

Sorry Pred, but whilst I admire your way of thinking, things are not so simplistic that you could generate enough interest on a General Discussion forum.

 

[LastMagicBean]

Put me down for a Nicker.

 

[pred]

Thanks conny, investers can come from anywhere, Iraq Somalia Nigeria or even Liverpool as to the areas to buy it would be open to discussion, also i had you earmarked as our banker conny, now you tell us you're not in

 

[pred]

Conny have you got that LMB 1 nicker.

 

[conny]

Conny have you got that LMB 1 nicker.

Yep, already spent, I mean invested!!

 

[chapeau]

I've got an house you can have. Needs a new garage door but as you want to rent it out I doubt that would bother you.

On the market for £250k.

As you reckon the market will go up 20% in the next five years you can have it for £275k and I'll even throw in the carpets. And I cannot be fairer than that.

 

[LastMagicBean]

Conny have you got that LMB 1 nicker.

Do I get the option to reduce my investment.????

 

[pred]

Not got the money to invest in such schemes, however, do have one or two questions.

You are asking for 300 investors.
Or one investor with 300 big ones.

Would they need to be from the Bristol area?
No

If not then how and who decides where and what property to buy?
Me

Who decides when to sell?
Me

Does the 'finance' expert get paid a remuneration for the extra work he will be doing while the other investors just sit and wait?
Minimum wage applies.
Would the 'rent' money be put in a secure bond or used to speculate in the hope of maximising returns?
Pi55 up down the pub.
When the house is sold will any of the investors be subject to any form of tax on their investment?
Is this a trick question, can i phone a friend

There are a whole raft of questions which will need to be answered and legally documented before this scheme were to get started.
http://youtu.be/OAH6Zt30n58

No-one in their right mind would hand over a large sum of money based on a piece of A4 paper with some typed words on it.
Typed words??

Sorry Pred, but whilst I admire your way of thinking, things are not so simplistic that you could generate enough interest on a General Discussion forum.

 

[conny]

Conny have you got that LMB 1 nicker.

Do I get the option to reduce my investment.????

Sorry, its already been invested in 3 packs of ciggy papers and gone up in smoke.

 

[pred]

Can that go down as exspenses.

 

[LastMagicBean]

My own fault.

Had high risk written all over it.

 

[big-all]

What the UK needs is lower house prices, lower wages, higher competitiveness in the global market. House prices must fall in the long term.
If they don't we go bust. Simple as that.

Joe, it looks like you're right again, we should all be living in council houses, but we cant because they have been sold off. House prices have never fallen in the long term, before the last rescession the house i live in now was worth £60k, it has recently been valued a tad over £300k

to be fair this government is closing down the higher rental payments to the hard working people who have subsidized housing this will throttle the need in certain areas and reduce the value for "social housing" with the reduced competition and value in the mid to bottom range

 

[Nige F]

it was his property portfolio that sent him bust.

i hope it would escalate and the syndicate end up with Old Kent Rd round to Mayfair.

Ah , Monopoly - I always go for the Utilities and stations when playing - seems like it works in real life for the Utility suppliers.