Investing in apartments builds - what's the scam?
Discussion
http://www.knightknox.com/l/chronicle-house/?sourc...
• Circa 8.52% assured NET rental returns for 2 years
• Boutique studio apartments
• Great on-site facilites - private gymnasium, laundry room and bicycle storage • Walking distance to major universities
• Built and managed by experienced developer
• Great central location in the heart of Chester
With an ever-growing student population, the historic city of Chester is the perfect location for our next student accommodation development Chronicle House.
A building formerly owned by The Mirror Group (TMG), the 62-unit development is within walking distance of local shops, restaurants and bars, and is just a 6 minute drive from the University of Chester, making it an ideal student location.
Each self-contained studio apartment is fully furnished to the highest of standards. Students will also have access to a range of communal facilities including a fully-equipped gymnasium, laundry, bike storage and entertainment lounge.
• Circa 8.52% assured NET rental returns for 2 years
• Boutique studio apartments
• Great on-site facilites - private gymnasium, laundry room and bicycle storage • Walking distance to major universities
• Built and managed by experienced developer
• Great central location in the heart of Chester
With an ever-growing student population, the historic city of Chester is the perfect location for our next student accommodation development Chronicle House.
A building formerly owned by The Mirror Group (TMG), the 62-unit development is within walking distance of local shops, restaurants and bars, and is just a 6 minute drive from the University of Chester, making it an ideal student location.
Each self-contained studio apartment is fully furnished to the highest of standards. Students will also have access to a range of communal facilities including a fully-equipped gymnasium, laundry, bike storage and entertainment lounge.
menousername said:
"Circa 8.52% assured"
how can a figure be both circa and assured?
is there really sufficient return / growth where students are involved? how much can they really afford?
Yes odd isn't it. And assured for 2 years so maybe subsidised, then you are left to market forces. how can a figure be both circa and assured?
is there really sufficient return / growth where students are involved? how much can they really afford?
Student flats charge exactly what students can afford, ie, their entire annual loan after tuition fees have been removed.
Radio 4's money box covered group property investment a couple of weeks ago, which this kind of sounds like.
The written feature is here...
and the radio programme here.
Radio 4's money box covered group property investment a couple of weeks ago, which this kind of sounds like.
The written feature is here...
and the radio programme here.
SamR380 said:
Student flats charge exactly what students can afford, ie, their entire annual loan after tuition fees have been removed.
Radio 4's money box covered group property investment a couple of weeks ago, which this kind of sounds like.
The written feature is here...
and the radio programme here.
ahah... there's the catch thenRadio 4's money box covered group property investment a couple of weeks ago, which this kind of sounds like.
The written feature is here...
and the radio programme here.
There are loads if these deals about I've seen them in Liverpool. They are student apartments so often don't have bathrooms it's just a box! And what happens after the 2 years? Could be very difficult to ever sell it you couldn't let it to normal tenants.
Also 6 min drive from Central Chester. Where are they? Chester isn't big in 6 minutes you could drive out of the city passing hundreds of student lets on the way.
Also 6 min drive from Central Chester. Where are they? Chester isn't big in 6 minutes you could drive out of the city passing hundreds of student lets on the way.
No scam - but dangerous nonetheless.
Do you understand the student let market? Do you know Chester well? Do you understand the dynamics of the property market as an investor rather than just as a homeowner?
Unless you can answer 'Yes' to all three, walk away. The number of people who sink their life savings into something they don't really understand and can't accurately assess is staggering. Making money from property makes fools of many professionals, let alone amateurs with nowt but a bit of cash and a lot of greed on their side.....
Do you understand the student let market? Do you know Chester well? Do you understand the dynamics of the property market as an investor rather than just as a homeowner?
Unless you can answer 'Yes' to all three, walk away. The number of people who sink their life savings into something they don't really understand and can't accurately assess is staggering. Making money from property makes fools of many professionals, let alone amateurs with nowt but a bit of cash and a lot of greed on their side.....
menousername said:
"Circa 8.52% assured"
how can a figure be both circa and assured?
is there really sufficient return / growth where students are involved? how much can they really afford?
I shan't comment on the veracity of the claim, but the phrasing does make sense. It means the return will be an assured return, but they're not exactly certain of what that'll be at the minute. That's how I read it anyway.how can a figure be both circa and assured?
is there really sufficient return / growth where students are involved? how much can they really afford?
select do a similar thing..
35% over 5 years..
Student property is a great asset class in good locations, i just worry about the resale market on these units.
http://www.selectproperty.com/ppc/student-property...
35% over 5 years..
Student property is a great asset class in good locations, i just worry about the resale market on these units.
http://www.selectproperty.com/ppc/student-property...
Sid's Dad said:
No scam - but dangerous nonetheless.
Do you understand the student let market? Do you know Chester well? Do you understand the dynamics of the property market as an investor rather than just as a homeowner?
Unless you can answer 'Yes' to all three, walk away. The number of people who sink their life savings into something they don't really understand and can't accurately assess is staggering. Making money from property makes fools of many professionals, let alone amateurs with nowt but a bit of cash and a lot of greed on their side.....
I know Chester. I got sent an email and was intrigued as to why anyone would buy one. Seen plenty of similar stuff in the city mainly hotel related but as it seems to good to be true (and in my mind something to swerve) I wondered what the catch was.Do you understand the student let market? Do you know Chester well? Do you understand the dynamics of the property market as an investor rather than just as a homeowner?
Unless you can answer 'Yes' to all three, walk away. The number of people who sink their life savings into something they don't really understand and can't accurately assess is staggering. Making money from property makes fools of many professionals, let alone amateurs with nowt but a bit of cash and a lot of greed on their side.....
It appears to be 2 years of perhaps subsided rent before you lose your money
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