Direct Airport Parking - Legit or scam?
Discussion
A few people have been mentioning these guys to me: http://www.directparkinginvestment.co.uk and although it does seem viable the returns are a bit too good to be true.
Supposedly you buy (for £20k discounted from £30k) a parking spot in Glasgow or Gatwick airport to which you get title and sign a 6 year leaseback to them in order for them to manage it on your behalf. Returns guaranteed at 8% for the first 2 years and projected to rise to +10% in years 3 onwards.
Should you decide to disinvest they claim to have a secondary market to sell you spot on to or you can sell it on to third parties yourselves.
Has anyone heard anything about these guys? The website is s
tty, their email formatting is terrible and the guy that called me shot himself in the leg for trying the hard sell, but if it's legit I'd give it a bang.
Supposedly you buy (for £20k discounted from £30k) a parking spot in Glasgow or Gatwick airport to which you get title and sign a 6 year leaseback to them in order for them to manage it on your behalf. Returns guaranteed at 8% for the first 2 years and projected to rise to +10% in years 3 onwards.
Should you decide to disinvest they claim to have a secondary market to sell you spot on to or you can sell it on to third parties yourselves.
Has anyone heard anything about these guys? The website is s
tty, their email formatting is terrible and the guy that called me shot himself in the leg for trying the hard sell, but if it's legit I'd give it a bang. 20 years experience in Airport parking, yet the company was incorporated earlier this year (2nd April).
https://beta.companieshouse.gov.uk/company/0952359...
Not FCA regulated.
Pictures of Gatwick airport, but where will the deeds reveal your muddy patch of land to actually be?
http://www.thisismoney.co.uk/money/pensions/articl...
What would Duncan Bannatyne say?
https://beta.companieshouse.gov.uk/company/0952359...
Not FCA regulated.
Pictures of Gatwick airport, but where will the deeds reveal your muddy patch of land to actually be?
http://www.thisismoney.co.uk/money/pensions/articl...
What would Duncan Bannatyne say?
Edited by swatches on Wednesday 30th September 21:28
I had a client contact me about one of these. They had contacted her direct and she wanted to know if her pension scheme could acquire one.
I emailed the people several times, they never replied.
I eventually called them, left a message to call me back which they did, but couldn't answer any of the basic technical questions I had including how to realise the investment at some point in the future. They promised to email me more info but never did.
They just want to sell to unsuspecting punters. Much like the slither of a green belt field in recent years I fear.
I emailed the people several times, they never replied.
I eventually called them, left a message to call me back which they did, but couldn't answer any of the basic technical questions I had including how to realise the investment at some point in the future. They promised to email me more info but never did.
They just want to sell to unsuspecting punters. Much like the slither of a green belt field in recent years I fear.
PurpleMoonlight said:
I had a client contact me about one of these. They had contacted her direct and she wanted to know if her pension scheme could acquire one.
I emailed the people several times, they never replied.
I eventually called them, left a message to call me back which they did, but couldn't answer any of the basic technical questions I had including how to realise the investment at some point in the future. They promised to email me more info but never did.
They just want to sell to unsuspecting punters. Much like the slither of a green belt field in recent years I fear.
In all honesty they did answer those questions. It does not necessarily mean that things were as straight forward as they claimed them to be, as they baulked when I asked them for a copy of the sale contract for review by my lawyer. I emailed the people several times, they never replied.
I eventually called them, left a message to call me back which they did, but couldn't answer any of the basic technical questions I had including how to realise the investment at some point in the future. They promised to email me more info but never did.
They just want to sell to unsuspecting punters. Much like the slither of a green belt field in recent years I fear.
Beware your capital may be at risk 
Same deal as the self storage pods etc.
Works like a ponzi. Land could be worthless miles away.
You pay for the plot and they then essentially use your capital to pay the guaranteed return back to you for X years. After a few payments you think "this is great, hassle free and a great return", so you buy X more plots. Now the first guarantee period ends and you stop getting payments. Or they do still rent it out, but charge extortionate "management fees" so your return is non existent. Or they bust the company and set up another etc etc...
Now you can take over management of your spot, or try to sell it on - good luck with either of those options!
(PS - i'm just guessing there, but i have heard stories like the above several times re self storage pods etc) See:
http://www.professionaladviser.com/professional-ad...
At least with property you always have owner occupiers to sell onto if all goes pear shaped.
Same deal as the self storage pods etc.
Works like a ponzi. Land could be worthless miles away.
You pay for the plot and they then essentially use your capital to pay the guaranteed return back to you for X years. After a few payments you think "this is great, hassle free and a great return", so you buy X more plots. Now the first guarantee period ends and you stop getting payments. Or they do still rent it out, but charge extortionate "management fees" so your return is non existent. Or they bust the company and set up another etc etc...
Now you can take over management of your spot, or try to sell it on - good luck with either of those options!
(PS - i'm just guessing there, but i have heard stories like the above several times re self storage pods etc) See:
http://www.professionaladviser.com/professional-ad...
At least with property you always have owner occupiers to sell onto if all goes pear shaped.
Edited by trowelhead on Friday 2nd October 01:36
over steer said:
My question to him (that went unanswered) was that if the car park has been built for 15 years, and been returning a +10% yield for all these years - What do you need the money for?
Surely there are cheaper ways to get finance than that.
Exactly! They would get a commercial loan facility at under 5% and be expanding like crazy!Surely there are cheaper ways to get finance than that.
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