"cashbax" mortgages
"cashbax" mortgages
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Discussion

Kudos

Original Poster:

2,674 posts

190 months

Monday 5th September 2011
quotequote all
Have just come across this outfit while perusing property website. There must be a catch, I just can't see it. Too good to be true?

www.cashbaxproperties.com

Basically, buy a house from them, get big cashbak next day then get 100% of your money back in 7 years guaranteed! (guaranteed by whom etc etc)

Wheres the "angle" for them?

Kudos

Original Poster:

2,674 posts

190 months

Monday 5th September 2011
quotequote all
Exclude the fact that it is NI based

davepoth

29,395 posts

215 months

Monday 5th September 2011
quotequote all
http://www.youtube.com/watch?v=bha71nQiiH0&eur...

From what I can glean, your estate agent will be paying royalties to Cashbax, who then have seven years to play with that money on the stock market to make back the amount they have to pay you back. Failing that it could just be a pyramid scheme.

Kudos

Original Poster:

2,674 posts

190 months

Monday 5th September 2011
quotequote all
but as a buyer, how would you lose? You still have the property at the end of the term?

Countdown

44,966 posts

212 months

Monday 5th September 2011
quotequote all
As far as I can see you EITHER get a cashback OR you leave the money with them and watch it grow (up to 100% of purchase price). My guess would be

  • They charge the vendor a hefty premium for advertising/selling property
  • Part of the premium is given back to the buyer OR it is invested and over 7 years it grows to 10%-100% of the original purcahse price.
To be honest, given the current interest rates, I can't see how they would make enough money over 7 years to cover the purchase price, unless the premium charged to the vendor was something silly like 60%.


jonah35

3,940 posts

173 months

Monday 5th September 2011
quotequote all
Countdown said:
As far as I can see you EITHER get a cashback OR you leave the money with them and watch it grow (up to 100% of purchase price). My guess would be

  • They charge the vendor a hefty premium for advertising/selling property
  • Part of the premium is given back to the buyer OR it is invested and over 7 years it grows to 10%-100% of the original purcahse price.
To be honest, given the current interest rates, I can't see how they would make enough money over 7 years to cover the purchase price, unless the premium charged to the vendor was something silly like 60%.
just avoid at all costs.

thing is, if anyone has a limited company they could say "give me £100k and i guarantee to give you back £120k in one year". If my massive gamble I take with your 100k pays off then you get your 120k back. if I put your 100k on red but black comes up then I as the company owner have £0 so you cant have your money back!! the limited company folds and the guarantee is useless.



F458

1,009 posts

185 months

Monday 5th September 2011
quotequote all
Don't really think they offer a mortgage, what they are saying is that if you buy say a £200k house through an agent who deals with this 'cashbax' lot then you pay £200k then the estate agent will pay cashbax say £20,000 as a fee for selling it through them and then 'cashbax' will "invest" that money so that it will be worth £200k after 7 years!! All sounds very good, but how are cashbax going to generate those returns? I have looked on the moneysavingexpert forum and the suggestion there is that cashbax invest these funds in forex markets and generate 3-4% a month etc etc etc. I'm not so sure to be honest. For the estate agent it means that they sell a house but it has cost them £20k to sell it, for cashbax they have a pot of money from the estate agent to do whatever they wish with for up to 7 years, for the punter, he has a chance of getting a small amount back up to the 6th year or the whole amount back in year 7, but the punter has probably paid over the odds for this in the first place. If cashbax disappears after 6 years then where do get your money from? Also if you look at the '100% diamond' cashback properties a lot of them are stuff in Bulgaria!! I mean jesus christ how dodgy does the whole thing look to the naked eye?