Presentation From Property Syndicate

[mentletv]

I have just seen a presentation by a company called Property For Life (PropertyForLife.com). The presentation was actually at a Church and organised by the Minister. This is a property purchasing scheme offering to use the power of syndicate buying to negotiate up to 20% discounts on new BTL properties off plan or in construction.

The angle presented was that a purchaser should put down as little capital as possible and take the largest mortgage. If PfL had negotiated a 15% discount – and you got an 85% interest-only mortgage on the asking price then you wouldn’t need to spend a penny (besides solicitors fees etc).

It was explained that as property prices increase more equity could be taken out of the property for a tax free income. If property prices went down temporarily you’d still have the interest covered by the rental fees. Besides prices always go up in the end. Worried about interest rates? Then get a fixed interest deal. Now is the right time to do this. You can’t loose!

PfL charge 2% commission on each property and you need to use their mortgage broker / solicitor (more money made here). I suspect that further sweeteners are paid by builders…

I personally know many people at the presentation. They were already reaching for their wallets. Given the setting I suspect many took a lot of this on trust and hadn’t appreciated they were getting a sales pitch. The whole session was presented as ‘we can help you guys out of the poverty trap’. I am sure no one realised that the person who organised the PfL visit was on commission either.

There is a definite logic to what was said, but I wondered what else should have been said if a properly balanced view was being given.

David Austin from PfL introduced himself as having a £2.5m property portfolio. Is he really in £2.5m debt-trap should the market change? Or is he ‘financially free’? What do people think of this kind of advice? Personally the idea of owing so much money put a chill through me.

I have a heap of notes from the presentation if people want to know more.

[Guest rigsby II]

I have a heap of notes from the presentation if people want to know more.

<{POST_SNAPBACK}>

Sounds great.

Could you e-mail me details to my private address please, its at

[email protected]

Cheers..

[Sarah Beeny!]

Great, count me in also.

What a stroke of luck to hear of Debt (sorry sp) PropertyForLife.com

Can't wait to get to their site to get in before it's too late. Maybe I can transfer my money immediately by BACS.

This is my lucky break/pension for life.

Only a fu*ckwit would miss out on this surely??

[cgnao]

When the little poor faithful people are led in by the preachers, you know the top is in.

[Dicky]

David Austin from PfL introduced himself as having a £2.5m property portfolio.

<{POST_SNAPBACK}>

Ask yourself one question, if Mr Ar$etin did indeed have a £2.5 Millon in the bank why isn't he out have a good time I know I would. The truth is he probably has 2.5 Million in property, £2.3 Million in debt with a cashflow of £50 a month after everyting is taken out.

Thats why he's still working for a living.

[pre-raphaelite]

I personally know many people at the presentation. They were already reaching for their wallets. Given the setting I suspect many took a lot of this on trust and hadn’t appreciated they were getting a sales pitch. The whole session was presented as ‘we can help you guys out of the poverty trap’. I am sure no one realised that the person who organised the PfL visit was on commission either.

<{POST_SNAPBACK}>

I've got mixed emotions with this anecdote. One hand its one of the signs I've been looking for, the last desparate buyers arriving. My feeling is that we are little further back in the cycle than most posters here. So this is a good sign, the least informed buying right at (or just past) the peak.

But this anecdote it also a little sad, these well meaning but misinformed people are likely to suffer. I'd like to see house prices when they start to fall rapidly (probably 2 years time) being reported as a healthy, natural and long term good thing for the economy. These investors sound like the type of people who buy falt shares, millenium champagne, dot coms, zero & precipice bonds etc. The people will lose out because they were greedy, foolish, mis-sold and timed the market wrong.