Jump to content
House Price Crash Forum

New Investment Plan Offers To Double House Price R


Recommended Posts

0
HOLA441
1
HOLA442
Am I stupid or does this one way bet mean if prices fall by 10% you still get your stake back? This is pointless surely?

http://investing.reuters.co.uk/news/newsAr...OUSE-PRICES.xml

They will get nice use of the capital for ten years. Hand over 10% to the structured derivatives team who will place a deal with some investment bank for a

a product that hedges out the risk. Pass the other 90% of the capital to the trading boys who will have fun with it messing about with it trying to earn 500% bonuses.

Edited by Numani
Link to comment
Share on other sites

2
HOLA443
3
HOLA444
Am I stupid or does this one way bet mean if prices fall by 10% you still get your stake back? This is pointless surely?

http://investing.reuters.co.uk/news/newsAr...OUSE-PRICES.xml

This is rather like the 130% of ftse growth, capital protected Virgin GEB.

What isn't mentioned is that for this GEB, you won't receive ANY dividends from th eindex constituents.

Similarly in this property packaged investment you will receive NO rental income and NO interest. This is a PURE play on property value appreciation. Even on average this "ain't all that". Now consider where we may well be in the cycle.

In short this may well amount to an interest free loan for the plan vendors. Remember: return is proportional to risk. Always has been, always will be. This is a no risk product (capital wise), so don't be surprised if it returns nothing.

EDIT: Numani explains the mechanics imho realistically. However, I should say that capital protected 110% of growth trackers on the ftse were available 2 years ago. They would so far have done their particpants proud, but remeber, your money is tied up for the period of the bond / whatever they call it.

Edited by Sledgehead
Link to comment
Share on other sites

4
HOLA445
Am I stupid or does this one way bet mean if prices fall by 10% you still get your stake back? This is pointless surely?

http://investing.reuters.co.uk/news/newsAr...OUSE-PRICES.xml

1. It's only available through a Financial Advisor (who will get a percentage)

2. They get to invest the money for ten years......

3. It's averaged over the last year (very cunning)... minimising the payout.

4. 10 years is about the time that property will slum/recover, judging by past

experience.

5. It is a very sound scheme...... for the schemers, not the investors.

Link to comment
Share on other sites

5
HOLA446
6
HOLA447
7
HOLA448

Maybe they should try this instead.

http://www.rightmove.co.uk/action/SoldPric...lladdress=false

Number 1 sold for £46k in January this year. While this one (not the same house) is on for £94k. :rolleyes:

http://www.rightmove.co.uk/viewdetails-903...pa_n=3&tr_t=buy

Edited by libitina
Link to comment
Share on other sites

8
HOLA449

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information