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New Investment Plan Offers To Double House Price R

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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

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Load of cr4p.

Any investors are still exposed to all of the risks listed, albeit hidden behind the product they have been sold.

This kind of scheme would allow SIPPS investment on a smaller scale, but WTF would anyone with half a brain invest in residential property right now??

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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

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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.

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You may be able to get the IFA to commission sacrifice - could be your best shot @ a return on this one!

Given how IG index got themselves in trouble over Halifax Price Index linked spread bets, I'd like to see how the rocket scientist plan to hedge away the risk.....

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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