Sancho Panza Posted July 19, 2017 Share Posted July 19, 2017 (edited) Property Industry Eye 19/7/17 'More than 40 property investors are taking High Court action after saying they lost money when buying student accommodation properties. The Irish investors, who include Ireland’s former prime minister Brian Cowen, bought apartments at the height of the property boom for £240,000, only to discover that last year they were selling at around £72,000. They are accusing legal firm Punch Robson Solicitors, which they say advised them, of negligence. The development, Carr Mills in Leeds, was completed some 12 years ago. It went into receivership in 2011. The solicitor acting for the group, Chris Waters of Meaby & Co, said the anticipated value of the total claim is £14m. He said: “We are aware that UK-based investment schemes of this nature were prominent with Irish investors between 2004 and 2008. “At the time, these investment schemes were being sold as having low or no risk, with participants generally funding purchases with the benefit of 100% mortgages. “Properties were often overvalued or failed to perform in line with representations made. Some of these developments have gone into receivership leaving participants with significant outstanding liabilities. “Hundreds of Irish citizens who bought into ‘risk free’ schemes have been left with crippling lifetime debt. We’re keen to hear from anyone affected.”' And then there's the new breed of investment opportunity Luton 8% net assured 5 years http://www.high-yield-investment.org/student-property.php?utm_campaign=Spring place&utm_medium=Google&utm_source=PPC ' "Our current Luton student accommodation is fully occupied and we are unable to keep up with demand. Students are keen to secure a room in one of our developments because they find this type of accommodation better value than outdated HMOs," ' Edited July 19, 2017 by Sancho Panza Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 19, 2017 Share Posted July 19, 2017 (edited) 8 minutes ago, Sancho Panza said: Property Industry Eye 19/7/17 'More than 40 property investors are taking High Court action after saying they lost money when buying student accommodation properties. I lost when I bet £10 on Sam Alardice winning his 2nd game in charge of England. Unforseen things happen, sometimes you win, sometimes you loose, only bet what you can afford to loose. #SuckItUpLosers Edited July 19, 2017 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 19, 2017 Share Posted July 19, 2017 8 minutes ago, Sancho Panza said: And then there's the new breed of investment opportunity Luton 8% net assured 5 years http://www.high-yield-investment.org/student-property.php?utm_campaign=Spring place&utm_medium=Google&utm_source=PPC ' "Our current Luton student accommodation is fully occupied and we are unable to keep up with demand. Students are keen to secure a room in one of our developments because they find this type of accommodation better value than outdated HMOs," ' The 50% collapse in the UK is going to be spectacular. Quote Link to comment Share on other sites More sharing options...
Thorn Posted July 19, 2017 Share Posted July 19, 2017 Brian Cowen was the Irish Taoiseach- Prime Minister so I would have thought he would have been getting what seemed like the best of advice. Wow. Quote Link to comment Share on other sites More sharing options...
billybong Posted July 19, 2017 Share Posted July 19, 2017 . Quote “Hundreds of Irish citizens who bought into ‘risk free’ schemes have been left with crippling lifetime debt. We’re keen to hear from anyone affected.” That's never happened before. Quote Link to comment Share on other sites More sharing options...
billybong Posted July 19, 2017 Share Posted July 19, 2017 3 minutes ago, Thorn said: Brian Cowen was the Irish Taoiseach- Prime Minister so I would have thought he would have been getting what seemed like the best of advice. Wow. and he was running the country Quote Link to comment Share on other sites More sharing options...
MattW Posted July 19, 2017 Share Posted July 19, 2017 Investing in a type of property meant for a specific demograhic, ie: students seems very erroneous. Quote Link to comment Share on other sites More sharing options...
Wayward Posted July 19, 2017 Share Posted July 19, 2017 ...this time is different...and London is special... Quote Link to comment Share on other sites More sharing options...
Thorn Posted July 19, 2017 Share Posted July 19, 2017 That's it. If insiders seem to be getting rinsed, pity the outsiders. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 19, 2017 Share Posted July 19, 2017 Would a successful case affect property prices and how developers pitch the sale? Although investments are risky, you may make money, make nothing or lose money unless of course you are a banker. Quote Link to comment Share on other sites More sharing options...
Thorn Posted July 19, 2017 Share Posted July 19, 2017 Part-shares in this sort of development were heavily advertised to people in the beefy property sections of the newspapers at the time in Ireland. Another beaut was German Office Buildings. Sure you can't go wrong. And of course Bulgarian apartments, to be bought off plan without even flying out to check. Quote Link to comment Share on other sites More sharing options...
Houdini Posted July 19, 2017 Share Posted July 19, 2017 32 minutes ago, Thorn said: That's it. If insiders seem to be getting rinsed, pity the outsiders. They are only insiders in Ireland, for the UK salesmen they were an easy target - especially once the UK salesmen had got their first sale and knew exactly what the right buzz words to use were. Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted July 19, 2017 Author Share Posted July 19, 2017 47 minutes ago, TheCountOfNowhere said: The 50% collapse in the UK is going to be spectacular. It's going to be worse than that.The guaranteed annual return could easily be paid out of the sum of the initial purchase price and the annual service fee for the first five years.What the adverts don't tell you is that there is only one service provider and they ain't cheap. I've had family members run these by me over the last 7/8 years and it's hard not to laugh.You could by either 1) a two up two down terrace near the Uni for £100k that's yours freehold or 2) a one room pod for £60k,annual fee £3k or so,one provider of said servicing,who can raise prices whenever they want and only one likely buyer if it goes wrong. Personally,I think both are poor long term investments but at least with 1),after renovations,non payments etc etc,you will be left with a freehold to pay the empty council tax on. On these student investments,the money is in the service contracts not the rent. On a separate issue,huge chunks of Leicester that were student BTL have been bailed out by the EU migration filling gaps in demand.The sell off could be brutal in these areas fi you're looking for FTB's to offload to. Quote Link to comment Share on other sites More sharing options...
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