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cartimandua51

6% Guaranteed Rental Yield For 4 Years

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This weeks Bournemouth Advertiser has just thudded through my letterbox. The above is on a full- page back page ad for the Poole Harbour Reach development, and continues

" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

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This weeks Bournemouth Advertiser has just thudded through my letterbox. The above is on a full- page back page ad for the Poole Harbour Reach development, and continues

" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

4 years! Ive seen the 2-years rent guarantee scam for holiday property. But 6% for 4yrs - that means the properties are at least 24% overvalued(?)

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4 years! Ive seen the 2-years rent guarantee scam for holiday property. But 6% for 4yrs - that means the properties are at least 24% overvalued(?)

Not really. It's overvalued by the difference between market rent and what they're offering. Which could theoretically be between 0% and 6% - but it's unlikely to be zero!

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Not really. It's overvalued by the difference between market rent and what they're offering. Which could theoretically be between 0% and 6% - but it's unlikely to be zero!

All depends how unrentable/how far away the market rent is ;p

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This weeks Bournemouth Advertiser has just thudded through my letterbox. The above is on a full- page back page ad for the Poole Harbour Reach development, and continues

" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

The part in bold is the important part, what they are offering is not 6% gross yield on the property value but on your investment in it, you put down 20% deposit with 80% mortgage, you get the 6% on the 20% nothing more.

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The part in bold is the important part, what they are offering is not 6% gross yield on the property value but on your investment in it, you put down 20% deposit with 80% mortgage, you get the 6% on the 20% nothing more.

That was my first assumption, but apparently not :

"Offer is based on a four year guarantee to make up the rent to an agreed annual figure based on a maximum of 6% of the gross purchase price"

from

http://www.bryant.co.uk/invest

What does seem mystifying that it doesn't seem to be offered on the Poole properties that are on the ad - there's a drop down list & Poole isn't on it!

Perhaps indicates where THEY know the bottom is dropping out of the market.

Edited by cartimandua51

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They've thought of that. You have to use their recommended letting agent and financial advisor.

I'm confused here. As I see it, the vendor is trying to sell vastly overpriced propoerty. One way of doing this is to provide mortage help for a few years, or, in this case, guaranteed rents. The vendor doesn't care who gets the rent - the purchaser will have paid it upfront anyway as part of the excessive price.

(anything to avoid cutting the price :) )

this "guaranteed rental" come-on is common in Florida newbuilds IIRC

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I'm confused here. As I see it, the vendor is trying to sell vastly overpriced propoerty. One way of doing this is to provide mortage help for a few years, or, in this case, guaranteed rents. The vendor doesn't care who gets the rent - the purchaser will have paid it upfront anyway as part of the excessive price.

(anything to avoid cutting the price :) )

this "guaranteed rental" come-on is common in Florida newbuilds IIRC

However, if they can ensure that it's let at market or near market rent they don't have to sub up the guarantee, so they win coming and going.

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This weeks Bournemouth Advertiser has just thudded through my letterbox. The above is on a full- page back page ad for the Poole Harbour Reach development, and continues

" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

I wonder what a CDS on Bryant costs?

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This weeks Bournemouth Advertiser has just thudded through my letterbox. The above is on a full- page back page ad for the Poole Harbour Reach development, and continues

" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

This reminds me of the two tier market in Australia in the 90s. The flew in people from other States and New Zealand, selling new build units. The carrot being they offered two years of guaranteed rental payments and also the flight if they purchased the unit. Of course using the deveoper's solicitor and valuer. The buyer found out two years later or so when they did their own valuation or were remortgaging their unit was worth 100K less. The classic was they stated the rental that the purchaser would get was ficticious usually a $200-$400 a month more than the reality but once the two years was up the buyer found out that the units were renting for alot less and then had to pay up the difference. An excellent scam. Australia I think has companies that have far outdone Inside Track. The sales people were next to none(sell ice to the eskimos and have no soul), to the 1st cold call to getting the people to fly up, to the saleperson that greeted them, who sat in which seat, the dominant partner in the front seat etc to not have any water available if they were dehydrated to the fake bleep/phone call that the unit they are looing at is going now they better act fast (the classic) I could go on. The put they used the fear factor in that do you want to retire poor (the buyers usually ended up worse bankrupt)

google henry kaye scam australia , Dudley Quinlivan (King Con) http://www.jenman.com.au/news_item.php?id=91

There are some classics that would make Inside Track like saints . Henry Kaye was charging 100K to teach people become millionaires overnight. (Yes they are gullible people outside the UK)

more examples being

http://www.hhpf.com.au/CaseStudies9.php

http://www.jenman.com.au/news_item.php?id=37

or just google two tier marketing gold coast (scam etc)

Edited by joey

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" Thinking of becoming a landlord? Here's an offer to take the uncertainty out of buying to let. For 4 whole years you'll never receive less than than 6% gross rental yield on your investment if you reserve a buy to let property from us this month"

Getting desperate or what!?

A similar deal be warned when you are given rental guarantees

A 2 year 6% rental guarantee was also included in the deal.

http://www.hhpf.com.au/CaseStudies10.php

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4 years! Ive seen the 2-years rent guarantee scam for holiday property. But 6% for 4yrs - that means the properties are at least 24% overvalued(?)

The rent guarantee is liable to income tax, but reducing the purchase price is not taxable in the hands of the buyer( or at least not until the property is sold when CGT is applicable).

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  • 295 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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