GOLDMAN 555

He is anyone still hearing the adverts on the radio for Inside Track I can't believe they are still operating there must be Tumbleweed blowing through their “seminars”


Cautionary tale:

Read this first http://www.zeromillion.com/financial-services/how-to-achieve-financial-freedom-with-your-home-by-geoff-morris.html

Then This….http://www.guardian.co.uk/money/2008/mar/22/buyingtolet.investmentfunds

Oh dear

PaulC72

sad sad story.

David Lock

Greed and stupidity - they'll both get you in the end (well quite often anyway)

Am I right in thinking if the individuals had formed a Limited Company they could just have gone bust and kept their own property? dl

Luminous

iTrader: (3)

It was a great concept, its just a shame that people blatantly lied to the investors. If they had not been lied to, the theory was sound, and still is (although its very hard for the maths to work in the current climate).

And yes, if they had formed a limited company to put the assets in then they would have been ok. It does get a little more complicated when dealing with limited companies though, depending on what you are wanting to do with the property long term. However for the chap who bought 30, he should have used one

pslewis

I have no sympathy to be honest - if it looks too good it is!!

Greed is what closes peoples eyes to the obvious and I thank my lucky stars that I trust nothing and no-one who is offering me a way to riches (Why on earth would they tell me???).

David Lock

And don't forget the stupidity..... Starting point - buy a local paper and see what rents actually are (or ask any student) rather than just take the word of an agent. dl

salsa-king

i went to a seminar of InsideTrack a few years ago. stayed 30mins once i got the jist of what the crack was.

they get all their 'solicitors/advisers' to 'help' you.

you pay min £6k for the list of properties that they have discounts on.

(eg: a Flat in London for £340k as 10% discount to buy off plan... so saving £40k!!)

you also paid them £119 per month DD too.


in total I worked out you would be paying out also £12k if you went with all their 'offer of help' + the monthly payment.


I all looked off plan buying... also pushing to sell you properties in places like Hungary.

They also would offer you a Letting Agent service, interior furnishing service etc etc... all at extra cost.





when they asked the 'room' who had a second property.. most there put their hand up.
looking round the room 50%+ didn't look like they could afford their own house let alone buy another!! lol



hence I walked out.

GOLDMAN 555

If inside track haven't been investigated so far they should be the millions of sheeple have jumped on a property bandwagon instead of their pension are about to get a nasty shock.

What I would like to know is how many of these people that have invested in property are sitting there thinking that they are doing all right and relatively well off when in reality the bailiffs are going to come knocking soon...

Luan Pra bang

I used to know some brokers who dealt in this kind of thing. The developers would have an early marketing price of 250k for a supposed luxury flat in a city centre. A certain number of these would be offered to brokers in groups of 3 or 5 at that price but with a 10% commision to each broker who sold them. The brokers would then desperately try to sell them to all and sundry often forging bank statements and payslips to get the mortgage through and guaranteeing the rent for 6 months or a year to help sell the deals. By the time the first flats were built and sold, the first marketing prices would be dropping and within a few months it dawned on people that they had paid 250k for a 200k flat. WIth up to 25k commision per flat the rewards for the brokers were huge. THe other amazing thing was that when these people had realised they were almost broke the same brokers would offer to get them a re-mortagage on their own house to fill in the gap untill they could offload their flats charging them huge cash fees on top for fiddleing the paperwork.

richardg

it all comes down to mortgage fraud in the end...saying you're buying at the valuer's valuation and using a gifted deposit without notifying your lender

ipswich is a prime example - the flat makret there has been suffering for approx 18months

fatherpierre

Only the foolish fall for the crap these companies try to sell.

All you need do is compare rents to mortgage payments to see rents are far cheaper (London). London's gone as far as BTL is concerned - even council flats are asking big money.

My brother was looking at buying in Dulwich, and was just able to get a mortgage on a 1 bed flat. I then pointed out that he can get a 2 bed flat that's literally twice the size for around £300 per month less and he now owes me a few pints.

Yes, it won't ever be his. But, what a wrong time to buy as it's all still hovering at its peak and renting's so much cheaper.

Deep Singh

similar thing going on with overseas property. Rental gaurantees given for a year or two at inflated prices by sticking that amount onto the asking price! Why are people so stupid??

richardg

if you factor that in to your purchase costs, it's not always necessarily a bad deal - it's well worth checking the detail somemtimes, not that this sort of thing ever appeals to me. i'm not into risking my home by mortgaging it up to the hilt (thereby committing to even hgher monthly costs!) just to make a few quid - there are other ways