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To ask the financially intelligent here, whether this "investment" opportunity is a rip-off?

(12 Posts)
MrsOverTheRoad Thu 26-Oct-17 23:53:00

snip.ly/8m7uh#http://www.dailytelegraph.com.au/newslocal/wentworth-courier/how-to-start-a-property-portfolio-for-less-than-100/news-story/4d66d1f1610e2377e4a1df7b9ba9dc98?nk=3e047ed1d854eb1963b0afdb4b3b8401-1502162320

Here. It's basically a company which sells "bricks" or shares in a single property. So individuals are allowed to buy a "brick" for a hundred dollars or so...there's a limit as to how many people can purchase.

This means there are loads of people with an interest in a property. Then the investors get a payout monthly according to value or something.

Is it silly? What's wrong with the idea?

Anecdoche Fri 27-Oct-17 00:11:26

Message withdrawn at poster's request.

Ttbb Fri 27-Oct-17 00:17:22

Yes, property is generally a pretty stupid investment. You would be better off buying stocks in Nike or sonething. Zero payment for up keep, zero effort and, zero stress.

MissConductUS Fri 27-Oct-17 00:17:23

Does the company promise to buy back your bricks? I know the article says you can sell at any time, but who will be the buyer?

MrsOverTheRoad Fri 27-Oct-17 00:28:35

All good points! :D It's like my Dad always said, "Nothing for nothing!"

I don't know who buys bricks back...

GetOutOfMYGarden Fri 27-Oct-17 00:28:56

Rip off. It's a way for a developer to get a nice big pot of money and then sell the development for less. The ROI would be negative or so low it's not worth it.

Apollo440 Fri 27-Oct-17 00:31:35

1.7% yield?
Stick it in a building society.

I'd be wanting 5% yield on a rental after costs before I was remotely interested. Someone is making a pretty penny and it isn't you.
Also consider liquidity. How do get out if you need your money back, can you be certain there will be a buyer?
There are any number of listed and regulated investment funds that specialise in property and offer double the yield. Better still chose one that spreads your investment over many sectors (which can include property) to reduce exposure risk.

MrsOverTheRoad Fri 27-Oct-17 00:33:36

Thanks all! I just watched an ABC report on it which said that you'd make more in the bank!

www.abc.net.au/mediawatch/transcripts/s4669475.htm

MrsOverTheRoad Fri 27-Oct-17 00:33:57

How does one go about buying shares in something like Nike then? :D

MissConductUS Fri 27-Oct-17 01:19:57

You can't judge the bricks just by the yield. There is some upside in terms of capital appreciation.

BadLad Fri 27-Oct-17 09:32:33

How does one go about buying shares in something like Nike then? :D

Your bank probably has the facility for you to do this.

MrsOverTheRoad Fri 27-Oct-17 09:57:29

BadLad thanks...I'm in Australia. I wonder if it's the same here...I'll check.

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