What’s the catch (property related)

[Pinkginxx]

Obviously there’s the short lease.... but this still looks too good to be true
www.rightmove.co.uk/property-for-sale/property-71179861.html?utm_source=sendtofriend&utm_medium=email&utm_campaign=buying
What’s the catch????

www.rightmove.co.uk/property-for-sale/property-71179861.html?utm_source=sendtofriend&utm_medium=email&utm_campaign=buying

The catch is you only own it for 5 years, there's a disclaimer at end of ad. You're basically buying a lease to rent out for 5 years.

This is a version of subletting.

You pay the £19000 which gives you 5 years ownership of the property.

Then you pay a further rent for the property each month.

You cannot live in the property but you can rent it out Airbnb style and anything over the monthly rent and the initial payment is your profit

Where does it say you have to pay rent? All I can see is the mention of the rental income you can get from it.

There's no rent, that's the rent you can make.

It doesn’t say you can’t live in it.

The five year lease is equivalent to about £320 a month, so think of it as lump sum rent and it’s very low.

Disclaimer: I know nothing about the housing market and am just using logic.

I presume that there is a horrendous ground rent / service charge / dilapidations clause.
No way would anyone sell an income of 5 years @ £23,500pa for a mere £19,995.

Where does it say you have to pay rent? All I can see is the mention of the rental income you can get from it

Call the agent up and see.

There are a number of these places on Rightmove.

Also I think the disclaimer of not being able to buy at the end might be a clue

Also Golden Properties are an investment company not an estate agent

Why on Earth would I call the agent?

Because you don’t seem to believe me when I give an explanation

There's bound to be a catch.

I'd buy it tomorrow if there wasn't and I wouldnt be the only one.

A two bed in that area would go for around 2800 per MONTH.

So there must be a catch

You didn't give an explanation though

You stated something as fact with no explanation when that information was not on the page. I asked where it said you had to pay rent and you again offered no explanation just told me to phone the agent.

🤷🏻‍♀️

It's called rent to rent, and is highly speculative. The only way you can get that level of income would be to rent on short term lease sites like Airbnb, and in many cases the head leases on these things forbid that. London also now has a limit on short term rents of 90 days per year, so it's pretty much impossible to make what they are suggesting.

I thought the explanation was in my first post.

No it doesn’t say you then have to pay rent but the agent “selling it” are an investment company. Equally the bit where it says you can’t buy the place after the 5 years is up should give an indication that it isn’t a straightforward sale.