This just popped up in my inbox:
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The recession proof investment.
Minimum income 4.5% pa, target 10% pa
Low risk – safer and more return than bank deposit
Property with no Stamp Duty liability
Direct ownership in investor's name
Large and liquid exit strategy
Possible SIPP investment
Capital Ground Rent manage investment for just 5% of gross income*
*SPECIAL OFFER – All investments made before December 2010 will enjoy a 20% reduction on the management fee!
One of the most secure investments, property backed, Capital Ground Rents offer a unique opportunity to own a portfolio of ground rent investments from just £2,000. This investment offers hassle free returns managed by a highly experienced management team.
In the current economic environment many well-informed investors are looking for a fresh way to maximise their income whilst at the same time controlling risk.
Capital Ground Rents provide a rare opportunity to diversify a clients' portfolio into a secure investment returning considerably higher returns than bank deposit at the moment and for some time in the future.
For more information and application forms please contact,
Chris Rathbone
Capital Alternatives
Tel: 0207 324 5428
Mob: 07500 964503
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Splendid. Let's all not bother working any more - let's just tap into a stream of privately collected taxes instead. Somebody else does the hard work so that you don't have to!
Remember: house prices can only go up!
I'm So Glad I Never Clapped For Them...
2 hours ago
6 comments:
Ground rents.
Ground rents.
Not property.
Ground rents.
I know you have a real hardon on property but this is a no brainer. Buy them at auction - fixed income. Do the math.
No. Ground rents are definitely what gets us hot and bothered. It's just that when LVT is introduced, your business model falls flatter than a picture of a pancake that's just been run over by a road roller driven by Fat Bastard.
Because LVT will tax away your revenue. At least if you were renting apartments you'd be able to keep the revenue from the building.
So you'll forgive us for not taking you up on your well-meant advice.
Anon, did I use the word "property" anywhere in that post? Nope. It's a stupid and inaccurate term to use anyway, as it includes all "property", not just land and buildings. See Derek's comment for explanation.
D, thanks for back up.
There's a useful article here: http://en.wikipedia.org/wiki/Ground_rent
"Minimum income 4.5% pa, target 10% pa
Low risk – safer and more return than bank deposit"
Unless your leaseholders default, of course. There is often little ability to increase the ground rents with inflation, it appears.
"Property with no Stamp Duty liability
Direct ownership in investor's name
Large and liquid exit strategy"
Ponzi scheme: the exit strategy is only there if people are still keen to buy when you want to sell.
"Possible SIPP investment
Capital Ground Rent manage investment for just 5% of gross income*"
Yes, but can you trust them to sort you the good freeholds from the bad ones?
"Splendid. Let's all not bother working any more - let's just tap into a stream of privately collected taxes instead."
Mark, if you've got that sort of money to invest, you probably wouldn't have to work any more anyway. You could just as well invest it in the stock market or buy a share in a business or something.
Ground rent 'investment' is certainly a winner for the long-term investor. As long as you don't take on debt to buy it there are no costs of ownership, for a continuous revenue stream. You will make your money back at some point (and the only way that won't happen is if LVT comes in..). Whether these guys will actually sell you what they're offering is another matter. This is the very definition of rent-seeking.
Erm. The extended Lola family owns a selection of ground rent reversions on leasehold flat developments carried out by my old dad. These pay nominal sums of about £20 to £100 per annum on leases of up to 999 years. (My old man was thinking of his buyers). There are some shorter leases.
Owning such freehold reversions is all very well but they are a hassle - if you are an honest man trying to act reasonably. The real earners come from the time when the flats are unmortgageable because of the short remaining lease period and the lease needs renogtiation, or when tenants want to do stuff, when you charge them a high fee, or when they want to sell - ditto.
The other opportunity would be to add a floor to each block.
Personally I wouldn't bother unless I was doing it for a living. And if that was the case they are quite a nice little earner, until the advent of LVT. I have been told that they are tradable at about 4x factor. Does anybody know if thats' the case?
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