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Leaseback.

Posted by Treasure Island-191530 - Created: 14 years ago
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Hi,

Are these leaseback deals a good investment?

Regards

TI

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7 replies (Showing replies: 1 to 7)

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Posted by Monaco Max-189694 - 14 years ago

French Caribbean, eh? Let me know if you would like advice on developments there.MAX (of Monaco)

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Posted by Monaco Max-189694 - 14 years ago

There have been occasions where the investment has under performed, and claims were duly processed and paid, although I am unaware of a block which has underperformed in our region.MAX (of Monaco)

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Posted by riffa - 14 years ago

Monaco Max

Note what you say about the agents being underwriten by an insurer but do you know if one has ever paid out? When I worked in the City we used to have deals 'wrapped' by an insurer but actually seeing a payout...that was a different matter!

Ciao

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Posted by Treasure Island-191530 - 14 years ago

Thank you one and all! The area I am thinking about would possibly be the French Caribbean.

Cheers

TI

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Posted by Monaco Max-189694 - 14 years ago

The lease back schemes are quite simply a great investment. No estate agent or developer sponsering these plans has gone bust because they are insured. If you would like more info please email me and I will be happy to fill you in on the details, and what is available on the CdA.MAX (of Monaco)

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Posted by riffa - 14 years ago

My observation and understanding of them is that there are only two real negatives:

1. The initial price payable for the property, even with the VAT saving, looks high in comparison to similar property in similar position (maybe only for the three I've looked at in detail), and

2. There is a credit risk on the agent (to find tenants or to pay).

Estate agents I have spoken to assure me of two things:

1. The purchase prices are spot on, and

2. No agent sponsoring a leaseback scheme has yet gone bust.

Presumably if one is happy with the initial purchase price and yield, then the contract will allow agent substitution if the sponsoring agent goes bust.  I'm not sure if this is much of a comfort tho' cos if the sponsoring agent goes bust it could be because it was unable to provide the promised tenants/yield.  Therefore would another agent want to 'step in' promising similar terms...???

But I like the schemes! And I'm not an agent.  I guess it's possible to obtain higher yield if done oneself but with major voids and hassle risks.

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Posted by munchkin-191066 - 14 years ago

Yes, they're a very good mid to long term investment - not a get rich quick scheme. I've got a few website addresses of companies who specialise in them so mail me if you'd like me to pass them on to you.