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Property Investments

  • 30-04-2019 1:35pm
    #1
    Diceicle
    Registered Users, Registered Users 2 Posts: 1,799 ✭✭✭


    Does anyone know about property investment schemes?
    How do they work? Whats the buy-in? Are they different to REITs?

    My basic understanding is that you invest an amount of money with a group of other investors. This group owns a number of properties in a variety(?) of locations. These commercial and residential properties are rented out. You get a cut of said rent.

    Its an area that has been on my radar. Though I'm really just curious about the mechanics of the deal more than anything.

    Thanks.


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    Diceicle wrote: »
    Does anyone know about property investment schemes?
    How do they work? Whats the buy-in? Are they different to REITs?

    My basic understanding is that you invest an amount of money with a group of other investors. This group owns a number of properties in a variety(?) of locations. These commercial and residential properties are rented out. You get a cut of said rent.

    Its an area that has been on my radar. Though I'm really just curious about the mechanics of the deal more than anything.

    Thanks.

    But they don't work! All across Europe there are plenty of examples and do not even get started on Irish failures. They in have no place in most people's portfolios.


  • #3
    Diceicle
    Registered Users, Registered Users 2 Posts: 1,799 ✭✭✭Diceicle


    Thanks. Is there a particular reason they don't work?


  • #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    Diceicle wrote: »
    Thanks. Is there a particular reason they don't work?

    There are dozens of articles out there on what went wrong. Do a bit of googling...


  • #5
    Diairist
    Registered Users, Registered Users 2 Posts: 367 ✭✭Diairist


    I figure they can't work until Brexit is fixed. Also, interest rates staying down helps builders.


  • #6
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    Diairist wrote: »
    I figure they can't work until Brexit is fixed. Also, interest rates staying down helps builders.

    Nothing to do with BREXIT, it was not even a topic in that period. Banks and asset managers create and sell these products so nothing to do with builders nor interest rates either.

    You simply break all the rules of investing when you take on these products and it should not be surprising that it ends in tears for most people.


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