Buying Property Funds or Buying Property Under Your Ownself
Last week saw the fraud of The firm, then called Dolphin Trust and now known as German Property Group (GPG), described itself as “master builders and monument experts” and “Germany’s market leader in redeveloping listed buildings. Many people saught out the easy money and were targets of the fraud. They lost their lives savings.
GPG claimed that by restoring historical buildings and turning them into luxury apartments, taking advantage of German tax breaks, it said it would provide investors with double-digit returns. All in all GPG owes more than €1bn to investors all over the world, although mainly in Britain – where there are an estimated 6,000 affected individuals – Ireland and Asia.
Maybe not as extreme commercial property funds have frozen redemptions on their funds.
So what are property investors to do? Roll up their sleeves and read and actually work a bit to gain knowledge. Learn about the niche of social housing. Own the property in your own name registered in the land registry. Nothing comes easy however social housing with the Home office as the tenant there is some degree of surety and at the end of the day, one owns brick and mortar in their own name. With social housing and the programs in which we work, there are no voids, no management and maintenance is covered up to 5,000 a year. You can be an offshore investor and not worry about the toilet leaking or the working tenant not paying. Or even not worry about the estate agent who really is not managing.
Bottom line I strongly suggest staying from property funds and learning more about social housing and all of its benefits.