I looked at that property as well, and was seriously considering buying it. Actually I reserved one flat, but then I backed down. Concern I had are:
- who is behind this company? I have been unable to find any information as to the owners. This is strange!
- why are the flats so expensive? 50,000 for a 15 sq. ft. room in Preston does sound very expensive. One reason is that they sell it at much higher than the construction price (maybe double),so as to guarantee 10% income for 10 years.
- there is a flat on sale by another company for 42,000, with guaranteed income of 7% for 5 years. So if the company (emergingproperty) goes bust, I will probably lose 50% of my down payment
At the end of the day, if it's too good to be true, it's probably not true. Although they have a good track record (as far as I can see, since there are no negative comments online, of investors who lost their money) it might be a ponzi scheme, since they seem to be building 2 properties a year for the last 5 years. So it's a new company that has grown very fast, and promises the moon. Based in Dubai. Yes. It can be a ponzi scheme.
10% income for 10 years is a bit too generous to believe...
