Buy-to-let in Yorkshire "Imagine Homes" ?

cibby

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We are tempted to buy a 1 or 2 bed apt with the company called "Imagine Homes", but know nothing of the scheme-they rent it out for you , for 4 years...
Has anyone got any experience of this company, or this type of scheme? We think it would be merely for capital gain.
We have never invested in England before, an tips would be helpful, thanks!
 
Get independent, professional advice! Bear in mind that many guaranteed rental investment properties build the cost of such a guarantee into the price of the property. Compare similar properties offered on the open market to this scheme.
 
We are tempted to buy a 1 or 2 bed apt with the company called "Imagine Homes", but know nothing of the scheme-they rent it out for you , for 4 years...

Are you sure....? Normally it's a two year deal they offer

Has anyone got any experience of this company, or this type of scheme?

So who is behind Imagine Homes. None other that Grant Bovey and Anthea Turner. Have you read the T&C's of the deal? You have to buy their furniture package to comply. Plus there is the 10% Management fee.....

You buy off them, they pay you rent in advance at the beginning of Year 1, and Year 2. This will return in total 15% of the purchase price to you. Sounds easy doesn't it.

It isn't. Past reports..... What happens in 2 years time when the flats come to rental market?

It's not unheard of for Bovey to leave the flat empty for those two years, or indeed return the flat to the owner telling them to rent it out but they can keep the 15%.

We think it would be merely for capital gain.

BTL isn't for you then. Bandwagon missed ages ago

We have never invested in England before, an tips would be helpful, thanks!

Yes. Do a lot more research first.
 
You are making a common mistake in the area of property investment, you are starting the process from information given to you by a sales outfit in isolation from the local market realities.

For instance, who are the tenants for these kinds of properties? What are their names and how will they pay the rent? By direct debit maybe? Where do they work, and have they references? Do they exist at all? Of course they don't, you are the tenant, paying rent on your own property minus a hefty management fee. Maybe this one is different though, have you checked?

Go back and start at the beginning. Decide where you want to invest, then visit the location several times and get an understanding of the local market. Look at what is on offer there both in terms of product and income, then talk to agencies in the market (not just locally, some Irish companies have a good grasp of overseas markets and shouldn't be discounted -- in fact you can often do very well by involving a shrewd irish or other non-local agent).

If, having done all the above, you still consider the "guaranteed rental" scenario the best bet, go for it! Unlikely though if you look around. As a more or less general rule, this kind of scheme is not for investors, i.e. people who want to put funds into something for maximum return.
 

smiler know his stuff - I would agree with what he says