These sort of land-banking "investment" schemes give wonderful returns -- to the people running them. Avoid.
Even if you thought the underlying assets were worth a punt, the structure of the deal is wrong. As an Irish investor into an IoM company proposing to purchase UK assets - what protection do you have?
If the 400% returns are so likely, why can't the developers get a bank loan to purchase the land? Why do they need Joe Public?
Why do you say avoid?
WHat do you mean the structure of the deal is wrong?
Presumably the reason they want investors is because they don't want to take on all the risk themselves.
As in - planning permission isn't guaranteed.
LPG claim that in their experience it is likely ut obviosuly not guaranteed.
That seems fair enough to me.
Also - for a bank to lend them mioney to buy it themseleves,they would obviously need a way of paying off the interest while they ae seeking planning permission - which will last a few years.
And anyway - they are not land speculators. That's not their gig. Their gig is trying to gather investors to buy land they recommend and go through the planning process on behalf of their clients.
I think that's fair enough.
They also state they personally will also be investing in it.
LEts assume permission is granted.
How lucrative are these thibngs normally in that scenario?