Developers

[rollyt]

I was approached by a developer called First Foundaion Developements. they are developers in Queensland.

They own land at Labrador and are building a 15 storey high rise 71% is already sold . They own land at Robina woods and are building water front Condominium 72% sold. They also have land at Main Beach building duplexes 80% sold.

The company is approaching investors who have minimium of $10000 and upwards and want to invest in these 3 developments and in return they are going to secure and guaranteed a 12.5% to 15.9% interest return on your monies that you have invested.

I have checked ASIC and all i's and t's have dotted and crossed.

I already own IP's that are returing 2% to 6%

Does this sound too good to be true?
What are your thoughts?

Regards Rolly

 

[geoffw]

I don't know anythything about these people, so I'm sorry if I do them a disservice.

But I'm always wary of people who offer deals too good to be true- especially from developers- and even more especially from people who guarantee a rental return. Frequently, this is built into the price, and is also for a limited period only.

I'm especially wary of anything which includes "Gold Coast". There's beren so many people investing there who have lost money from overpriced developments.

Check with comaparable existing developments to see what rental returns are. Check out comparable prices. Check out price history.

There is a chance that it will perform OK in the current climate. But I suspect you could probably fo better.

2% return on a property? Ouch. Where? Have you achieved any growth on that property?