Interesting concept

I'm interested in something which I've received from the Peter Spann people about a new product they are launching.

Essentially, it seems they want to but, renovate and sell- eg, a block of units.

But they're not selling the units directly.

It would appear they are seeking contribututions to some sort of unit fund which buys a property, renovates and sells it, and distributes the profits.

They say they don't make any profit unless you do.

I'm not recommending any product or service.

But the concept sounds interesting.
 
They don't make a profit unless you do?

A unit-based approach like this sounds no different to a unit based managed fund. The nature of the underlying assets are a little irrelevant in my opinion.

Just like my managed fund, where the unit price has dropped considerably over the last 12 months - the point is that the "buy price" of the units is always higher than the "sell price" on any given day, so they will probably immediately make money on any units you buy.

Secondly, no one is going to work for nothing, so they will include some kind of management fee in the unit price calculations, essentially meaning the will make money (in my mind) whether the development makes money or not.
 
Yes, something like a unit based managed fund.

And something like a joint venture- except seeking funds over a broad base, not just for a few people.

The nature of the underlying assets is very important. I would regard a buy/renovate/sell asset as inherently much more possible to return a positive return than most share based managed funds which my superannuation funds have invested in.

Like many, my superannuation funds have gone backwards in the last two years. One has gone backwards by more than my annual year's contributions. So I would like to investigate further something which actually gives the possibility of growing.

I realise that Uncle Steve's fund is also suggesting good returns- in shares. I'm looking at both.

Steve (Navra's) fund is suggesting that it will only make a profit if the rate of return exceeds that ASX all Ords. But if it does, it will get a fair percentage of the profit. But I will still be left with a healthy profit. But if that fund underperforms the all ords, the manager gets nothing.

That sounds a similar proposition to what Spann's people are suggesting- but, as there is no prospectus yet, I can't tell. That is, if the fund performs, they collect a good percentage. If they don't, nothing.

And that is HEAPS better than my current funds. They don't perform. And they collect fees regardless. My investment goes backwards- but they still collect their fees.
 
Geoff,

I agree, I guess it's a case of waiting to see the prospectus when it is issued, and whether the scheme receives ASIC approval (or whatever the relevant authority is).

Is there any reference to Uncle Steve's scheme on the Navra web-site?

Cheers

Kevin.
 
Kevin,

Steve's product will be launched in February, the last time I heard. He has promised cocktail parties to launch it. Until it's all contained within an approved prospectus, I would assume that details may not be published.

But certainly his track record with previous funds, and with picking the appropriate shares at the right time, has been excellent.

Geoff
 
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