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Unsuspecting overseas investors being tricked - says agent.
Estate agent, Ludlow Thompson, claims that some overseas property advisors are luring investors under false pretences.
The estate agency refers to some overseas property schemes that offer guaranteed rents for one or more years. Initially the guaranteed rental return looks attractive, but investors are by no means certain to achieve anywhere near the guaranteed rent, or even be sure they will be able to find tenants.
Stephen Ludlow, the agent’s director, said: “If there is no rental demand for the property, the investor could see their yield fall off a cliff once the guarantee runs out.”
“A lot of investors have bought new-build flats in the UK on guaranteed rents and been disappointed with rental performance once the guarantee has expired,” Ludlow warned.
“But at least in the UK, most of these schemes are being marketed in large metropolitan areas with an active and researchable letting market.”
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