Today's Adventure in the Biz Opp Jungle:
'In which Charlie is MASSIVELY grumpy and depressed about pretty much everything, gets annoyed by Challenor's behaviour, and offers a word of advice about Whitney and Inside Track.'
Hi,
At New Year, I told myself:
"You've got to be more positive this year. Look for the genuine money makers, believe in them, and don't get too depressed about the big pile of rubbish that's out there, rotting people's money".
Oh, yes, I was full of beans.
And whisky.
But this week, I don't know...
The country is under water again. People are going on the news and simply saying the word "recession"
over and over. I feel like someone's pouring tar into my brain.
Then there's that professor from Cardiff who's been going around saying he's got a scientific formula for working out the most depressing day of the year.
He's turned up EVERY year since 2005 to announce the special date.
This year it was Monday. The one you've just had.
I reckon it would be LESS depressing if he just shut the hell up about it.
I'm sure his blatant self-promotion makes him VERY happy at this time of year. At least he gets into the papers again. Berk.
While he's merrily feeding off the nation's misery, I then go and stumble upon this ruddy awful property opportunity that's fleeced some of my readers.
Talk about pile of rubbish... there are seagulls flying around this one, cawing and pooing...
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Why I think Challenor's a bit smelly
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I've had quite a few emails about Challenor's property finding opportunity. Like this one:
"I put down over £6000 on a property in August last year, but never heard anymore from Challenor, I rang them just before Christmas to find out what was going on as I did not hear from them.
The email continues...
"The person I spoke to 'Martin Nelson' tried to sell me another property as they were having problems with the developer of the property I choose, I told him I did not want that property, and would like my money back if they could not provide me with the property I choose.
"I was then told that they do not refund money. I am going to go to York to their head office as soon as I can arrange this to confront them about my money."
Challenor claims that they will help you "acquire as much property as you want", using techniques that until now have been kept for the "super-rich property tycoons".
They say that every property you get should have a minimum of 15% equity in them from day one.
In return for this you pay them a whopping great finder's fee.
You also fork out for all the usual legal costs. But dig deeper online and you'll see lots people claiming that the properties don't sell, and the rental projections are totally unrealistic.
Whatever their skills in finding properties, the biggest problem seems to be that they don't treat their customers very well.
The sales team are VERY pushy. Worse, at least one other person I've read about is taking legal action because Challenor didn't offer the refund it promises within 30 days.
I'd put a peg on your nose and walk away from this.
Sigh.
Considering the state of the property market right now, I'd be careful in general with these kinds of opportunities... even if the companies are above board.
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Especially watch out for "new build" schemes
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Russ Whitney and Inside Track often encourage you to get into "buy to let" business opps. They sound very attractive.
Nice juicy returns and your own little UK property empire. Lovely jubbly. Let's buy a Jag.
But heed the warning from property industry experts. They advise you to stay well away from the "new-build off-plan property" that companies like Inside Track recommend.
I don't mean to chuck my lot in with the mainstream press. And I'm not trying to rain on any parades, spit in anyone's milk, or cry into anyone's tiny fire.
But there are figures to back this up. FIGURES, I tell you!
In the good old days, you could make lots of money from new builds. They were all the rage and rightly so. In December 2000 "new build" prices had risen by an average of 17.7% a year, compared to a 10.1% average for property overall.
Not anymore.
There are too many of these big ugly apartment blocks cropping up around towns and cities, and people don't want them. In December 2006, the average cost of a new flat DROPPED by 0.5%, while overall property prices rose 8.5%.
Nothing's happened in the past year to change that. So be wary. Be good. And if you can't be good be careful. Or warily careful in a good way.
Yes, property investment brokers get big fat discounts when they buy in bulk - say a whole block of flats. But the fact is, the more buy-to-let landlords who invest in it, the lower resale or rental values will be when it's done.
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Moan moan moan
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Right. Sorry about all the above. I just re-read this and I sound like Eyeore from Winnie the Pooh. You know, the depressed donkey.
Hey, and if I was REALLY that down about the property market I wouldn't be buying a house right now.
I'll cheer up soon. Perhaps I'll go and listen to some very loud Bob Dylan, buy some fish, eat some cheese. These things usually work.
Then and get back to you with something that REALLY works.
Oh, and there's some fresh updates on the website.
If you've missed any emails, news or reviews in the past few weeks (i.e. you've NOT been reading my emails, HOW COULD YOU?) then go here:
http://www.bizoppjungle.com
Later alligator
Charlie Wright
The Biz Opp Jungle.