challenor property

Discussion in 'Finance, Property, Law' started by Trotsky, Jun 25, 2007.

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  1. Has anyone heard of a firm called Challenor Property in York?

    www.challenorproperty.com

    They source buy to let properties at a 15 % discount, you then get a 100% mortgage and use the equity to pay rental shortfall (or what ever if you are stupid) and later cash in on capital growth, there are a number of complaints on the web but also some good reviews, I would be greatful for some inside ARRSER advice.

    Trotsky
     
  2. 15% discount? How does that work? And what capital growth? And the complaints are from... anonymous web contributors... and the good reviews are from er, that'll be anonymous web contributors then!

    Stick the figures on here.....

    Litotes
     
  3. several people at my work have bought property through them and done quite nicely out of it. seems like a good idea if your not daft with it.

    from what ive understood of it, they buy properties in bulk from developers at a discount, so they can sell the cheaper. dont pay a deposit, you just pay them a finders fee.

    theres probs more to it than that, il ask around a bit more for you tomorrow, but even my dad has bought a couple through them and made a decent profit in doing so, i can assure you they are kosher.

    probably more useful if you are knowledgeable in such things, which im not.
     
  4. Ask yourself this - if it's such a good deal why would they let you in on it?
    They will be making money out of you. They are also pushing property on the Costa del Sol and Florida - steer clear there is massive oversupply of property in these areas and sub prime mortgage scandal unravelling. At the moment I wouldn't recommend property as an investment - Germany and South America being exceptions. The money has been made in BTL in the UK - put your cash elsewhere.

    Just notice their claims on Tax Free Income - I'll wager they are referring to remortgaging to pull cash out. Great when the market is rising - but remember all debt is repayable. Not really tax free just tax deferred.
     
  5. Please don't get mixed up with this shower! Chris - the guy that sends out all those deals is Chris Douglas who "doesn't speak to clients". Should tell you everything you need to know. If the deal doesn;t materialise - you will never get your money back! They have 3 CCJs registered against their name in the last 6 monthss. Absolute shower of rogues please save yourself the grief.
     
  6. Told you so :D

    Surface just about scratched - hang on to your hats. Buy gold and silver and weather the storm 8)
     
  7. You may be interested in this link: http://news.bbc.co.uk/1/hi/programmes/panorama/7227310.stm
    It was on last night, obviously some of the people that had been seen off were either just very gullible or just as thick as mince. Two of the investors highlighted have filed for bankruptcy having been left with massive debts from similar sounding schemes.

    Do your homework, search on rightmove to see how many similar properties in the same area are either for sale or far rent. I looked at one of these schemes with Blue Forces last year, the area I was looking at was flooded with 2 bed apartments. Non starter really.

    If you want to buy something as an investment, I would look at old Brown Fied sites, old factories, garages etc. Govn't policy is pushing development onto these sites as opposed to green field.
     
  8. Don't touch it with a bargepole. This type of scheme was on Panorama last night and there is currently a sig investigation ongoing in relation to fraud.

    In essence, property companies have been over-inflating the value of properties they wish to shift. They then entice 'investors' by offering a substantial 'discount' on this price. Investor accepts and applies for a mortgage based on the over-inflated value and as if the discount the property company is offering is actually the buyers contribution towards the property. Loan is approved by bank and paid into the solicitor managing the transaction (normally one in the pocket of the property company). Property company pays in the balance, deal is completed and then all the monies are paid back to the property company. End result is that the only party to have actually coughed up any money is the bank.

    Discounts are not illegal. The fraud elm is because:

    The bank is unaware that the buyer is not contributing towards the mortgage. The solicitor involved has a legal obligation to tell the bank but has failed to do so.

    The effect has been:

    'Investors' have brought over-priced property in a falling market. Besides the 'discount' they are normally seduced by the promise of fantastic rental returns (which never transpire). These investors now face bankruptcy.

    Of far more concern is that these inflated values are recorded as actual selling prices on the Land Registry, giving a false impression of the state of the property market. Worse still, is that these incorrect values are then used as 'benchmark values' for other properties coming onto the market thereby pushing up prices further.

    The only good news is that this fraud will be reflected in how far the property market now falls.
     
  9. Actual Programme

    Agree with CBO's view. Would recommend anybody who hasn't seen the prog. to watch it, definitely time well spent.

    As Heard it All Before said, some of the victims were rather unwise. One woman thought that she could rent out a 2 bed flat in Nottingham to students for £1,250 a month! The prog. really shows how important it is for buyers to do their homework.
     
  10. I never did buy on this scheme. I know someone who did and it appears to have gone ok so far.

    I made it clear that I was a copper and that I would only do an above board and transparent deal, this seemed to phase nobody and they were still keen to deal with me.

    Frankly I don't think now is the time and I am biding my time to see what happens with the rental market.

    Trotsky
     
  11. Don’t get involved.

    Buying property in bulk = low quality properties that developers couldn’t sell (btw - these properties are usually finished even more poorly that other new builds. If they don't sell 20% of a development in the first couple of weeks, the last properties are bodged so that they can protect their margins. Standard practice)

    So owning a low quality property, maybe in a poor location, at a time when property values are at a 30 year high in terms of valuation. And if values slowly decrease, the lower quality stuff may well move faster (in % terms).

    And that isn’t even taking into account the margin that they are making and the potential for hidden fees in these types of deals/structures

    In terms of the ‘I’m a copper….’.. he’s highly unlikely to say ‘it’s a fair cop, gov, this is a dodgy deal, I’ll just get the decent one out of the cupboard….’
     
  12. Nah, but I wouldn't expect the constant phone calls asking me if I am ready to do a deal either, IMHE a dodgy dealer will make slow excuses and leave in these circs.

    Trotsky
     

  13. True. Fair point.