Thoughts re investing in workspaces?

Discussion in 'General Property Investment Discussion' started by CarterUSM, Mar 22, 2017.

  1. CarterUSM

    CarterUSM New Member

    Hi

    Quite often on my Facebook feed, I have advertisements from the Move Channel, offering the chance to invest in co-working spaces from as little as £20k, and offering yields of 8% upwards. Whilst sounding very promising, there’s a ring of ‘too good to be true’ about it.

    At the moment I am looking to invest about £70k in property of some kind, and at the moment my first choice would be an apartment in Berlin. My intention is for long-term (10 years) capital gain; any net rental income would be seen as a bonus.

    Does anyone have any opinions or experiences regarding investing in individual co-working space projects as advertised by the Move Channel? How favourably would the scope for relative capital gain compare with my proposed investment in Berlin, and how do the two options compare with regard to risk?

    If I did wish to invest in co-working spaces, would I be better off simply buying shares in companies which offered them instead, rather than making a direct large investment into individual products?

    Finally – sorry, I know I’m asking a lot, but does anyone have any suggestions as to whether I should be investing my £70k in other investments which offer more scope for capital growth – be they individual funds/shares, particular market sectors, etc.?

    Very many thanks in anticipation of your assistance.
     
  2. Michelle Barringer

    Michelle Barringer Member Forum Partner

    Hello, I am not familiar with the details of the move channel offer - but would suggest that you need to do thorough due diligence on the investment including what assets are backing the investment, do you have any charge over the assets, what your exit strategy would be and how the returns are funded - what level of occupancy would they need to service the returns and if there is a shortfall what contingency they have. If you would like any further help feel free to PM me - Thanks Michelle
     
  3. kchiggs

    kchiggs Member

    Well, wework (coworking space) is worth 20 billion now, so there are a lot of startups in this space now.. ROI in startup world is ridiculous can range form 10% p.a to 2.5 times your original investment over four years. Risk wise depends on stage of company but risk is usually figured at 50% chance of loss of all capital.
     
  4. Longterminvestor

    Longterminvestor Administrator

    I tend to find that with any investment, the higher the yield the lower the potential capital gain - they don't normally occur at the same time (well not significant capital gains on a high yielding asset). I view a high yield as compensation for a reduced prospect of capital again. I am not familiar with the scheme you are considering.
     
  5. kchiggs

    kchiggs Member

    These are usually four-years before you see a return deals.
     
  6. lookinginvest

    lookinginvest Member

    I read somewhere that these schemes use the term "assured" as opposed to "guaranteed" - then again we all know that nothing is guaranteed in the world of investment?
     
  7. kchiggs

    kchiggs Member

    I'm not familiar with guaranteed and assured investments unless your tlaking about gilts. Capital is at risk in startup investments, it is highly risked but then the returns on success are very good. The greater the risk the greater reward is offered.
     
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