UK Landlord Forum / Life

I became a member of the Property Association in June 05 at a cost of £1600 plus VAT.  The Property Association make deals with house builders and sell the off plan flat/houses to their members.  They do various deals around the country and overseas.  Their usual trick is to tell their members via very convincing emails about various developments, and leading people to believe that there is an instant equity.  I was foolish enough to believe them and purchased an off plan 2 bedroom flat near Newcastle, in June 05, to be completed in July 06. There was 12 flats for sale and all were bought by members.
The initial info from them was also mentioning that a similar flat had sold in the area for £134,000, so I thought we were getting a very good deal with our purchase!  Because there was no Post Codes I could not research anything on the Internet.  We were also told that the flat was 4 miles from Newcastle and in a regeneration area.
When I made my 1st trip there shortly before completion, I had a shock.  The flat was nearly 8 miles from Newcastle, not 4, and in a dump and depressing area.
Our flat has now been on the market since completion, and is now on the market for less than the purchase price!!! Furthermore, in order to purchase through the Property Association, there is also a 'finders' fee of 2%.  All in all, we paid nearly £5000.00 in fees to purchase a flat that is not worth today the price we paid 2 years ago!
My advice: Stay well clear of the Property Association.  They make their millions by robbing, lying and tricking people, and charging high fees for the privilege!!!!!!!!!  Do not approach, they are con artists!!
(If there are any TPA Members who have purchased a property through TPA, I would be glad to hear their views)

Wow, Dan. I'm really sorry to hear that. Thanks for sharing your story. Do you mind if I publish it on the main site? I think there's a lot of useful information in your post.

I've always been curious about property association. I must admit, i've been tempted to buy offplan properties by developers plenty of times, based on the similar sales pitch you received.

Have you had any interest in the property yet? Do you think it would be worth letting the property? Would the figures stack up?

And out of curiosity, can you clairfy which property association company you delt with?

Dan, that's terrible. I know what it's like to be excited about what seems to be a fantastic investment, only to come out in loss and disappointment. However it's a rough experience to really learn from, and without a doubt to share with others who take part in such similar investments.

Have you spoken to a lawyer? You never know maybe you might just have reason to sue TPA. I realise equity can not be guarenteed, however maybe there's a clause or something in the contract which has been breached.

Look into it, and let us know. I'm curious to know if their asses can be sued or something

This is where the internet is so powerful - in can make us stay clear of such rogues.

Thanks Dan - sorry to hear of the problems - I hope you can sell the house.

cheers

simhar
web: Properite Landlord Software http://www.properite.co.uk

Dan9054,
Another fat shit head developer story, why are they allowed to get away with it, surely it doesnt save the government money, * does it *

Sorry to hear your woe buddy, A hard leason to learn from , but its always the same ,   I woud never look at any investment where there was no or  litte risk involved.  People who tell you there is no risk and the returns are great are talking out there backsides.  If the deal was so good they would, through a difo company sell the flats , themselves.
As you say * our * was there two of you who went in on the deal !.  sorry again mate.

Badger