Here is a quote from their website:
1. Potential for Off-Plan pre-completion gains
Buying off-plan offers investors the maximum potential for quick gain. Off-plan developments are usually discounted due to the speculative nature of the investment and typically grow strongly in value once the property and the surrounding development is completed. The investment is also leveraged. As an investor, you can enjoy a low deposit of just 20%, but receive capital growth on the full 100% of the property value.
Buy 4 x EUR250,000 (£170,000) apartments off plan for a deposit of £136,000
The total value of the 4 properties is £680,000
Property prices rise by 20% during the 2 year build period
The total value of the 4 properties is now £816,000, a profit of £136,000
This represents a 100% return on the original investment of £136,000 over 2 years. In many cases initial investors never have to fully complete on the properties. You are free to sell on before they are fully completed.
Not only illegal but thoroughly misleading.
1) Agency fees to sell at 7% + IVA (8.12%)
2) Legal fees of 1% in and 1% out + IVA
3) Capital gains tax of 18% on the gain?
So, let’s see:
1) Agency fee = 66,259£
2) Legal fees = 18,931£
3) Tax = 24,480£
Total expenditure 109,670£
So, actual profit of 26,330£ on a potential exposure (if forced to complete, so add 12%) of 761,600£.
Madness, utter madness.