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Thoughts on a new investment product

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Is the idea like this one:

It was pitched on shark tank some time ago. That video was uploaded this month but I think it was pitched 3 years ago or so. Interestingly, his company was acquired later on. The person himself though may not have been able to sell the company well. The sharks were concerned with liquidity problems. Mark Cuban hated the idea. They were also concerned generally with the fact that you can just go buy a REIT and have huge liquidity so why would anyone invest in the model.
 
basilio said:
No. Let's be clear. The established objective of the scheme is to punt on the continued appreciation of prime land based property (ie no apartments) located in upper middle class Melbourne suburbs. Brighton, Hawthorn, Surrey Hills whatever. The theory is that as the properties are purchased there will be a regular valuation to show investors how much capital gain they are (potentially) making. They would blow themselves up if they started buying highyield properties in Melton.
Click to expand...

You're right on the townhouses/apartments thing, but as for the suburb choice, the wording they use is:
"a portfolio of residential properties located in established suburbs in metropolitan Melbourne"

They also say:
"The funds objective is to acquire properties that have the capacity to produce capital returns over the medium to long term."

It doesn't say anything about high-end suburbs, only suburbs that are in metro Melbourne, not under construction and "have the capacity to produce capital returns"... So that means any suburb in Melbourne that is established - Melton, Frankston, Dandenong, Sunshine all qualify for this.
 
Thanks Klogg. Perhaps there are different statements in different parts of the website. I saw these ones.

"The House Buyers United Fund enables like-minded residential property investors to gain exposure to quality residential properties situated in prime locations in Melbourne's upper-end-of-the-market suburbs that have been carefully selected for their perceived potential for secure long-term capital growth."
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The Fund that ...
DOES NOT COMPROMISE
on the quality of the residential properties it carefully selects from those located in prime positions in upper-end-of-the-market Melbourne suburbs."

http://housebuyersunited.com.au/hbufund/how-hbu-works/

My understanding is the focus is solely on prime property in the upper end of the market suburbs. Whether that is the best strategy is another question.
 
basilio said:
Thanks Klogg. Perhaps there are different statements in different parts of the website. I saw these ones.

"The House Buyers United Fund enables like-minded residential property investors to gain exposure to quality residential properties situated in prime locations in Melbourne's upper-end-of-the-market suburbs that have been carefully selected for their perceived potential for secure long-term capital growth."
Click to expand...

That's the website. The Product Disclosure Statement says something else...
ASIC review the PDS, not their website.
 
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