3 in 1 Strategy, not that happy

Got a note from Serliana about launch of a new property at a place called Denholm court in Essex. Its quite attractive because using the deal structure its possible to get ownership of it at quite a low cost. I discussed with them and they sent me a proposal to buy Park Central, Adelaide Wharf and Denholm Court. I had a read through but figures didn’t add up to me (also it was on a spreadsheet that had been used for something else because it had another property on it that had been zeroised).

I spoke to them and they sent me a note apologising and suggesting that in order to afford it I would need to either borrow some more money or use some of the cash I’d put aside for the extension to my current house. I wasn’t too happy about either of these suggestions, in their literature they always emphasise the lifestyle elements of property investment and the need to “cashflow” ie ensure that you have enough money put aside to cover the investment and the additional costs that accompany it. Yet here they are suggesting that I impact my lifestyle by stopping the extension or borrow more money which is going to put my cashflow at risk! It’s not like I’m even been offered a special rate for buying 3 in one go.

Important lesson if you don’t think you can afford it and/or you feel uncomfortable with it then don’t do it.