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I'm seeking some information about a company a friend of mine is thinking of investing into to purchase an investment property in Auckland. The company is called 'Blue Chip NZ' and the deal they are offering seems too good to be true to me. It would mean my friends tying up a considerable amount of equity from their home for a period of 4 years. What do they get? Around $145 pw. The company sets the whole thing up, pays all the cost involved including setting up a Family Trust for my friends. They also look after all ongoing cost incurred with property maintanence, rates, strata costs etc. When the 4 years is up, my friends will get a guaranteed(?) lump sum payout, plus the lean on their home removed...if they want that. Of course there is always the option of rolling it over into another apartment. The company obviously gets the CG on the flat. The apartment they are purchasing will be in my friends name. What I really want to know is...are these guys legit and if they are...is this worth tying up a large amount of the equity in someones home (a freehold home , I might add)? It really concerns me as these people are retired and have only recently gotten on 'top' of things with their finances. The $145 pw looks pretty appealling to them at this stage and I'm afraid that's all they are focusing on.
Any feedback would be greatly appreciated.
Any feedback would be greatly appreciated.
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