ebs property bonds

O

ocean

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im thinking of getting property bonds with ebs im investing 20000k the advisor told me all going well i might get 27k after five years can anyone tell me if thats good or should i do something else
thanks
 
I'm never a fan of projections on investments. A return of €27,000 after 5 years on €20,000 represents an annual return of around 6%.

Dig deeper. What basis has the advisor got for projecting a return of 6% per annum? What are the charges? What exactly does it invest in?
 
When you say adviser do you mean someone who works in EBS or a broker. An EBS employee isnt going to be impartial and neither is a broker who has arrangements with EBS.
 
It has to be an EBS employee and the product is underwritten by Irish Life.

There are early exit penalties of 5/5/5/3/1% in years 1/2/3/4/5 respectively. This means that the product is front end loaded and there will be commission taken up-front.

The annual management chage is 1.3% + there is an additional annual charge of 1.1% for the part of the property portfolio that is not managed by Irish Life.

If things don't turn out to plan (ie. they can't sell properties to pay customers that want to cash in,) Irish Life reserve the right to make you wait 6 months for your money or an additional charge of up to 7% .

You should also check out if there is gearing on the product.
 
Did your adviser suggest any other property funds to you, e.g. from Hibernian, Friends First, etc. If not, why not?, and why does he /she think the EBS property fund (which is the Irish Life Property Fund with an EBS label on it) is better than the others (i.e. is it better in terms of greater return or lower risk)? Is the estimate of the investment being worth 27,000 in 5 years plucked from the air or based on past performance of the fund or on what? Is the 7 grand profit you hope to get before tax or after tax? If it’s gross, you will pay 23% tax on encashment, giving you a profit of 5,390. Could you get a better net return elsewhere, for the same or lower risk? Have you paid off your mortgage? Using your 20 grand to pay off some of your mortgage is risk-free property investing. Calculate the return you would get by paying off your mortgage and compare it to the estimated return on the property bond, before you make any decisions.
 
What countries do these bonds cover?

Buying now in the US and Ireland next year would certainly set you up for some rewards in the long term.
 
thanks folks, yes kruger they are irish life and yes now that u have pointed these things out i guess your right, these bonds slinky were asia and china, there is so much hidden from the investor especially some one thats not familiar its so annoying. i have about 60 k available and i honestly havent a clue where to go from here im puzzled and i dont trust these guys can anyone suggest what to do. i dont mind risk and time is pretty ok with me too.
thanks again
 
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