Certainly Wealth- sounds too good to be true?

Saw this link in PC sponsored links: Certainty Wealth

$300k investment and 25% return in 1 year. Guaranteed capital.

That makes $75k PA. Does this mean that I can retire now?

 

It's on the Internet so it must be true. Let me know how you go.

 

Looked at that link
Its good but not as good as it first looks
1 capital is guaranteed not return
2 there is borrowing hence there is risk
3 it looks like a development hence there is risk
I prefer lower risk lower returns
Leased property
A net yield of 9pc funded at 4pc returns 20pc on capital

 

There's a lot of similar funds around - which will offer 10%-30% returns p.a, naturally based on a risk profile. You need to be careful with the terms of the lend, as a lot will specify a % return at completion of project - which may dilute the return to subpar results. As an example:

'15% return over 12 months' - terms noting completion of project, estimate completion date 12 months.

In reality the project takes 3 years for final sell down of the end development - providing a 5% p.a yield for an investment which has a higher risk profile compared to other asset classes.