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Post by sayyestocress on Jun 21, 2018 13:57:11 GMT
One's a house in hounslow and the other's a flat in Hornchurch,they're at the older end of the PP spectrum. The tenancies are coming to an end and PP reckon they are more valuable than the SM values them so have given us to vote to market them for sale instead of find new tenants as they may be empty for a while anyway. 75% need to vote to sell to put them on the market. The vote ended a couple of days ago but the result hasn't been communicated as yet. just received emails that on the 3 properties that I am invested the vote has been to sell the properties. I personally voted against since i believe that in an ideal world all the properties should remain on the platform forever and the secondary market should represent the most efficient and cost effective way to sell your investment. Also, i don't think the discount to valuation was so large to require an anticipated exit, the tenancies probably could have just been renewed and there wasn't a particular negative market view on the sector or region to force an early exit The cynic in me thinks they want to offload the older, un-geared lower dividend, single property investments that they've trended away from since the early days. I assume they are less efficient (i.e. less profitable) to manage and are less desirable on the SM such that they will be generating lower fees from the re-sales of shares. Of course they won't tell us that, but of course I might be spouting total BS. I voted sell for my two, as did the vast majority according to the results. I wanted to crystalise a gain on properties that may drop in value if London suffers with Brexit, whilst testing PP's ability to make gains on property, something PM (who I've tried to exit from) have struggled with. I suppose the biggest problem with investing as a crowd is your opinion can get drowned out by majority who disagree with you.
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IFISAcava
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Post by IFISAcava on Jun 21, 2018 14:04:18 GMT
I'm quite happy to book some capital gains early versus ongoing dividends, for tax balancing reasons.
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hazellend
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Post by hazellend on Jun 21, 2018 18:19:06 GMT
I'm quite happy to book some capital gains early versus ongoing dividends, for tax balancing reasons. Me too. That’s one of the advantages of this type of property investing
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bigfoot12
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Post by bigfoot12 on Jun 22, 2018 6:31:59 GMT
I'm quite happy to book some capital gains early versus ongoing dividends, for tax balancing reasons. Me too. That’s one of the advantages of this type of property investing [aside to hazellend] AIUI if you make capital gains this year (on PP) and capital losses (on PM) they will net off before you carry the net balance of your losses forward.
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IFISAcava
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Post by IFISAcava on Jun 22, 2018 6:37:20 GMT
Me too. That’s one of the advantages of this type of property investing [aside to hazellend ] AIUI if you make capital gains this year (on PP) and capital losses (on PM) they will net off before you carry the net balance of your losses forward. I understood that you don't have to offset losses until you exceed the personal allowance - but that might only be when carrying forward losses from a given tax year as you say. Will check for my own records!
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hazellend
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Post by hazellend on Jun 22, 2018 6:53:35 GMT
[aside to hazellend ] AIUI if you make capital gains this year (on PP) and capital losses (on PM) they will net off before you carry the net balance of your losses forward. I understood that you don't have to offset losses until you exceed the personal allowance - but that might only be when carrying forward losses from a given tax year as you say. Will check for my own records! Please let me know when you have worked it out.
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Post by peerlessperil on Jun 22, 2018 7:20:42 GMT
Sadly I too am losing my enthusiasm for Property Partner....for two reasons:
1. The proposed fee increases 2. Property Partner has started to propose the sale of existing properties so they don't get to the 5yr point.
The latter is of course subject to a 75% vote threshold, so fair enough you might think. However it amplifies an existing reservation I have about the model - that you can get forced to sell against your wishes and generate a capital gain when you don't want to. I've been picking up properties at steep discounts to the "official" valuation as a yield enhancement strategy, and would have intended to hold through the 5 year roll (& buy more) so that there is no stamp duty to amortise over the 2nd 5yr period. Being forced to sell in short order, albeit for a short term profit, breaks my model. Whilst PP may offer to reinvest the capital "fee free", it still means I'm back into amortising the stamp duty.
Sadly my fellow investors have a much shorter time horizon. The fees & taxes are just too high to play property flipping these days.
Of course PP need to recycle the capital to keep the hamster wheel turning, and they do need to reach break-even.
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neal
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Post by neal on Jun 29, 2018 10:29:46 GMT
Yep, I'm about done with PP. I think we already pay more than enough in fees and with the end of auto invest, I can see the days of only getting 4% of my intended investment coming back. That does not make the platform attractive to me.
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hazellend
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Post by hazellend on Jun 29, 2018 10:55:50 GMT
What we need is a good property crash so PP can pick up some high quality high yields
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SteveT
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Post by SteveT on Aug 30, 2018 7:23:49 GMT
A quick look at how recent new properties are (not) filling suggests PP have succeeded in bunging up the golden egg-laying goose ...
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ding
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Post by ding on Aug 30, 2018 8:49:53 GMT
A quick look at how recent new properties are (not) filling suggests PP have succeeded in bunging up the golden egg-laying goose ...
"Where applicable, from 1 July 2018 we'll charge a Sourcing Fee to cover these costs, which may be up to 2% + VAT of purchase price." The 3 properties available appear to have 0% sourcing fee applied. Though if you expand "purchase costs" sourcing is a line item with stamp duty etc.
So maybe people are not deploying funds for other reasons. Personally I've not purchased any property this year. I got a bit carried away last with the cashback incentives!
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Post by sayyestocress on Aug 30, 2018 10:45:51 GMT
The death of immediate income may be to blame for the slow take up. If correct we may see an influx towards the funding deadline. It's curious they have launched the loan bond with several equity listings yet to fill.
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beh
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Post by beh on Aug 30, 2018 16:43:17 GMT
Hadn't really thought about the immediate income thing but the larger properties do have very long funding periods while also seeming to take longer to complete.
If/when Huddersfield doesn't get funded, I'm guessing the £1m raised from that will flow to the other 2 properties. It is frustrating having money tied up from pre-order only for it to go nowhere.
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hazellend
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Post by hazellend on Aug 30, 2018 18:58:46 GMT
Hadn't really thought about the immediate income thing but the larger properties do have very long funding periods while also seeming to take longer to complete. If/when Huddersfield doesn't get funded, I'm guessing the £1m raised from that will flow to the other 2 properties. It is frustrating having money tied up from pre-order only for it to go nowhere. What are your thoughts on the social houses? I reserved for it then cancelled as nothing is filling anyway. Seems like a good inflation protected return. I’m not an income investor and like to focus on total return
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beh
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Post by beh on Sept 10, 2018 10:18:18 GMT
What are your thoughts on the social houses? I reserved for it then cancelled as nothing is filling anyway. Seems like a good inflation protected return. I’m not an income investor and like to focus on total return I think the social houses look ok, a nice change from PBSA stuff. Increasingly feeling I don't properly understand some of the more recent investments. Was more comfortable back when it was mostly just houses or a few flats whereas now can seem a bit too far removed when it involves another party or "Acquired/Sourced and managed by".
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