travolta
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Post by travolta on Jul 15, 2019 10:32:45 GMT
More fees , any opinions?
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rick24
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Post by rick24 on Jul 15, 2019 10:35:59 GMT
Would be nice to see a cost-free exit option.
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snowmobile
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Post by snowmobile on Jul 15, 2019 10:40:02 GMT
Not acceptable as far as I am concerned I'm already trying to sell but this is going to make it extremely difficult. I did not sign up to these new terms and I'll be making it very clear I do not wish to accept them. I don't see how they can deem acceptance by continued use of the platform. Does that apply even if just logging on to make withdrawals? There needs to be some sort of opt out procedure for existing investors who do not wish to accept the new terms.
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hazellend
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Post by hazellend on Jul 15, 2019 10:41:38 GMT
Bloody ridiculous. So short sighted. Their fees will eat up 30% of my net yield. Just need to wait for the 5 year mark now and sell.
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Post by george on Jul 15, 2019 10:42:16 GMT
Looks like the effective result of this is a 0.5% increase in the purchase price (0.5% reduction in "sourcing fee" but 1% additional fee to "central fund"), and a reduction in dividends of between around 20% - 80% depending on the property (based off the 1.2% of RICS value AUM fee).
Personally I'm not surprised - their fees were too heavily waited on new entries coming on to the platform and they simply haven't been managing to do much of that in the last year or 2.
Overall though, I think this significantly reduces the appeal of the platform. I wonder how much of an additional discount the secondary market will price in for this change in fees once it reopens?
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beh
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Post by beh on Jul 15, 2019 10:46:52 GMT
A bit cheeky to have both an AUM and an account fee?
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mrk
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Post by mrk on Jul 15, 2019 10:53:22 GMT
Very disappointing bait and switch tactics. I would not have invested in the first place if I knew these were going to be the conditions.
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hazellend
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Post by hazellend on Jul 15, 2019 11:08:04 GMT
Looks like they are trying to encourage existing investors to sell properties at the 5 year mark so they can focus more on development loans. Lendy have put me off development loans forever so I will be trying to exit completely but looks like I’ll be tied in for a couple more years as I would have to discount significantly to exit now.
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hazellend
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Post by hazellend on Jul 15, 2019 11:09:58 GMT
Also, after property moose I see this as a death of equity crowdfunding for property. The new comer British pearl will probably go the same way so I’ll be avoiding
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Post by sayyestocress on Jul 15, 2019 11:25:30 GMT
I'm glad I started selling off my pp holdings a few months ago now (currently at less than 20% of my peak investment level). The new fees look like they may make a significant dent in the monthly dividends. I'm not surprised they need to increase fees as none of the available accounts show a profitable business, although the last accounts go back to end of 2017 iirc.
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IFISAcava
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Post by IFISAcava on Jul 15, 2019 11:30:03 GMT
Just better hope that in couple of years when most of the properties are up for selling the market hasn't tanked (yes, I'm looking at you, No-deal Brexit).
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Post by scepticalinvestor on Jul 15, 2019 11:31:27 GMT
The email says that investors are "deemed" to have accepted the new T&Cs if they use the platform on or after 5th August. Does anyone know what the legal perspective is for those of us who reject the changes?
I'd be happy if they froze my account and allowed me access solely to sell existing holdings.
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Post by scepticalinvestor on Jul 15, 2019 11:39:26 GMT
Not acceptable as far as I am concerned I'm already trying to sell but this is going to make it extremely difficult. I did not sign up to these new terms and I'll be making it very clear I do not wish to accept them. I don't see how they can deem acceptance by continued use of the platform. Does that apply even if just logging on to make withdrawals? There needs to be some sort of opt out procedure for existing investors who do not wish to accept the new terms. The same. I've sent them a message asking what my options are if I do not accept the new T&Cs. I'm assuming they won't just say "don't login to your account from 5 August"! I hope they have to go investors like us some option to sell our investments past August 5.
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IFISAcava
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Post by IFISAcava on Jul 15, 2019 11:43:16 GMT
Not acceptable as far as I am concerned I'm already trying to sell but this is going to make it extremely difficult. I did not sign up to these new terms and I'll be making it very clear I do not wish to accept them. I don't see how they can deem acceptance by continued use of the platform. Does that apply even if just logging on to make withdrawals? There needs to be some sort of opt out procedure for existing investors who do not wish to accept the new terms. The same. I've sent them a message asking what my options are if I do not accept the new T&Cs. I'm assuming they won't just say "don't login to your account from 5 August"! I hope they have to go investors like us some option to sell our investments past August 5. I rather suspect the answer will be to sell on the SM
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IFISAcava
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Post by IFISAcava on Jul 15, 2019 11:43:57 GMT
Would be nice to see a cost-free exit option. There is already such a thing - selling on the SM
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