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Post by c0nfuzed on Apr 15, 2021 10:37:04 GMT
Why bother selling a single flat out of the block just a couple of months before the 5 year anniversary?
Surely they'll have more options to sell as a whole block which was the original intention. If that fails then they could consider splitting.
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Post by overthehill on Apr 15, 2021 16:22:28 GMT
The thing is there is no guarantee any property will need to be sold at the 5 year anniversary so selling to reduce voids is a parallel process to improve dividend performance. They've been swimming uphill since the 5 year exit process started but I would expect things to level out as time goes on. So they only need buyers to replace the sellers that want out to renew the property for another 5 years. It did happen recently for a couple of london properties in the same building which was a first I believe.
Once they start selling properties at or higher than the valuation then investor confidence will rise. They still haven't completed a single property yet since covid, you can hear the singing 'Why are we waiting' . Personally, I'm exiting.
I don't how it will play out between selling individual properties in a block or the whole block. The former has a higher return on paper but it involves a lot of sales and a lot of expenses and a lot of time but does the investor see any benefit ?
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