row
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Post by row on Feb 19, 2015 11:55:14 GMT
I have today been advised that the cost of selling a housecrowd share is £50 +vat. So i have 2 shares i wish to sell (1 share = £1000). Does anyone think this is a bit excessive?
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j
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Penguins are very misunderstood!
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Post by j on Feb 19, 2015 13:33:31 GMT
I have today been advised that the cost of selling a housecrowd share is £50 +vat. So i have 2 shares i wish to sell (1 share = £1000). Does anyone think this is a bit excessive? Did they advise what level of work/effort on their part in finding buyers for the shares? If the effort justifies the fees, then yes it's fair, if not, it would be excessive @ 6% which is about a year's interest worth.
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mikeb
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Post by mikeb on Feb 19, 2015 19:04:31 GMT
Last time I was aware of someone trying to sell shares, it was a round-robin email to all investors saying "We have someone who wants to sell shares in HCP0XX, if you are interested shout now".
I don't think there's a formal process like a secondary market on the website yet. Apart from issuing a new share certificate, what else would be involved?
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shimself
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Post by shimself on Feb 19, 2015 21:38:06 GMT
I do hope it's not £50 each, that would be exploitative.
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row
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Post by row on Feb 19, 2015 22:14:23 GMT
It is £50 +vat for each of my 2 shares.
"there is alot of legal requirements and paperwork involved in transferring shares."
I told them not to bother...
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shimself
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Post by shimself on Feb 20, 2015 12:02:35 GMT
I've emailed them a bollocking, you never know
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pikestaff
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Post by pikestaff on Feb 21, 2015 7:50:36 GMT
It seems a little on the high side, but it's probably a fair reflection of their costs if it's a manual process. Whether it's a good idea to look to recover your costs on this type of thing is another matter.
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bigfoot12
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Post by bigfoot12 on Feb 21, 2015 9:57:34 GMT
And to be fair they did emphasise that this is long term investment with the possibility to exit early if needed. They will need to get much bigger before it will be worth automating that sort of process.
I don't think the per share charge is acceptable though, I would think that selling 2 shares is the same amount of work as selling 1.
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adrianc
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Post by adrianc on Feb 21, 2015 12:56:26 GMT
I would think that selling 2 shares is the same amount of work as selling 1. ...assuming it's the same buyer... But if it isn't the same buyer, or if the two shares are in different projects, then the paperwork needs to be drawn up twice.
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shimself
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Post by shimself on Feb 21, 2015 19:56:24 GMT
well ok but when they set each SPV up they have to write certificates and register entries for about 50 people. Which they do about twice a week now. Do you believe for an instant that they are spending £5000 a week £250,000 a year on this bit of admin? Me neither
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adrianc
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Post by adrianc on Feb 22, 2015 20:52:43 GMT
Oh, don't get me wrong - I'm making no comment on the appropriateness or otherwise of a £50 admin fee. I'm merely pointing out that selling two shares may involve extra work over selling one.
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starfished
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Post by starfished on Feb 22, 2015 21:20:39 GMT
well ok but when they set each SPV up they have to write certificates and register entries for about 50 people. Which they do about twice a week now. Do you believe for an instant that they are spending £5000 a week £250,000 a year on this bit of admin? Me neither Well the fee is really three things (i) an approx. indication of actual cost + (ii) opportunity/distraction cost + (iii) to what extent or not they want to incentivise the behaviour Obviously they have decided they don't want to be spending their time transferring shares around on old transactions (and to be fair I think that is well within their right if that is their business model). It just would have been more honest and less bad press for them to say no secondary market and refuse any requests.
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agent69
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Post by agent69 on Feb 23, 2015 14:02:54 GMT
Makes £25 to sell on the secondary market at TC seem like a bargain.
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adrianc
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Post by adrianc on Feb 23, 2015 15:29:03 GMT
It just would have been more honest and less bad press for them to say no secondary market and refuse any requests. The lack of an SM of any kind would, though, have almost certainly proved a big disincentive to sales in the first place.
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row
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Post by row on Feb 24, 2015 13:12:36 GMT
Well, not surprisingly, i have decided against selling my shares. I just will not invest anymore there. Especially as assetz is bringing in a similar type of investment, which in my eyes is a better deal
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