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Post by reeknralf on Feb 14, 2016 9:10:16 GMT
My understanding is that it is just like any other shareholder vote, and a simple majority is required. If 51% vote to sell, the house is sold and the spoils divided among the shareholders. If your share is worth less than you paid for it, you will lose money.
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Post by highlandtiger on Feb 14, 2016 9:14:39 GMT
Can anyone expand on what happens after 5 years and shareholders are required to vote to sell or not the property? Think this is how it reads?
What if 60% want sell and 40% not to sell? What if the property has fallen in value, etc,etc.
Thanks. It is explained quite well on the PP website, (always handy to check the website FAQ's before asking questions on here), propertypartner.co/howitworks/faqs#/incomeandexitExit after five years at market value On each fifth anniversary of the completion of the transaction on the platform, each investor in the property has an opportunity to sell their holdings at fair market value. This process is outlined as follows: (i) The property is inspected and valued by an independent Chartered Surveyor with reference to factors such as recent transactions and the condition of the property, adjusted for any potential liabilities that the SPV may have, such as taxation. This is then divided by the number of shares the SPV has issued (1,000,000 in each case) to create a per share market value. (ii) Investors that would like to exit at this point will be aggregated into a block which will be relisted on the Property Partner platform at the per share market value for up to 4 weeks. This process is similar to the initial crowdfunding of a New Listing. If this process is unsuccessful for whatever reason, Property Partner will commence proceedings to sell the underlying property. The property will be advertised for sale on the open market at the valuation determined by the Chartered Surveyor. Property Partner will administer this process and is obliged to act in the interests of investors to maximise financial return. On successful completion of the sale, all Investors in that property will be exited and net proceeds will be distributed to investors. Note that third party costs, such as legal fees, will reduce the proceeds available for distribution to investors, but Property Partner will not charge any fees or make any profit margin on the third party fees. It should be noted that if the underlying property is sold, this process will take as long as required and typically the sales process is between 3-4 months. However, there is no guarantee of this as the sale could take longer.As you can see, PP works a little differently from other similar companies, and they seem to be happy to keep properties long term if possible. Although I'm not sure what the difference is between, the SM and this block of shares from those who wish to exit. Perhaps PP will charge lower or no fees on this block to encourage buyers. I will drop an email to ask PP for clarification on this.
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hazellend
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Post by hazellend on Feb 14, 2016 16:27:56 GMT
I doubt any properties will be sold unless we have an unexpected house price boom.
Could property partner buy any unsold shares themselves at market value and then when the property starts its next 5 year cycle gradually sell them off again? This would mean they guarantee the rental management fee for another 5 years.
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ben
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Post by ben on Feb 14, 2016 21:04:36 GMT
I doubt any properties will be sold unless we have an unexpected house price boom. Could property partner buy any unsold shares themselves at market value and then when the property starts its next 5 year cycle gradually sell them off again? This would mean they guarantee the rental management fee for another 5 years. They have said that all properties are brought originally by them and if they fail to get funding then they will keep the rest themselfs, however I guess this current promotion they have demonstrates they do not want to do that at it looked likely they would have to have funds in both of them but the offer has reduced the amount they need to invest in each so would think it be unlikely they would want to do that , that being said in 4/5 years time they may be happy to as I guess most of their money now will be going on expansion
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Post by highlandtiger on Feb 18, 2016 20:15:10 GMT
Have you seen the new website. Hurts my ruddy eyes. Way too much white background. Come on PP sort it out.
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ben
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Post by ben on Feb 18, 2016 21:04:00 GMT
Have you seen the new website. Hurts my ruddy eyes. Way too much white background. Come on PP sort it out. must agree it is horrible not nice at all, see they have managed to get rid of one of the properties though now desperately trying to sell the second one
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j
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Penguins are very misunderstood!
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Post by j on Feb 24, 2016 20:33:59 GMT
Another 3 geared flats in London!! I'm giving that a miss too with only 9% discount. A property correction there can easily wipe out 9-10%
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ben
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Post by ben on Feb 24, 2016 21:19:55 GMT
Another 3 geared flats in London!! I'm giving that a miss too with only 9% discount. A property correction there can easily wipe out 9-10% agreee not intrested in that either , yield not good enough in case of value going down
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Post by highlandtiger on Feb 25, 2016 8:24:06 GMT
I have no intention of buying any more geared properties, (well not until after the fall out from the EU referendum has settled). I'm even seriously considering investing with HC, (due to the higher rental yields), and thus possibly breaking one of my rules of investing, where easy access and exit is required on my money.
IMO geared properties are NOT the way the move forward, and a downturn in house prices, (and there will be a downturn sometime in the near to medium future), will knock back growth in PP big time.
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hazellend
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Post by hazellend on Feb 25, 2016 9:56:50 GMT
Nice capital gain, I'm going in on this one. Will likely be heavily oversubscribed unlike the last two
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ben
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Post by ben on Feb 25, 2016 20:33:28 GMT
Nice capital gain, I'm going in on this one. Will likely be heavily oversubscribed unlike the last two if it happens then yes but if no capital gain very little rental yield, I prefer the ones that have ok rental yield and potential of a bit of property gain rather then the ones aimed at capital gains
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bigfoot12
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Post by bigfoot12 on Feb 26, 2016 9:09:25 GMT
I haven't been through the whole thread so sorry if this is a duplicate, but I was passing through London on the Tube and I saw Property Partner are advertising on it.
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hazellend
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Post by hazellend on Mar 7, 2016 17:57:20 GMT
Clapham property overscribed, 85% allocated per investor. Will probably disappear within minutes tomorrow.
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ben
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Post by ben on Mar 7, 2016 21:17:37 GMT
Clapham property overscribed, 85% allocated per investor. Will probably disappear within minutes tomorrow. That is good never went for this one though but glad to see with the last few struggling that the demand for decent properties is still there
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Post by neuro on Mar 8, 2016 7:09:36 GMT
Just started on PP a few weeks ago. With such deep discounting and revaluation within 3m, has anyone explored the investment strategy of buying and flipping shares after the major revaluation? For example, selling Clapham junction shares for 15-20% uplift in 3 months time and then repeat?
There seems to be minor (estimated?) revaluations going on every month aside from the actual RICS surveys?
Pretty impressed with the platform, it has to be said.
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