Maestro
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Post by Maestro on Jul 19, 2016 19:00:50 GMT
Welcome to Brexit land.
They have a good platform, and a good product. But property investments have fallen off a cliff, as observed by the discounts available to latest valuations on PP. They may have grown headcount too fast, as their model relies on taking small margin off new investments so good to see them tightening belt. I have mostly sold my investment on PP due to their London/South East concentration, but I will start investing again when I start to see 30% discount to peak valuations. Avg drop of 10-15% on residential property will get us there due to leverage involved. Hope I can get back in before next up turn.
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beh
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Post by beh on Jul 19, 2016 19:56:35 GMT
To say property has fallen off a cliff is a bit of an overstatement, nobody knows for sure yet what will happen.
It's not surprising that someone looking to make a quick exit will likely be happy to sell for around what they originally paid ignoring recent valuations.
I agree with you on the diversity of locations offered, would like to see a few more properties from up North (Manchester, Liverpool, Leeds, York).
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 19, 2016 20:10:55 GMT
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bigfoot12
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Post by bigfoot12 on Jul 19, 2016 20:11:43 GMT
To say property has fallen off a cliff is a bit of an overstatement, nobody knows for sure yet what will happen. It's not surprising that someone looking to make a quick exit will likely be happy to sell for around what they originally paid ignoring recent valuations. I agree with you on the diversity of locations offered, would like to see a few more properties from up North (Manchester, Liverpool, Leeds, York). I agree. I went through the list on Sunday and only one property was offered at a discount to the original price and that was 0.1%
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hazellend
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Post by hazellend on Jul 19, 2016 20:39:38 GMT
Not sure why discount to original price matters. It is the discount to market value and yield I am interested in.
I like the sound of the bidding engine they mention.
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hazellend
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Post by hazellend on Jul 19, 2016 20:40:18 GMT
I like the sound of the bidding engine they mention.
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beh
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Post by beh on Jul 19, 2016 20:57:54 GMT
Not sure why discount to original price matters. When selling something you perhaps haven't held for long, psychologically, the original purchase price is going to be a stronger anchor than a "market" value that won't be truly tested for another few years.
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bigfoot12
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Post by bigfoot12 on Jul 19, 2016 21:09:24 GMT
Not sure why discount to original price matters. When selling something you perhaps haven't held for long, psychologically, the original purchase price is going to be a stronger anchor than a "market" value that won't be truly tested for another few years. And to add to that, what is more likely to reflect the actual value, the price PP paid a few months ago, or a valuation by an estate agent? Anyone who has lent secured against property valuations in the last few years will have seen how far wrong they can be. (Edit) And thirdly, I already own as much as I want at the original price, to buy more of most of these I need them to be cheaper. (Or the rent to have increased!)
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Maestro
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Post by Maestro on Jul 20, 2016 9:49:21 GMT
To say property has fallen off a cliff is a bit of an overstatement, nobody knows for sure yet what will happen. It's not surprising that someone looking to make a quick exit will likely be happy to sell for around what they originally paid ignoring recent valuations. I agree with you on the diversity of locations offered, would like to see a few more properties from up North (Manchester, Liverpool, Leeds, York). Property (prices) doesn't fall off a cliff obviously, I was talking about property investments i.e. transactions. Price may or may not fall following a drop in transaction but far more likely to come down than go up but I agree no one know for sure what will happen. But lack of certainty or visibility on how post brexit UK looks like will certainly impact property transactions. next.ft.com/content/7d7cf3dc-ee75-3bc2-a869-dacb63c7cd7fLondon new house sales hit 3-year low : next.ft.com/content/8fbb240c-4dd1-11e6-8172-e39ecd3b86fc?tagToFollow=Q0ItWVRSRTU2Nw==-QXV0aG9ycw==
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hazellend
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Post by hazellend on Jul 20, 2016 17:25:31 GMT
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m203
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Post by m203 on Jul 31, 2016 8:49:20 GMT
So, according to latest newsletter property partner will go for higher yield. Anyone know what numbers this might mean?
I am currently I bit more invested in property moose, but would like to increase my share in property partner. But yield keeps drawing me to moose.
M203 from Sweden.
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beh
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Post by beh on Jul 31, 2016 10:02:06 GMT
Unless I'm missing something, not sure they've explicitly said they'll be going for higher yields?
Seems mostly reassurance rather than a clear investment strategy. I don't think this is bad, do they need a radically different strategy than before?
It's interesting to see clever nudges, "Most investors have chosen to hold", while pushing people towards discounts in the SM. I'd like to believe this is a platform populated by sensible people not prone to needless panic.
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j
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Post by j on Jul 31, 2016 17:30:27 GMT
So, according to latest newsletter property partner will go for higher yield. Anyone know what numbers this might mean? I am currently I bit more invested in property moose, but would like to increase my share in property partner. But yield keeps drawing me to moose. M203 from Sweden. Don't forget that what you see isn't always what you will get (this applies to all inc pp, pm, thc, etc). Some properties on pm have been struggling to achieve even half the original advertised yiled (in particular HMOs) so, bear that in mind wherever you decide to invest (not just pinpointing pm).
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bigfoot12
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Post by bigfoot12 on Jul 31, 2016 23:52:40 GMT
So, according to latest newsletter property partner will go for higher yield. Anyone know what numbers this might mean? 3.6% ?
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Post by scepticalinvestor on Jan 25, 2017 16:56:09 GMT
I've delved into what looked like (to me) unusually high yields for recent properties and it seems that PP have started using a standard 1.9% void assumption for recent listings compared to previous listings (from a year or more ago) where voids were assumed to be around 3, 4 and even in excess of 5%. That would mean the difference between a 5.01% yield and a sub 5% one.
Point in case -
The new Gainsborough (Lincs) block of flats has a void rate assumption of 1.9%, their old Gainsborough block of flats had a void rate assumption of 5.8%. The 1.9% is standard across all the most recent listings. Also, older listings always used to state that rental growth has been assumed to be 0%. However, this is missing from the more recent listings.
One thing I've liked about PP until now is that their dividend yield estimates have always been quite conservative, but I'm afraid it doesn't look like that policy has lasted very long.
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