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Post by chris on Dec 21, 2015 8:49:47 GMT
I can second highlandtiger 's view. I personally prefer crowd2let, because they do some renovation, whereas property partner seem to mainly buy recently renovated/built properties. My global objection to all the crowd funded property sites is they structure the SPV's such that the investors get 80% of the capital gain and income, and the govt takes the rest in corporation tax. As such, returns need to be 25% higher than P2P lending in order to be competitive. If the investments were structured as loans to an SPV, instead of shares in an SPV, investors could have 100% of the returns. I've brought this up on here before, and with some of the platforms, but run into flannel and apathy. There seems to be a very obvious opportunity for Property Partner et al to tie up with the likes of AC ( chris ) to offer high-ticket 100% LTV loans in residential properties. The charge held over the property would mean investors were in effect equity investors, but there'd be no corporation tax. Perhaps IR would block such schemes. I'd imagine it could also come down to FCA permissions - for example we do not have permission to lend to consumers in relation to properties, it has to either be a business or for business purposes (e.g. releasing funds to fund a new business) rather than house purchase or development. We've even had to seek extensive advise to check the compliance of us taking first / second charge residential security against an otherwise business loan, making sure all our loan documents are fully compliant and in line with our permissions. Adding consumer mortgages to our permissions adds a whole heap of regulatory hurdles and authorised persons checks to an already complicated regulatory proposition so isn't something we're working toward. AC can lend to SPVs though as that's considered a business loan. So if there's a structure where that can be made to work, and there's adequate security, then that's something I'm sure the other directors would consider.
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Post by reeknralf on Dec 21, 2015 9:41:06 GMT
So if Property Partner were to bundle 1 (or 15) buy-to-let properties into an SPV, a lending platform could organise a loan to that SPV at 100% LTV?
Assuming the interest rate on the loan exceeded the combined rental and capital return from the property, the profit to investors would thus be 25% higher than the same investment as it is currently structured in Property Partner.
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hazellend
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Post by hazellend on Dec 21, 2015 22:00:02 GMT
Had a very quick look. Looks like at least 12.5% in fees apply. Will investigate further over next few days & see how it compares with pm/thc. Thanks for mentioning though highlandtiger The fees are the property management charges, which are in line with what an estate agent would charge. If you want to manage the property yourself you could cut this fee but probably create a lot of work and stress for yourself.
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ben
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Post by ben on Dec 21, 2015 22:26:52 GMT
have decided to have a little go at this and see how it goes
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ben
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Post by ben on Dec 21, 2015 23:09:16 GMT
the website looks pretty similar to PM so who copied who? I guess that PM did the copying as newer
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Post by highlandtiger on Dec 22, 2015 18:21:40 GMT
New property went live today. Slightly oversubscribed on the prefunding but everyone got about 96% of what they wanted. 10% was held back for those who wanted to buy without prefunding and that went very quickly. Another successful launch for PP I think.
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ben
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Post by ben on Dec 29, 2015 13:30:55 GMT
New property went live today. Slightly oversubscribed on the prefunding but everyone got about 96% of what they wanted. 10% was held back for those who wanted to buy without prefunding and that went very quickly. Another successful launch for PP I think. Another one went today I gave it a go got about 96% too so not to bad and the rest went pretty quick
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hazellend
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Post by hazellend on Dec 29, 2015 18:45:26 GMT
I am very happy with property partner. The yield is lower compared to PM and THC, I am getting net 3.3% across a 90k portfolio but they are investing in highly desirable properties and seem to get good discounts to market value. I have found the secondary market to be very liquid so far and sold an intitial 10k in the whitechapel property for 13k - 3,000 pounds net capital gain. They have had no voids as yet. I sold a BTL property a year and a half ago and have been drip feeding it into property crowdfunding. All the sites are good but property partner is the best.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Dec 29, 2015 20:27:18 GMT
I am very happy with property partner. The yield is lower compared to PM and THC, I am getting net 3.3% across a 90k portfolio but they are investing in highly desirable properties and seem to get good discounts to market value. I have found the secondary market to be very liquid so far and sold an intitial 10k in the whitechapel property for 13k - 3,000 pounds net capital gain. They have had no voids as yet. I sold a BTL property a year and a half ago and have been drip feeding it into property crowdfunding. All the sites are good but property partner is the best. Am I correct in understanding that PP do not chargw any sales fees (capitak gains is net subject to tax obviously)?
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hazellend
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Post by hazellend on Dec 29, 2015 20:51:49 GMT
Correct - the sale is paid net of capital gains tax. The buyer pays 2% to property partner and 0.5% tax.
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Post by highlandtiger on Dec 29, 2015 21:35:49 GMT
New property went live today. Slightly oversubscribed on the prefunding but everyone got about 96% of what they wanted. 10% was held back for those who wanted to buy without prefunding and that went very quickly. Another successful launch for PP I think. Another one went today I gave it a go got about 96% too so not to bad and the rest went pretty quick Being away at Xmas, meant I missed the chance of pre-funding this property, but I managed to get what I wanted when it went live this afternoon.
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ben
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Post by ben on Dec 29, 2015 21:41:27 GMT
i never even noticed it this afternoon what time did it go up at?
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Post by highlandtiger on Dec 29, 2015 22:02:25 GMT
i never even noticed it this afternoon what time did it go up at? 12:30, well 12:31 by my watch
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ben
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Post by ben on Dec 31, 2015 22:35:19 GMT
maybe as a fair few people seem to use property partner could we have a sub board for it?
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Post by highlandtiger on Jan 1, 2016 18:02:28 GMT
maybe as a fair few people seem to use property partner could we have a sub board for it? I second that..
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