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Post by george on Jun 2, 2016 19:15:24 GMT
Goodness, it's all change on PP tonight! Reading the latest blog at [1] it looks like they are using the opportunity of changes to the House Price Index to bring an end to monthly revaluations (temporarily, they say, but with no date for when they'll return, it sounds a bit like the "more statistics to become part of the platform soon" line). I guess recent web site changes have made those monthly revaluations rather less relevant anyway, given the increased focus on discount/premium to original purchase price rather than current valuation. Overall, it seems they are reorientating the platform quite aggressively to discourage exits before the 5 year term. Interesting times... will have to give some proper thought to my strategy as far as using PP goes. [1] resources.propertypartner.co/uk-house-price-index/ |
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hazellend
Member of DD Central
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Post by hazellend on Jun 3, 2016 14:26:22 GMT
Why would they want to discourage exits. Every time a secondary market sale occurs they get 2% commission. There is no exit before 5 years because you cAn only sell if there is a buyer so zero sum game
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ben
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Post by ben on Jun 3, 2016 14:41:46 GMT
Why would they want to discourage exits. Every time a secondary market sale occurs they get 2% commission. There is no exit before 5 years because you cAn only sell if there is a buyer so zero sum game Some people might just be buying on the secondary market and not investing in the new properties and the ones that sell are taking there money elsewhere. They get more money from buying new properties and the fees from that.
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Post by neuro on Jun 7, 2016 10:36:53 GMT
Why would they want to discourage exits. Every time a secondary market sale occurs they get 2% commission. There is no exit before 5 years because you cAn only sell if there is a buyer so zero sum game Some people might just be buying on the secondary market and not investing in the new properties and the ones that sell are taking there money elsewhere. They get more money from buying new properties and the fees from that. But perhaps they would get significantly more people investing on new listings if lenders felt assured that there was a liquid secondary market that facilitated a timely exit and at a decent price. Personally, I have been cautious to allocate any more towards PP since the recent changes given that I may not hold for 5 years until maturity.
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ben
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Post by ben on Jun 7, 2016 10:54:03 GMT
I still do not understand why anyone would buy on the secondary market. The cost of investing pretty much wipes out the first year rent you will get and most of the property growth has already been counted in when they redo the valuation. So all you are doing is increasing the risk for getting captial back at end as if there is a property crash you have more to lose.
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bigfoot12
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Post by bigfoot12 on Jun 7, 2016 14:16:32 GMT
Some people might just be buying on the secondary market and not investing in the new properties and the ones that sell are taking there money elsewhere. They get more money from buying new properties and the fees from that. But perhaps they would get significantly more people investing on new listings if lenders felt assured that there was a liquid secondary market that facilitated a timely exit and at a decent price. Personally, I have been cautious to allocate any more towards PP since the recent changes given that I may not hold for 5 years until maturity. With 2.5% in fees it is hard to imagine that the secondary market will ever be liquid like the those of AC or FC, of course it is way more liquid (and cheaper) than selling a BTL (which is what it is after all).
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Post by neuro on Jun 8, 2016 10:19:53 GMT
Fair points you both have...
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