hazellend
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Post by hazellend on Jul 26, 2016 20:05:53 GMT
They seem to be very proud of their new tennants in SPV 10 County Durham, mixed commercial unit and flat:
1) Commercial = 541 / month
2) Flat = 411/ month
3) Combined = 952 /month, 11424
Purchase cost = 186,000
Gross yield now a pathetic 6,14%
Projected net yield 8.14% at purchase.
Wish I had never come across this lot, and I have invested a lot with them now so it's too late for me until the properties are sold.
Really fed up and wish I had just stuck everything into property partner.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Jul 26, 2016 20:12:14 GMT
They seem to be very proud of their new tennants in SPV 10 County Durham, mixed commercial unit and flat: 1) Commercial = 541 / month 2) Flat = 411/ month 3) Combined = 952 /month, 11424 Purchase cost = 186,000 Gross yield now a pathetic 6,14% Projected net yield 8.14% at purchase. Wish I had never come across this lot, and I have invested a lot with them now so it's too late for me until the properties are sold. Really fed up and wish I had just stuck everything into property partner. Hopefully secondary market will not be too long.. :-)
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ben
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Post by ben on Jul 27, 2016 7:09:51 GMT
Maybe not as good as projected but you might have noticed that PP have also downgraded expected earnings, 6.14% for rental income is still not bad.
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pom
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Post by pom on Jul 27, 2016 8:07:06 GMT
They seem to be very proud of their new tennants in SPV 10 County Durham, mixed commercial unit and flat: 1) Commercial = 541 / month 2) Flat = 411/ month 3) Combined = 952 /month, 11424 Purchase cost = 186,000 Gross yield now a pathetic 6,14% Projected net yield 8.14% at purchase. Wish I had never come across this lot, and I have invested a lot with them now so it's too late for me until the properties are sold. Really fed up and wish I had just stuck everything into property partner. Clearly you're not in SPV 20 else you'd probably have a rather different view of underperforming. Unless there's tenants signed up for the full term (and even then there's probably still no guarantee they'll actually stay the full term) then there's always going to be voids somewhere, and it won't always be possible to get the desired rent - that's the risks of BTL however you do it. There will always be some poor properties (on any of the sites), but at least as it's shares you can diversify without needing an expensive portfolio of whole properties. Anyway SM is coming soon....I don't have any SPV10 as it was before I joined so depending on how the SM actually works and how much of that 6.14% you pass on maybe I'll buy some from you.
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Post by propertymoose on Jul 27, 2016 11:20:22 GMT
Hi Hazel
So sorry you're not happy with the performance. I just wanted to clarify the position on SPV 10.
The property is made up of 3x commercial units and 1x residential unit. The residential unit became empty and we completed a renovation to achieve a higher level of rent on the property and have now secured tenants.
The commercial units have always been tenanted. However, despite that, we actively sourced a new tenant in one of the units who was willing to pay more rent to maximise value for investors.
The current gross rent rack on the property is:
Commercial 1 = £200p.m
Commercial 2 = £650p.m
Commercial 3 = £541p.m
Residential = £411p.m
Total gross rent = £1,802 p.m
Gross Yield = 11.62%
Due to the increased rent, we anticipate that this will also increase the capital value of the property as commercial properties are valued on rent rack.
I hope that provides some clarity as to the numbers, as with all properties, there are risks of voids and this will cause fluctuations in returns over time.
As an investor in SPV 10, I am receiving a NET return of c.6.5% over the life-time of the investment which will now improve with the re-letting of the residential unit.
Hope that helps clarify the numbers on this investment and do let me know if you would like to discuss this or any of your other investments with us. We're always available to listen to ways we can improve.
Kind regards
Andrew
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hazellend
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Post by hazellend on Jul 27, 2016 13:36:15 GMT
Hi Andrew, thanks for the reply that is much better than I thought. I didn't realise there were 3 commercial units. I'm sure I couldn't see that information on the website but I'll take another look.
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