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Post by rudry2677 on Jul 4, 2014 16:55:54 GMT
I am considering dipping my toe into The House Crowd but wondered how long it took, on average, for funds start earning interest taking into consideration
a) The time taken to fund the purchase.
b) The legal process to complete the purchase.
c) Any remedial work to ensure a safe and habitable residence
d) The delay in renting the property out.
Or is interest paid as soon as the property is purchased? If the interest is paid from the rent income, it appears that the rent payable is higher than the norm.
6% pa with a delay of say 12 weeks equates to less than 5% in the first year with no guarantee that a sale will generate a profit.
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mikeb
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Post by mikeb on Jul 4, 2014 17:08:33 GMT
It varies, depending on how quick the legals takes on the house purchase. Some time around HCP048 the timings were altered to reflect that fact that some projects were taking a little longer to progress, so the wait for interest was increased a little. Around 6 weeks from completion is the general figure, but the delay between depositing and completion is the variable bit.
These are my figures for the last three I invested in :-
HCP049: 24/02/14 deposited, completion 28/03/14, interest calculated from 09/05/14
HCP052: 19/03/14 deposited, completion 10/06/14, interest calculated from 22/07/14 <- that was a slow one though!
HCP053: 25/03/14 deposited, completion 30/04/14, interest calculated from 11/06/14
Yes there is a little dead time ... what can you do?
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jul 4, 2014 19:06:25 GMT
It varies, depending on how quick the legals takes on the house purchase. Some time around HCP048 the timings were altered to reflect that fact that some projects were taking a little longer to progress, so the wait for interest was increased a little. Around 6 weeks from completion is the general figure, but the delay between depositing and completion is the variable bit. These are my figures for the last three I invested in :- HCP049: 24/02/14 deposited, completion 28/03/14, interest calculated from 09/05/14 HCP052: 19/03/14 deposited, completion 10/06/14, interest calculated from 22/07/14 <- that was a slow one though! HCP053: 25/03/14 deposited, completion 30/04/14, interest calculated from 11/06/14 Yes there is a little dead time ... what can you do? The ones I have are after 53 & haven't started paying yet so cannot comment. The bigger picture is about making money from the eventual sales, provided house market remains stable, which is a balanced risk you have to take according to your personal risk profile in investment.
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shimself
Member of DD Central
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Post by shimself on Jul 4, 2014 20:59:38 GMT
Recently they've had the purchase lined up so that would knock a few weeks off the delay
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Post by rudry2677 on Jul 5, 2014 6:53:11 GMT
Thank you for your replies. Very much appreciated.
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mikeb
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Post by mikeb on Jul 5, 2014 18:49:25 GMT
Recently they've had the purchase lined up so that would knock a few weeks off the delay You're absolutely right, the tone of the investment emails has definitely shifted to "We have put an offer on a house, have you got some money then?"  Clearly an improvement in the pipelining of the offers!
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