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Post by funtimedave on Nov 21, 2017 11:53:00 GMT
This will give away my complete lack of knowledge here but interested to learn.
I dipped my toe into this Platform and have now started to receive payments
Can someone explain in simple terms the difference / or what they represent for the following
1. Dividend payment
2. Immediate payment
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Post by sayyestocress on Nov 21, 2017 13:31:32 GMT
This will give away my complete lack of knowledge here but interested to learn. I dipped my toe into this Platform and have now started to receive payments Can someone explain in simple terms the difference / or what they represent for the following 1. Dividend payment 2. Immediate payment You get the 'immediate income' during the time between investing in the new listing and the completion of the purchase of the property. Once the purchase completes you will get the normal dividend. If the property you invested in has the guaranteed 5% return for two years you'll also see the 'enhanced dividend' which makes up the difference between the normal dividend and 5%. If you use auto-invest you'll also see 'interest cashback' which is the 5% they pay you on your un-invested auto-invest pot. HTH.
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littleoldlady
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Post by littleoldlady on Jan 28, 2018 22:59:32 GMT
I put in a small amount on auto-invest. It is spread fairly evenly over 5 loans, 3 of which are fully funded. There is no obvious "sell" button. Maybe the properties have not yet been purchased. Against each property is a number of "shares reserved". What is this?
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Post by sayyestocress on Jan 29, 2018 6:37:47 GMT
I put in a small amount on auto-invest. It is spread fairly evenly over 5 loans, 3 of which are fully funded. There is no obvious "sell" button. Maybe the properties have not yet been purchased. Against each property is a number of "shares reserved". What is this? Yes, you can't sell until the purchase has completed. You'll likely want to hold the shares for a while such that the dividends pay off the initial fee as you're unlikely to be able to sell at a premium unless the listing was overfunded or has a particularly high yield. Else you'll have made a loss. Note that these are not loans, you have bought equity;i.e. Shares in the spv that owns the property. The reserved shares are the shares you have paid for, and will be the owner of once pp have completed the purchase of the property.
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littleoldlady
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Post by littleoldlady on Jan 29, 2018 9:15:15 GMT
I put in a small amount on auto-invest. It is spread fairly evenly over 5 loans, 3 of which are fully funded. There is no obvious "sell" button. Maybe the properties have not yet been purchased. Against each property is a number of "shares reserved". What is this? Yes, you can't sell until the purchase has completed. You'll likely want to hold the shares for a while such that the dividends pay off the initial fee as you're unlikely to be able to sell at a premium unless the listing was overfunded or has a particularly high yield. Else you'll have made a loss. Note that these are not loans, you have bought equity;i.e. Shares in the spv that owns the property. The reserved shares are the shares you have paid for, and will be the owner of once pp have completed the purchase of the property. Thanks. Gradually finding my way round. Why are the share prices so low and such odd amounts? Are primary and secondary markets merged into one - I can only see one list of properties? What are the pros and cons of auto-invest? Do shares on the secondary market sell easily? Can they be offered at a discount? Due to my personal circumstances I do not want to be locked in for 5 years.
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SteveT
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Post by SteveT on Jan 29, 2018 9:23:52 GMT
Thanks. Gradually finding my way round. Why are the share prices so low and such odd amounts? Are primary and secondary markets merged into one - I can only see one list of properties? What are the pros and cons of auto-invest? Do shares on the secondary market sell easily? Can they be offered at a discount? Due to my personal circumstances I do not want to be locked in for 5 years. 1) PP tend to create 1 million shares in each SPV (see the Financials tab) so the share price = total acquisition costs divided by 1 million 2) Yes. Click on each property to see the current bids and offers (for completed properties) 3) Auto-invest avoids the need to keep logging in and bidding manually, and is given priority over manual bids when properties are oversubscribed (no scale-back). Also you earn a bit of interest on Auto-invest funds waiting investment. 4) Instantly, if you're happy to accept the best-available bid price. Otherwise, set your own offer price and wait / hope. Where there are multiple Bids and Offers at the same price, they're filled sequentially. 5) Yes
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Post by sayyestocress on Jan 29, 2018 9:34:05 GMT
Are primary and secondary markets merged into one - I can only see one list of properties? There is only one list (on the grid view) but you can tell the primary and secondary markets apart. The 'pre-order' (orange banner) and 'new listing' (blue banner) are the primary market. You aren't guaranteed to recieve what you order during the pre-order stage (scale back) unless your pre-order is through auto-invest. Though you will if it doesn't overfill during pre-order. IIRC the last pre-order that was over-filled was the first student housing listing in Exeter. If it didn't fill during pre-order then it goes to the new listing stage like the Northhampton and Redhill properties are at now. The 'funded - available for resale soon' (grey banner) are the properties that filled during preorder or new listing stages that are in limbo awaiting purchase by the SPV. All the other properties are the secondary market. on the data view the primary (new listings) and secondary (resale) markets are separate.
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littleoldlady
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Post by littleoldlady on Jan 29, 2018 10:23:42 GMT
Great guys I'm nearly there. One last question - I can't see any bids, only offers. Is this because there are none currently?
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SteveT
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Post by SteveT on Jan 29, 2018 10:56:41 GMT
Great guys I'm nearly there. One last question - I can't see any bids, only offers. Is this because there are none currently? Which property are you looking at? Try clicking "Wakefield, West Yorkshire, WF2" (aka. Heddle Rise), which is 7th on the Properties grid, and you'll see both on the little bar chart (Bids in green from 32p, Offers in blue from 34p)
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littleoldlady
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Post by littleoldlady on Jan 29, 2018 11:52:17 GMT
Great guys I'm nearly there. One last question - I can't see any bids, only offers. Is this because there are none currently? Which property are you looking at? Try clicking "Wakefield, West Yorkshire, WF2" (aka. Heddle Rise), which is 7th on the Properties grid, and you'll see both on the little bar chart (Bids in green from 32p, Offers in blue from 34p) Thanks again. There's a lot of data available on this platform!
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Post by longjohn on Jan 29, 2018 23:02:13 GMT
Which property are you looking at? Try clicking "Wakefield, West Yorkshire, WF2" (aka. Heddle Rise), which is 7th on the Properties grid, and you'll see both on the little bar chart (Bids in green from 32p, Offers in blue from 34p) Thanks again. There's a lot of data available on this platform! As well as an offer price of 34p a share you will also see the latest property valuation - currently 32.45p. So if you do buy you'll pay a 4.78% premium. Although PP have all their properties revalued every three months you can see the trading price of the shares is a bit out of kilter with the valuations. Take a look at the 8 flats in Greenford, PP values at 163.17p per share but you can buy at 129p. 20.94% discount on PP's valuation. Download the Data View spreadsheet from the bottom of the Properties-Data View page. It's the simplest way to look purely at the numbers. Their Blog is interesting and is also where you can download the full valuation history of each property. Look for the Open House and Revaluation posts. J
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littleoldlady
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Post by littleoldlady on Jan 30, 2018 10:04:19 GMT
Thanks longjohn . Actually that offer has put me off the site a bit. At my advanced age I cannot commit to investing for 5 years so liquidity in the SM is essential and if properties won't sell at 20% discount it is a worry unless there were special circumstances. I might open another account in my daughter's name though. One thing - why would anyone buy new offers when heavily discounted offers can be bought in the SM?
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SteveT
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Post by SteveT on Jan 30, 2018 10:27:53 GMT
Thanks longjohn . Actually that offer has put me off the site a bit. At my advanced age I cannot commit to investing for 5 years so liquidity in the SM is essential and if properties won't sell at 20% discount it is a worry unless there were special circumstances. I might open another account in my daughter's name though. One thing - why would anyone buy new offers when heavily discounted offers can be bought in the SM? Many of the older London properties yield only 2-3%, hence they need discounting to be attractive against the new 6% PBSA offerings, etc
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Post by sayyestocress on Jan 30, 2018 11:36:15 GMT
Thanks longjohn . Actually that offer has put me off the site a bit. At my advanced age I cannot commit to investing for 5 years so liquidity in the SM is essential and if properties won't sell at 20% discount it is a worry unless there were special circumstances. I might open another account in my daughter's name though. One thing - why would anyone buy new offers when heavily discounted offers can be bought in the SM? Many of the older London properties yield only 2-3%, hence they need discounting to be attractive against the new 6% PBSA offerings, etc Plus new residential property listings have had 5% dividend guaranteed for two years (since summer 2017). It's also worth noting that the more popular listings trade at a premium to their initial listing price and/or their current valuation. PP's valuations haven't been tested at exit yet so I pay more attention to the premium/discount to the new listing price. You'll see roughly half of the listings are at a premium to initial listing price which may put you off less?
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hazellend
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Post by hazellend on Jan 30, 2018 22:19:41 GMT
Thanks longjohn . Actually that offer has put me off the site a bit. At my advanced age I cannot commit to investing for 5 years so liquidity in the SM is essential and if properties won't sell at 20% discount it is a worry unless there were special circumstances. I might open another account in my daughter's name though. One thing - why would anyone buy new offers when heavily discounted offers can be bought in the SM? It is a bit confusing for newcomers, but some of the older properties share value is their market value (if sold individually), rather than the discounted investment value that property was bought for. i.e it is not a true discount. On more recent properties they have kept the share price at the investment value (with the discount) so the discounts are less. Hope that makes sense. I think they should re-rate the share valuations in the older properties to bring in line with the newer ones.
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