mjc
Member of DD Central
Posts: 342
Likes: 425
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Post by mjc on Oct 6, 2018 21:31:49 GMT
I am dubious of the benefit of 5 - 6% with doubts on the liquidity, especially if there was a downturn in the market, when I can get 5.1%, with a PF, in the 30day account. Am I missing the point? (I am exposed to the residential and commercial property market directly already, hence my caution). Or is it the hope of a Capital Gain? 5-6% percent as a BTL landlord myself with several properties in my portfolio seems very low to me. For properties I do not manage myself, the agent takes 15%, this still leaves double digit yields. I'm aware there are certain parts of the country, where around 6.5% is considered 'good' but the smart BTL money isn't going into those places. As a counter point to that however, in my experience the double digit yield areas generally do not see a much house price inflation - actually the lower prices are the reason for the higher yields. I've registered to take a look as I like Assetz but like you, 5-6% doesn't really grab me, as it seems unambitious, although again as a counterpoint, assuming few voids, easily do-able. Agent gets 15%? Is that +vat? Hope they are doing lots for that! But buying further afield you need a good agent. The market and tax regime for BTL is dire. The AC ethics of buying existing let or new builds is a welcome change, rather than competing with 1st time buyers. One big drawback for me has been managing, illiquidity, and mainly that it can’t be held in an ISA, including any CGT liability. I get 5-10%(HMO) and 7-12% commercial, (none BTL) but after tax, maintenance and compliance, I’d rather have 5 or 6% tax free. However I still think 5.1% within an ISA, with 30d access, is still more attractive for an easy life. Stuart, roll on them extra goodies. (I have registered.)
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Post by vaelin on Oct 8, 2018 15:01:40 GMT
stuartassetzcapital I noticed this in your 'Principles' section: Looks like you edited a sentence incorrectly. Might want to change that. Whilst I am on the subject of principles, I appreciate that AE is trying to take an ethical approach to the market. Something I would have liked to see in your Principles section is a statement on how AE will approach the management of properties. The quality of the landlord can have a significant impact on the living conditions tenants find themselves in - too many people live in mouldy or otherwise unfit accommodation, and they often find it difficult to get redress from their landlords even when the law is in their favour. I would only really be interested in investing with AE if I knew that tenants were living in quality accommodation. I would not want to take money from people if they are living in a modern UK slum.
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Post by stuartassetzcapital on Oct 8, 2018 15:05:35 GMT
Thanks for that spot - I think the web editing had a glitch !
Absolutely yes, we will most certainly be maintaining properties well and delivering quality - not investing in bottom end property with bottom end maintenance - it’s another direction of travel in the industry that we want to be ahead of - not being pulled unwillingly along.
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jlend
Member of DD Central
Posts: 1,840
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Post by jlend on Oct 8, 2018 16:48:46 GMT
Looks interesting. Will take a longer look.
I am always wary about past performance stats, even with the disclaimers on the website.
E.g. the nationwide house index for the year september 2016 to 2017 is 2.58% and 2017 to 2018 is 2.09%. So a lot less than the 11.7 average for the earlier period quoted on the AC website.
I just hope people are aware of the volatility.
Property prices are dropping in some parts of the country.
Looking at the figures over 3 and 5 years
3 year
Nationwide house price index up 10.41%
FTSE All Share up 27.72%
5 year
Nationwide house price index up 26.44%
FTSE All Share up 40.55%
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Post by stuartassetzcapital on Oct 9, 2018 18:58:30 GMT
Yes just in a few recent years the low Exchange rate has boosted the stock market - in my view this is artificially supporting share prices - if Brexit is bad then the pound may fall further and maybe slightly support shares versus the other challenges the market will face - but if Brexit goes well the pound may soar and the stock market finally start its overdue journey down.
To answer the other questions, yes housing has risen so much that £15k in 1997 is now c £50k a year or so ago.
AE isn’t about hope that prices go up though - that’s an anathema to me and always has been - you can’t retire on hope but you can on income - we will buy well to lock in good yields but also build profits too. Background price growth is a final potential boost.
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bg
Member of DD Central
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Post by bg on Oct 9, 2018 22:07:49 GMT
Yes just in a few recent years the low Exchange rate has boosted the stock market - in my view this is artificially supporting share prices - if Brexit is bad then the pound may fall further and maybe slightly support shares versus the other challenges the market will face - but if Brexit goes well the pound may soar and the stock market finally start its overdue journey down. I don't think it's as simplistic as that. Yes the falling exchange rate has supported the UK stock market (FTSE100 in particular) but Brexit/political factors have weighed much more heavily in my view. The UK has underperformed other major indicies significantly over the last couple of years. For me a lot of bad news is baked into that particular cake which is why I am overweight the FTSE250. I think if Brexit pans out OK the yes the £ will rally but there's no way I can see the FTSE250 falling.....it will rally for sure (but not as strongly as it would if the £ wasn't surging). All that said, I don't think the market is overly worried about Brexit anymore - and I'm certainly not (and I'm a staunch remainer), there's just a much bigger risk. The biggest risk to markets, property prices and asset prices in general (not to mention the economy, jobs and general standards of living) is the prospect of a Marxist government in the UK who are staunchly anti capitalism, wealth and wealth generation. They have already announced plans to give away 10% of equity in UK companies to 'the workers', they have also announced punitive council tax rates for second home owners. They will look to absolutely hammer BTL/landlords, that is for sure, whatever guise it is under....they fundamentally do not believe in it. That is the real big risk investors (in any UK asset) are facing right now. Forget Brexit.
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dandy
Posts: 427
Likes: 341
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Post by dandy on Oct 10, 2018 9:58:40 GMT
I don't think it's as simplistic as that. Yes the falling exchange rate has supported the UK stock market (FTSE100 in particular) but Brexit/political factors have weighed much more heavily in my view. The UK has underperformed other major indicies significantly over the last couple of years. For me a lot of bad news is baked into that particular cake which is why I am overweight the FTSE250. I think if Brexit pans out OK the yes the £ will rally but there's no way I can see the FTSE250 falling.....it will rally for sure (but not as strongly as it would if the £ wasn't surging). All that said, I don't think the market is overly worried about Brexit anymore - and I'm certainly not (and I'm a staunch remainer), there's just a much bigger risk. The biggest risk to markets, property prices and asset prices in general (not to mention the economy, jobs and general standards of living) is the prospect of a Marxist government in the UK who are staunchly anti capitalism, wealth and wealth generation. They have already announced plans to give away 10% of equity in UK companies to 'the workers', they have also announced punitive council tax rates for second home owners. They will look to absolutely hammer BTL/landlords, that is for sure, whatever guise it is under....they fundamentally do not believe in it. That is the real big risk investors (in any UK asset) are facing right now. Forget Brexit. Totally agree. The biggest danger to UK and its economy is Labour/JC. JC in power is a UK meltdown in the making
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zlb
Member of DD Central
Posts: 1,422
Likes: 333
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Post by zlb on Oct 10, 2018 15:56:50 GMT
Yes just in a few recent years the low Exchange rate has boosted the stock market - in my view this is artificially supporting share prices - if Brexit is bad then the pound may fall further and maybe slightly support shares versus the other challenges the market will face - but if Brexit goes well the pound may soar and the stock market finally start its overdue journey down. To answer the other questions, yes housing has risen so much that £15k in 1997 is now c £50k a year or so ago. AE isn’t about hope that prices go up though - that’s an anathema to me and always has been - you can’t retire on hope but you can on income - we will buy well to lock in good yields but also build profits too. Background price growth is a final potential boost. hi Stuart, buying "well" is a point of interest obviously. Can you describe what that might mean? Eg properties which although they might dip in value, will continue to have stable yield, and therefore more liquid if I wanted to sell out? ... Also you seem to imply elsewhere that it may be that the yield could be higher than the 5-6%, have I misunderstood? Thanks.
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Post by stuartassetzcapital on Oct 10, 2018 18:54:23 GMT
Hi. Buying well means negotiating prices lower than valuation, perhaps by being a bulk purchase, a quick sale requirement from a vendor, pure negotiation skill, the certainty of us being a cash buyer and so on. The net yield range of 5-6% is an example and ignores property value capital losses/ gains adjustments to this and yes some could well be higher and some could be lower if investors wished to fund affordable rents on some properties.
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jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
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Post by jlend on Oct 15, 2018 15:39:38 GMT
Yes just in a few recent years the low Exchange rate has boosted the stock market - in my view this is artificially supporting share prices - if Brexit is bad then the pound may fall further and maybe slightly support shares versus the other challenges the market will face - but if Brexit goes well the pound may soar and the stock market finally start its overdue journey down. To answer the other questions, yes housing has risen so much that £15k in 1997 is now c £50k a year or so ago. AE isn’t about hope that prices go up though - that’s an anathema to me and always has been - you can’t retire on hope but you can on income - we will buy well to lock in good yields but also build profits too. Background price growth is a final potential boost. Perhaps as a suggestion stuartassetzcapital the website could display the 1 year, 3 year, 5 year, 10 year figures for the indices I think something like this is typical with funds. It just might give a balanced view over the short, medium and long term past performance.
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Post by stuartassetzcapital on Oct 17, 2018 17:46:45 GMT
Yes point taken and will be followed through shortly - it’s difficult comparing property to some other asset classes as stock market returns including dividends reinvested is readily available but property with rental income (never mind mortgage gearing effect) isn’t.
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Post by markaldrich on Oct 24, 2018 8:13:11 GMT
Any news on when this will go live? Thanks
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surby
Minor shareholder in Assetz Capital
Posts: 32
Likes: 18
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Post by surby on Oct 25, 2018 16:49:16 GMT
The campaign now seems to be live for those who pre-registered with seedrs.
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Post by Ace on Oct 25, 2018 21:26:33 GMT
I pre-registered, but I can't find this on seedrs. How did you get notified?
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Post by markaldrich on Nov 24, 2018 11:00:22 GMT
Any update on launch date please?
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