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Post by stuartassetzcapital on Sept 28, 2018 17:22:07 GMT
Close, but not. Offsetting capital losses against P2P income is a standard feature of P2P now.
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nsilva
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Post by nsilva on Oct 3, 2018 21:59:22 GMT
How would you guys compare this type of product with something like the one offered by British Pearl, what would be the pros/cons of both?
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star dust
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Post by star dust on Oct 5, 2018 16:53:27 GMT
Latest email; now Assetz Exchange is raising £400k on SEEDRS. Apparently they have also been 'blown-away' by the client pre-registrations for the platform, but as they are still touting them I guess it hasn't reached 5000 yet.
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Post by stuartassetzcapital on Oct 5, 2018 17:19:08 GMT
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Mike
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Post by Mike on Oct 5, 2018 20:43:13 GMT
"At Assetz Exchange we trade in Lots. This is a fraction of an investment in a property."
"This is an investment in peer-to-peer loans and is not a direct property investment or a savings account."
But don't forget:
"One Lot is a share in a property investment"
I'm confused. Do investors own shares in the SPV which properly owns the property or not? The structure remains unclear to me, if there is any loan that has interest income that's a nonstarter for me. Who/what owns the property?
Avoiding taxable income or dividends in favour of a CGT-able return through loans to the investor-owned SPV would seem the obvious solution since it's often the last/hardest to make full use of. As well as being the lowest taxed if investors have no allowences left. . .
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zlb
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Post by zlb on Oct 5, 2018 22:57:43 GMT
"At Assetz Exchange we trade in Lots. This is a fraction of an investment in a property." "This is an investment in peer-to-peer loans and is not a direct property investment or a savings account." But don't forget: "One Lot is a share in a property investment" I'm confused. Do investors own shares in the SPV which properly owns the property or not? The structure remains unclear to me, if there is any loan that has interest income that's a nonstarter for me. Who/what owns the property? Avoiding taxable income or dividends in favour of a CGT-able return through loans to the investor-owned SPV would seem the obvious solution since it's often the last/hardest to make full use of. As well as being the lowest taxed if investors have no allowences left. . . I'd agree, hence asking tax type earlier on. I'd have thought more choice/chance of the equity spv/dividend model like PM is...would be a good thing? It makes me wonder whether there are faults with the PM PP model.
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ceejay
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Post by ceejay on Oct 5, 2018 23:09:46 GMT
My first concern when looking at an investment is the exit route - and I've avoided several otherwise popular P2P offerings because I don't like what I see.
With this one, I'm cautious. As I understand it, you buy a share of a property that's being let. There will normally be an exit date at which the property will be sold and you get your investment back, hopefully with a nice capital gain. BUT - if a majority of the owners decide by a vote that they want to carry on renting, there will be no sale. In which case your ONLY exit is by the aftermarket - if there is one at the time you want to exit. You may well have to offer a big discount to exit your position.
This is unlike most P2P loans where, even if the secondary market disappears for any reason, you have the fallback of waiting until a more-or-less definite end date to exit.
Unless I've missed something?
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Post by markaldrich on Oct 6, 2018 6:57:14 GMT
Same reason I steer clear of Landbay. The underlying mortgages are long term and without a secondary market you are stuck.
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macq
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Post by macq on Oct 6, 2018 7:12:30 GMT
Same reason I steer clear of Landbay. The underlying mortgages are long term and without a secondary market you are stuck. My wife is in Landbay and has sold within seconds before as there is a SM of sorts due to new money coming in being on the queue but your right that could dry up.But with PP or PM etc it all seems to be about votes or higher fee's then when compered to an IT/REIT but maybe this offering will be different but sort of looks the same to me.
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puddleduck
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Post by puddleduck on Oct 6, 2018 8:03:19 GMT
Same reason I steer clear of Landbay. The underlying mortgages are long term and without a secondary market you are stuck. I was able to sell out in literally seconds on Landbay recently to take advantage of the Assetz Capital 1% / 2% offer. I put it up for sale and it was practically instant - the money was in my bank account next day.
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Post by markaldrich on Oct 6, 2018 8:10:08 GMT
Yes it’s a very good liquid market. My challenger though is if there’s a panic and that dries up the underlying loans are so long I’ll be nearly dead before I see the cash!
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macq
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Post by macq on Oct 6, 2018 8:50:14 GMT
Yes it’s a very good liquid market. My challenger though is if there’s a panic and that dries up the underlying loans are so long I’ll be nearly dead before I see the cash! Fair point and the switch they did last year from 10 years to 25 years has not helped that feeling i guess.But as they only lend on buy to let i believe fixed for up to 5 years which then moves to 0.5% over tracker almost means the borrower almost has to vote what to do
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Post by stuartassetzcapital on Oct 6, 2018 8:51:28 GMT
Hi everyone. Different people have different aims. If someone would like to have a 5 year fixed exit timeframe regardless of aftermarket then they should invest into one of those properties on the platform. The hurdle on votes to change this will be very very high - likely 90%. Of course if that moment happens to be an economic meltdown then panic selling isn’t normally a good idea - so perhaps 90% vote to wait another 2 years say. Equally if people wanted 25 years of rental income from a prime housing site and went in on that basis it would take a very very high number of votes to change that and sell early. People should know what they are getting into and it is fair to make sure that is delivered in all normal market conditions.
I hope that helps.
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Post by stuartassetzcapital on Oct 6, 2018 8:57:43 GMT
Our model is initially a P2P loan model only - there is no other debt senior to that though so it’s first charge and 100% of costs. That higher risk level shows itself as exposure to both growth and losses though. If you don’t want that then go to Assetz Capital. We will release the tax position shortly but rents are income taxable yes but with no corp tax deducted first as with PP. If we adopted say the C2L model there would be corp tax deducted from rents and then cap gains tax on growth. We however have the ISA wrapper with no tax on either. Private investors who must have dividend income or capital gains are best elsewhere for now but watch this space.
I hope that helps.
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Post by markaldrich on Oct 6, 2018 9:01:04 GMT
Stuart when will it launch?
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