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Post by stuartassetzcapital on Jan 9, 2019 16:00:58 GMT
So what happens if the actual gains are 10% per annum? Assume it is donated to charity  Interested to know what regulation restricts capital gains to 5% per annum They have p2p permissions but not investment permissions so not sure how capital growth comes under those as normally youd only get interest. Its a weird structure.
However, given the current property market, 5%pa growth would be decent. More important, what happens if there is a decline in value, how does that work? Reading/watching to do later.
Capital growth will indeed be passed through.
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Post by stuartassetzcapital on Jan 9, 2019 16:04:33 GMT
They have p2p permissions but not investment permissions so not sure how capital growth comes under those as normally youd only get interest. Its a weird structure.
However, given the current property market, 5%pa growth would be decent. More important, what happens if there is a decline in value, how does that work? Reading/watching to do later.
I agree that 5% CG p/a would be good - but not if the real CG is more. And as you say I thought the structure meant that legally we are lending and earning income with any CG converted to income via a special dividend on sale (or similar). A fee of about 5% to AE at the start is a bit of a wind up so must be an error. It's 4.2% but only because of the large discount negotiated. otherwise its 3% with no VAT - either figure is a lot lower than some others in the market. The fees and all purchase costs and stamp duty are also pretty much covered in any case by that negotiated purchase price reduction.
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Post by stuartassetzcapital on Jan 9, 2019 16:05:24 GMT
I agree that 5% CG p/a would be good - but not if the real CG is more. And as you say I thought the structure meant that legally we are lending and earning income with any CG converted to income via a special dividend on sale (or similar). A fee of about 5% to AE at the start is a bit of a wind up so must be an error. Is the implication that due to AE buying wisely we are already sitting on a theoretical 8% capital gain? Presumably the 92p being the purchase price and the Lot value of 100p being the resale price. (Yes I know) Correct, you should change your name!
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Post by Proptechfish on Jan 9, 2019 16:16:20 GMT
It has launched. Annoyingly the pre-reg seems to have been pointless, go on the site you have to resign-up fill in details inc bank details, pass fraud checks (which took less than 5 seconds for me) an hey presto the 1st property is live. The site is in pre-soft launch ! It launches to pre-registered investors tomorrow and will go public a few days afterwards. The 1% promotion will be applied to all pre-regstered founder investors and will show on the dashboard shortly. Soft-launches are all the rage nowadays and we are working through the final list of web content updates but the core software itself is complete. Thanks stuartassetzcapital , as i suspected a few of us have been a little too eger in jumping the gun. I look forward to seeing the full rollout take shape and hope it lives up to AC's reputation in time.
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dApps
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Post by dApps on Jan 9, 2019 16:21:33 GMT
stuartasstzcapital, can you confirm whether the AML@etc email address is being monitored please.
I emailed yesterday afternoon as there is a note re: bank details on my account and haven't heard back (not even an automated response).
Thx.
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Post by Ace on Jan 9, 2019 16:48:05 GMT
Is the implication that due to AE buying wisely we are already sitting on a theoretical 8% capital gain? Presumably the 92p being the purchase price and the Lot value of 100p being the resale price. (Yes I know) Correct, you should change your name! Could someone please explain how the lot value is 100p, given that the RICS value is £110,000 and there are 115,000 lots?
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Post by Badly Drawn Stickman on Jan 9, 2019 17:32:28 GMT
Correct, you should change your name! Could someone please explain how the lot value is 100p, given that the RICS value is £110,000 and there are 115,000 lots? Looking at the figures, I would have to say no. On the plus side I am perfectly happy with my current name. Currently I am just seeing plenty of ways for AE to make money, a way for the management agent to make money and precious little in it for me. 2% fee for both parties in any secondary market deal seems outrageous in my books and would effectively kill any trade. The platform does seem to be constantly changing so maybe things will change.
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Post by stuartassetzcapital on Jan 9, 2019 17:52:37 GMT
stuartasstzcapital, can you confirm whether the AML@etc email address is being monitored please. I emailed yesterday afternoon as there is a note re: bank details on my account and haven't heard back (not even an automated response). Thx. Hi An Office 365 email migration was delayed a day or two and your email is no doubt in that aml@ inbox which is live in the morning for access again. Apologies for the delay.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Jan 9, 2019 18:09:29 GMT
96% implies a 96% LTV if it was a P2P loan? We all know where that has gone in the past. Thoughts?
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dApps
Posts: 91
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Post by dApps on Jan 9, 2019 18:31:59 GMT
stuartasstzcapital, can you confirm whether the AML@etc email address is being monitored please. I emailed yesterday afternoon as there is a note re: bank details on my account and haven't heard back (not even an automated response). Thx. Hi An Office 365 email migration was delayed a day or two and your email is no doubt in that aml@ inbox which is live in the morning for access again. Apologies for the delay. No problem. Appreciate the reply and the candidness is noteworthy. Also, just this minute, I have received an email to confirm the issue is in hand. Again, at 18:30, noteworthy.
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dApps
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Post by dApps on Jan 9, 2019 18:42:17 GMT
96% implies a 96% LTV if it was a P2P loan? We all know where that has gone in the past. Thoughts? Initial thought is that this is the finished article, with tenant in situ and revenues being generated. No PP to gain. No 'final lick of paint prior to finding tenants'. It's not only ready to go, it's up and running. This would be my first foray into 'being the landlord' territory, so the ability to get involved for a little as £15 (but realistically low hundreds) in a going venture appeals. Plus there's the potential for capital growth (even if capped at 5% and by no means a certainty in the current climate) which also appeals. All spoken as a naive noob, no doubt! (My current P2P experience is mostly around typical bridging loans such as offered by BridgeCrowd but this is obviously different.) Have you bad experiences with similar investment types on other platforms?
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Post by stuartassetzcapital on Jan 9, 2019 19:39:33 GMT
96% implies a 96% LTV if it was a P2P loan? We all know where that has gone in the past. Thoughts? Yes this is 100% funding of property investments and only if a discount is achieved is there any initial protection bar future potential price rises. It’s not the same as a 100% LTV loan to a trading business however as this has simpler rental income and is purposefully exposed to capital gains and losses as that is a proxy for traditional buy to let- so a healthy income that has good visibility and exposure to the property market values too - we would never recommend short-termism in property investment and many of our properties will have planned hold periods of a lot longer than 5 years for those who want to have long yerm income. Without 100% funding this would just be property loans with someone’s equity ahead of you and they get the capital gain/loss exposure and you may as well look at Assetz Capital for that. I hope this helps.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 10, 2019 14:40:02 GMT
Looks like a few more nibbles have been made (I assume people here know they can cancel if they are just doing it as a trial) 154 lots gone, hopefully to people who are aware that the loan conditions are incorrect.
On the subject of the management/monitoring fee - the actual management fee for P******* is 10%+VAT so the sum listed on the site is more correct than first thought, though the VAT seems to be missing. I wonder if AE have reduced their monitoring fee to 2.5% to keep the overall fee inline with the headline 12.5%, though again VAT seems to have been missed. Technically the loan agreement allows for 12.5% +VAT as a minimum so they could claim the whole 4.5%. Management fee includes insurance, hence no entry for that in the figures.
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Post by Badly Drawn Stickman on Jan 10, 2019 15:09:05 GMT
Looks like a few more nibbles have been made (I assume people here know they can cancel if they are just doing it as a trial) 154 lots gone, hopefully to people who are aware that the loan conditions are incorrect.
On the subject of the management/monitoring fee - the actual management fee for P******* is 10%+VAT so the sum listed on the site is more correct than first thought, though the VAT seems to be missing. I wonder if AE have reduced their monitoring fee to 2.5% to keep the overall fee inline with the headline 12.5%, though again VAT seems to have been missed. Technically the loan agreement allows for 12.5% +VAT as a minimum so they could claim the whole 4.5%. Management fee includes insurance, hence no entry for that in the figures.
I saw mention of a cooling off period, but lacked the time/interest to look at the details. I did do a trial deposit and was a little unimpressed with the timescale (That may improve, when/if the platform takes off). I suspect I will be testing the withdrawal next. Really not seeing anything very exciting going on, others seem to doing the same thing better at this time.
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Post by Proptechfish on Jan 10, 2019 18:43:26 GMT
My funds are in and assigned. Little over 24 hours not too shabby, lets see what happens.
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