IFISAcava
Member of DD Central
Posts: 3,661
Likes: 2,984
|
Post by IFISAcava on Aug 5, 2019 14:19:03 GMT
The Bricklane offering within an ISA (or indeed any REIT or combinations of REITs) now looks a much better prospect than Property Partner long term for higher rate tax payers.
|
|
travolta
Member of DD Central
Posts: 1,454
Likes: 1,166
|
Post by travolta on Aug 5, 2019 16:55:05 GMT
It was nice while it lasted, but time to go for me (at a loss dammit)
|
|
beh
Member of DD Central
Posts: 174
Likes: 76
|
Post by beh on Aug 5, 2019 20:34:12 GMT
Looking at the actual dividends received this month and it's pretty much halved after the aum fee and dividend adjustments. For anyone that hadn't done some rough sums previously the impact is now clear. For a small investor you might as well stick it in a 1yr savings account.
At lowestSharePrice and highestCurrentBid I'm either barely breaking even or at a ~3.2% loss to sell now. Whereas from their latest valuation price apparently I'm nearly 9% up.
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Aug 6, 2019 9:36:59 GMT
With one thing or another I've not really had much chance to put much thought into this since the announcement, other than sending in a quick email complaint (which was finally responded to late last week...with an offer of a call this week, which frankly I think would be pretty pointless). And now that I have finally got time to think about it, frankly I'm pretty mad.
I get that they may have found their model isn't as sustainable as they originally hoped, perhaps they're actually haemorrhaging money, that they need to introduce such a huge sweeping change so quickly. I'm sure they think 1 month notice with a 6 month grace period is completely reasonable...but these were 5 year investment! Certainly not something I expected to have to be worrying about THIS summer. Overall the message I'm getting is this is mostly either due to arrogance and greed.....or incompetence if they genuinely need to make such a huge change so quickly. (I can't be bothered to try and work out the total value of property they have under management at the moment, but am quite sure this must be a pretty huge new income stream for them)
I can see why they decided on AUMs, after all "proper" companies managing investments in stocks and shares have them. And I bet they copied their rates too given apart from the discount threshold they seem to be extremely similar to what I'm paying my S&S guys (I think anyway, I don't check it all that closely). But the reality is nothing like.
My S&S portfolio: AUM fees probably actually eat up 60-70% of my dividends, because my portfolio is being run for growth rather than income at the moment. However in return, they fully manage my investments including using up my CGT allowances, and compared to that growth and current general volatility the fees are basically noise.
PP: AUM fees will eat up a lot of my dividends (honestly I can't actually be bothered to calculate it because my whole holding is deliberately too small to really need to worry about, so will take others words that its up to 50%) And in return....I have to do everything (my original strategy was to buy & hold but unfortunately for me I needed to start selling some just before this was announced) and even if I didn't now sell out completely I'll be lucky if there's any growth at all to compensate. Which isn't necessarily the end of the world as I have so many capital gains that losses are always "useful"....but when it'll be tiny amounts here and there, it's just more calculation work for little real tax gain.
If they had introduced it for new investments only I might have had a bit more faith in the state of their business and future trustworthiness. But as it is, particularly after their crowing about record SM sales I certainly woudn't trust them not to do something similar in future. So I just need to decide how quickly I can be bothered to exit
|
|
carolus
Member of DD Central
Posts: 204
Likes: 191
|
Post by carolus on Aug 6, 2019 9:52:20 GMT
If they had introduced it for new investments only I might have had a bit more faith in the state of their business and future trustworthiness. But as it is, particularly after their crowing about record SM sales I certainly woudn't trust them not to do something similar in future. So I just need to decide how quickly I can be bothered to exit This is key for me. They've just destroyed any trust I have in their process or their willingness to treat investors fairly. AUM for new investments would have been disappointing but understandable. But retroactively changing the terms of the investments then bragging about what good deals are available is just not right.
If I were suspicious I'd say that they have some "friends" investing on favourable terms, just ready to snap up bargains. I don't think I really believe this, but the fact that I can't convince myself to dismiss out of hand the idea that the platform may be deliberately acting against Lenders' interests is pretty damning.
|
|
|
Post by shootingstar on Aug 6, 2019 13:56:35 GMT
has anyone taken their case to the financial ombudsman service as yet? and if so, what is the process and they key points around your complaint
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,787
Likes: 11,004
|
Post by ilmoro on Aug 6, 2019 16:14:53 GMT
has anyone taken their case to the financial ombudsman service as yet? and if so, what is the process and they key points around your complaint Too early. Complaint has to be made to PP first, then they have 8 weeks to respond, then it goes to FOS.
|
|
jester
Member of DD Central
Posts: 161
Likes: 203
|
Post by jester on Aug 6, 2019 18:14:13 GMT
Much like others, my returns have taken a circa 60% hit. Not so much a haircut as a military buzz cut!
As retrospective fees go, this is the worst I've experienced. They're original business plan must have been a shocker to need such as extensive overhaul to existing customer terms.
Like others I'd love to up sticks and leave but my properties have devalued substantially on average since purchased, I'd need to reduce further to attract buyers and I feel I'd be cutting off my nose to spite my face.
So for me it's further investment cancelled, wait it out and hope for some capital gains. As things stand they're dead to me beyond that .....
.....even if they have a buoyant secondary market they seem so proud off ðŸ˜
|
|
|
Post by Ace on Aug 6, 2019 21:18:02 GMT
I had some ISA cash on the platform waiting for an ISA eligible project. Now they've upped the fees I'm going to transfer it elsewhere, but it's going to cost me £35 for the privilege. Has anyone succeeded in getting them to drop this charge, given that they substantially changed the terms (upped the fees) after the cash was deposited?
If not, I can't decide whether I can be bothered to go through the official complaint followed by FOS procedure. If I do, I'm not sure whether it would hold up a transfer, which could easily more than eat up the £35 through loss of interest.
|
|
benaj
Member of DD Central
Posts: 4,828
Likes: 1,586
|
Post by benaj on Aug 6, 2019 21:31:30 GMT
has anyone taken their case to the financial ombudsman service as yet? and if so, what is the process and they key points around your complaint Too early. Complaint has to be made to PP first, then they have 8 weeks to respond, then it goes to FOS. Not trying to discourage anyone to follow the FOS route. FOS is probably busy and taking priority over complaints as PPI deadline is approaching.
|
|
mrk
Posts: 807
Likes: 753
|
Post by mrk on Aug 7, 2019 10:59:03 GMT
I get that they may have found their model isn't as sustainable as they originally hoped, perhaps they're actually haemorrhaging money, that they need to introduce such a huge sweeping change so quickly. [...] Overall the message I'm getting is this is mostly either due to arrogance and greed.....or incompetence if they genuinely need to make such a huge change so quickly. I guess that's part of the risk with any startup. They operate at a loss for the first few years in order to fuel "growth". They raise more funding rounds from venture capitalists as long as they can demonstrate enough growth. If they're not growing enough venture capitalists are not willing to put in any more money and the business needs to figure out a quicker way to get profitable.
|
|
benaj
Member of DD Central
Posts: 4,828
Likes: 1,586
|
Post by benaj on Aug 8, 2019 19:46:54 GMT
I get that they may have found their model isn't as sustainable as they originally hoped, perhaps they're actually haemorrhaging money, that they need to introduce such a huge sweeping change so quickly. [...] Overall the message I'm getting is this is mostly either due to arrogance and greed.....or incompetence if they genuinely need to make such a huge change so quickly. I guess that's part of the risk with any startup. They operate at a loss for the first few years in order to fuel "growth". They raise more funding rounds from venture capitalists as long as they can demonstrate enough growth. If they're not growing enough venture capitalists are not willing to put in any more money and the business needs to figure out a quicker way to get profitable. or ask woodford before too late.
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Aug 8, 2019 20:40:17 GMT
Their trustpilot rating has now dropped to poor. If you haven’t yet left your 1 star review please do so. The fact that PP don’t seem to care suggests to me they are just trying to milk their customers before their ultimate demise. Maybe some naive investors will get lured in but surely any investor with significant money will run a mile now.
Wouldn’t surprise me if they do a moose and force everybody into a REIT or accept discount to get out.
|
|
travolta
Member of DD Central
Posts: 1,454
Likes: 1,166
|
Post by travolta on Aug 9, 2019 15:16:30 GMT
PP appear to be paying small withdrawal amounts on sales but, in my case, dragging their feet in payment of amounts over 1K . Anyone else experiencing this? They also seem to have hidden their help/chat facility.
|
|
p2ploser
Member of DD Central
Posts: 163
Likes: 221
|
Post by p2ploser on Aug 9, 2019 17:29:05 GMT
I was looking forward to my weekly email on how great things were going. I noted that week 1 after the new fees they told us how little sm values had dropped (6%) and how, although there were a lot of withdrawals from the platform, they took a lot of money in. Week 2 they didn’t mention withdrawals or new cash and only mentioned a small improvement in the decrease in sm values. Today, nothing. I’m sure it all going really well. Mr Warren bath has started with a bang......turned a decent platform into a pile of ****.
|
|