jester
Member of DD Central
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Post by jester on Mar 12, 2021 19:38:57 GMT
At the outset I was sold on the idea of these platforms as an alternative to personal BTL but it's turned into a bleak picture.
Property Partner - Introduction of flat fees which punish smaller investors and disappointing performance
British Pearl - Never got off the ground and now selling the portfolio at a loss to one of their own shareholders
The House Crowd - Gone into adminstration
So my question is, has the whole concept failed or are there still viable options?
I'm close to walking away but at the same time I'm looking into Assetz Exchange (previously opted against due to tax implications but now offering IFISA) and OnStep an interesting proposition from Unbolted.
What's your take on these platform options and the wider Equity Crowdfunding space?
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Post by Ace on Mar 12, 2021 21:28:25 GMT
You missed out Uown, they're also stopping equity investments.
I'm in AE and OS. AE is working out OK so far, but we won't know how things will finally turn out until many of the properties get sold. The renting seems to be going OK, I'm currently achieving an XIRR of 8.66% (4.83 excluding a generous cashback).
OS is doing exactly what it says on the can. The only property on there is returning 3% rent, with all payments on time so far. Again, the crunch will come at the end of 7 years when the property is sold. I like the fact that the tenants have skin in the game and have a program of works to complete, so will hopefully put maximum effort into achieving the best price.
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Post by wiseclerk on Mar 13, 2021 9:35:17 GMT
I liked the concept too, but it has not fulfilled it's promises. You can add Housers and possibly 1-2 other European platforms to your list. Maybe the additional process steps required in manageing the property increase the overhead too much and make the model too expenisve to be sustainable.
So far I fared much better with loan based property investments (mainly Estateguru and Saving Stream (out before collaps), but also AC, lost a few quid on MT) than the very small amount I had in property equity (mainly Housers).
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elliotn
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Post by elliotn on Mar 15, 2021 3:20:34 GMT
& Property Moose, who rolled the properties into a listed investment.
In addition I’m also in Yielders (ESG/Islamic tilt but same product) & Brickowner might still be going.
I made this my largest asset class despite the more modest income in the belief that as the owners we couldn’t be diddled by dodgy borrowers/platforms or short term refi problems.
However, I managed to invest just before PP fee hike, BP are acquiring our properties under a thesis that was wrong and uown are selling based on regulatory problems (that have not affected other platforms).
I may invest modest amounts in AE/Yielders on attractiveness properties otherwise will move out BP/uo & sell PP anniversaries.
Still a meaningful % of my portfolio but it has not met expectations of ownership, possibly because platforms miscalculated cost structures (PM,PP,BP?), will be interesting to see how AE progress assuming PP will be more aum fund with some developments.
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