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Post by c0nfuzed on Jul 1, 2021 11:10:53 GMT
There are no new properties coming online.
I have some properties that aren't going to hit their 5 year anniversary until 2024 - what will Property Partner actually be by then?
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SteveT
Member of DD Central
Posts: 6,873 
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Post by SteveT on Jul 1, 2021 11:31:28 GMT
Sure, their business model is now very simple. They cover all their property management costs by taking a big enough % cut of all rents. They cover all of their salary / overhead / bonus costs by charging us 1.2%pa of our capital (plus an extra £1pm to add insult to injury).
And, should the current AUM fee prove insufficient for their greed, they can simply tell us they've decided to charge us more and that there's nothing we can do about it (which the Financial Ombudsman is happy to accept, by the way).
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Post by scepticalinvestor on Jul 1, 2021 12:56:30 GMT
It's a great business model, at least for the next 3-4 years. Zero risk to the owners+executives of PP and full control over the rewards. Worst case scenario for them is that they will need to wait till a property is sold to extract their pound of AUM flesh. It will interesting to see if they ever dip their toes in the market again as a buyer.
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Post by c0nfuzed on Jul 1, 2021 16:31:53 GMT
I guess my point was, most holdings seem to get sold at the end of their 5 year period, so what are PP going to do when they've only got a handful of properties left and, presumably, very little AUM coming in?
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Post by greatboo on Jul 2, 2021 12:21:29 GMT
I contacted PP by email a couple of weeks ago, making this point, and asking about their future plans.
Their reply said that they are planning to launch new investments later in the year and resume growth of the platform, but that any specific announcements would (quite correctly) be made to all clients simultaneously.
I received a couple of notifications of 5 year anniversary votes the other day:
One spelled out the merits of retaining the property for now, including a second chance to sell in a year's time. The other pointed out that selling the property one unit at a time could take 18-24 months, during which time dividends would be suspended.
So they're (understandably) keen to make the case for keeping some of the current assets under management after the 5 year mark, rather than selling them.
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Post by c0nfuzed on Jul 2, 2021 14:16:17 GMT
That's interesting! Thanks for the update greatboo.
Although i think i've just about had enough and will be exiting as my 5-year anniversaries come up.
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Post by overthehill on Jul 2, 2021 16:22:22 GMT
I'm still waiting for my 'unrealised gains' to start moving in the positive direction not negative.
Two properties each sold a single unit and my portfolio value drops another £170. Even with all that data provided I can't make any sense of it, I'm past caring. Thats a minimum 8.5% drop in value for around £2000 of property and that was with supposedly good offers.
Still waiting on my first returned cash from exits. I knew there would be another snag, the company has to be closed by an accountant before cash can be distributed of course.
Just as well house prices have boomed since the start of the pandemic, no correlation in my portfolio.
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Post by longjohn on Aug 1, 2022 16:56:14 GMT
I contacted PP by email a couple of weeks ago, making this point, and asking about their future plans. Their reply said that they are planning to launch new investments later in the year and resume growth of the platform, but that any specific announcements would (quite correctly) be made to all clients simultaneously. I received a couple of notifications of 5 year anniversary votes the other day: One spelled out the merits of retaining the property for now, including a second chance to sell in a year's time. The other pointed out that selling the property one unit at a time could take 18-24 months, during which time dividends would be suspended. So they're (understandably) keen to make the case for keeping some of the current assets under management after the 5 year mark, rather than selling them.
A year on from this post and there are no new investments and no growth in the platform.
In October 2020 we has 108 properties with 1059 bedrooms and as of today we have 60 properties with 861 bedrooms.
Today I received yet another 'We've had an offer on a property' email.
Would I be right in thinking PP are sending out fliers to all properties (other than student flats) with the screaming headline - "You can buy the property cheap! Make us an offer! Nothing refused!".
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Post by scepticalinvestor on Aug 1, 2022 18:56:44 GMT
I contacted PP by email a couple of weeks ago, making this point, and asking about their future plans. Their reply said that they are planning to launch new investments later in the year and resume growth of the platform, but that any specific announcements would (quite correctly) be made to all clients simultaneously. I received a couple of notifications of 5 year anniversary votes the other day: One spelled out the merits of retaining the property for now, including a second chance to sell in a year's time. The other pointed out that selling the property one unit at a time could take 18-24 months, during which time dividends would be suspended. So they're (understandably) keen to make the case for keeping some of the current assets under management after the 5 year mark, rather than selling them.
A year on from this post and there are no new investments and no growth in the platform.
In October 2020 we has 108 properties with 1059 bedrooms and as of today we have 60 properties with 861 bedrooms.
Today I received yet another 'We've had an offer on a property' email.
Would I be right in thinking PP are sending out fliers to all properties (other than student flats) with the screaming headline - "You can buy the property cheap! Make us an offer! Nothing refused!".
I doubt they're seriously thinking of continuing this model as is. There simply isn't enough surplus-income from the way they're doing it to satisfy even the most undemanding investors. With their Trustpilot rating pretty much shot, they're going to struggle to attract new retail investors to the brand. On top of all this, the FCA is introducing a lot of new red-tape (including banning referral and joining bonuses) to what they consider high-risk non-advised investments (not sure if PP falls in that bucket) so it's not going to get any easier to grow the investor base. I suspect they will drag out the current portfolio for as long as possible and extract their pound of flesh one way or the other. Perhaps in that time they will think of a viable end game. For me, the only positive is that the underlying asset being properties, there's no risk of a huge % loss.
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Post by overthehill on Jan 13, 2023 9:58:48 GMT
ROFL. Unselfish.
New PPX All-Share Investment Plan is open for investment
As announced on 15 December, Better is undertaking a programme of significant direct investment in the Resale Market to increase liquidity, thereby encouraging more efficient pricing and asset valuation across the portfolio.
The PPX All-Share enables clients to invest directly alongside Better.
PPX All-Share benefits:
Maximum diversification, targeting all trading properties (over 40 in February)
Bidding strategy ensures best execution at the best available price
All Share Index is currently (12 January 2023) trading at a 25% discount to independent surveyors' valuation
Identical portfolio to Better (same properties, same proportions, same price per share)
Investment from £1,000
Customer funds are deployed in the plan on a monthly basis with 11.59pm 31 January the cut-off for investment in the February deployment.
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