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Post by c0nfuzed on Nov 1, 2021 15:58:22 GMT
It's only two months until the 5 year anniversary and this is one of my very few properties that is in the green.
Why sell a single unit now? Surely it's better (and cheaper) to market the whole thing in one go as was the original intention?
Trying to sell 10 flats separately is going to take forever.
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Post by overthehill on Nov 1, 2021 16:20:29 GMT
It's only two months until the 5 year anniversary and this is one of my very few properties that is in the green. Why sell a single unit now? Surely it's better (and cheaper) to market the whole thing in one go as was the original intention? Trying to sell 10 flats separately is going to take forever.
That's it Lewis , you've done it again said Inspector Morse. It will take forever. Fees?
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Post by drg on Nov 3, 2021 10:47:53 GMT
At the risk of sounding cynical, if they sell a unit now, the block will be broken when the 5-year anniversary comes round. This means that there will be a bigger gap between the investment value of the remaining block and the vacant possession value of all the units. This means that they can say that a "compelling reason to hold" is that if you sell in the block listing you are getting a far worse price than you could get if they sell all the units individually. Investors won't actually have the option to tell them to sell all the units individually of course, but most people won't want to sell at such a discount to vacant possession value. Therefore fewer people will vote to sell in the block listing, and there will be a greater chance that PP get to keep the property on the platform for now.
Getting people to hold for now by dangling the carrot of potential greater selling value at some undefined point down the road (or to put it less kindly, by making the only current exit option as unattractive as possible) may work well in the short-term for getting people to hold, but if they're not going to actually explain how and when that value will be realised some time in the near future, then it doesn't seem like a good way to gain the trust of investors and build the platform for the longer-term.
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Post by overthehill on Nov 3, 2021 11:25:52 GMT
At the risk of sounding cynical, if they sell a unit now, the block will be broken when the 5-year anniversary comes round. This means that there will be a bigger gap between the investment value of the remaining block and the vacant possession value of all the units. This means that they can say that a "compelling reason to hold" is that if you sell in the block listing you are getting a far worse price than you could get if they sell all the units individually. Investors won't actually have the option to tell them to sell all the units individually of course, but most people won't want to sell at such a discount to vacant possession value. Therefore fewer people will vote to sell in the block listing, and there will be a greater chance that PP get to keep the property on the platform for now. Getting people to hold for now by dangling the carrot of potential greater selling value at some undefined point down the road (or to put it less kindly, by making the only current exit option as unattractive as possible) may work well in the short-term for getting people to hold, but if they're not going to actually explain how and when that value will be realised some time in the near future, then it doesn't seem like a good way to gain the trust of investors and build the platform for the longer-term. Since they have re-opened post-covid lockdown (I just assumed they were closed!) we've seen more carrots than a donkey sanctuary. They need to re-invent themselves with new investors. Post-Better changes have been minimal without being insulting. Not a good situation because the misalignment of their profits regarding the fees and our returns is even more disparate now. We want the property sold next week but if it takes a year better for Better.
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Post by c0nfuzed on Nov 15, 2021 13:56:35 GMT
Well, 98% of investors agreed with them (they say). So that's that then - I won't be realising my paltry return on this investment (before costs) any time soon. Bah!
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