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Post by smrutib on Feb 3, 2016 12:30:53 GMT
Newbie on PP here. Trying to wrap my head around the difference between buying on the secondary market vs primary (except the 0.5% extra charge)
Who bears the upfront costs of buying the property? The primary market buyers? If so are they compensated for that solely through the discount at which the property is sourced by PP?
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ben
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Post by ben on Feb 3, 2016 12:50:48 GMT
Newbie on PP here. Trying to wrap my head around the difference between buying on the secondary market vs primary (except the 0.5% extra charge) Who bears the upfront costs of buying the property? The primary market buyers? If so are they compensated for that solely through the discount at which the property is sourced by PP? The orginal costs are built into the buying price and the value of the shares are worked out including that. Sometimes on the secondary market you can buy at a discount but most of time you can not, at the moment they seem to be doing a property about once a week so no need to rush, there is two on there now that are new and not funded.
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ben
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Post by ben on Feb 4, 2016 15:15:31 GMT
So what is the general thought on the new one, 8 flats, not exactly a great yield 2.20 and only 5% discount on its current value, looks like the last few have not been as good as one or two of the previous ones
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Post by Financial Thing on Feb 4, 2016 16:54:51 GMT
So what is the general thought on the new one, 8 flats, not exactly a great yield 2.20 and only 5% discount on its current value, looks like the last few have not been as good as one or two of the previous ones seems like a purely speculative gamble. For me a 5% discount and a low yield isn't an investment.
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ben
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Post by ben on Feb 4, 2016 17:08:18 GMT
So what is the general thought on the new one, 8 flats, not exactly a great yield 2.20 and only 5% discount on its current value, looks like the last few have not been as good as one or two of the previous ones seems like a purely speculative gamble. For me a 5% discount and a low yield isn't an investment. They seem to be better when they get the full block of flats rather then just a few
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Feb 4, 2016 18:16:16 GMT
So what is the general thought on the new one, 8 flats, not exactly a great yield 2.20 and only 5% discount on its current value, looks like the last few have not been as good as one or two of the previous ones Skipped the last & will skip this one too. Both the yiled & prospective cap growth do not look appetising. Hope I'm wrong for the sake of those who invest
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hazellend
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Post by hazellend on Feb 4, 2016 18:38:48 GMT
If prices stay stable or rise this one will do okay. The discount on the most recent london property was 10%. The yield is low but that's generally what you get with london property. It really all comes down to what you think is going to happen to property prices, and in London I still think up and away... for a while before the next dip.
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Post by highlandtiger on Feb 4, 2016 20:04:17 GMT
I'm getting fed up with all these geared properties, Whilst they are great for boosting profits if house prices rise, if the market stagnates or drops, as many analysts think it might over the next 5-10 years, then these properties will not be the cash cow people think they are.
I just wish they'd come up with some properties that don't have a mortgage hanging over them. If they keep on bringing in these geared properties at the expense of outright purchases of properties, then I'll be investing less with them and more with PM.
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ben
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Post by ben on Feb 8, 2016 15:31:09 GMT
I'm getting fed up with all these geared properties, Whilst they are great for boosting profits if house prices rise, if the market stagnates or drops, as many analysts think it might over the next 5-10 years, then these properties will not be the cash cow people think they are. I just wish they'd come up with some properties that don't have a mortgage hanging over them. If they keep on bringing in these geared properties at the expense of outright purchases of properties, then I'll be investing less with them and more with PM. At the moment the PM offers seem a bit better, will see if they release another one tommorow or not as doubt the new one filled and the previous one is still trying to fund.
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Post by Financial Thing on Feb 8, 2016 15:36:10 GMT
I'm getting fed up with all these geared properties, Whilst they are great for boosting profits if house prices rise, if the market stagnates or drops, as many analysts think it might over the next 5-10 years, then these properties will not be the cash cow people think they are. I just wish they'd come up with some properties that don't have a mortgage hanging over them. If they keep on bringing in these geared properties at the expense of outright purchases of properties, then I'll be investing less with them and more with PM. At the moment the PM offers seem a bit better, will see if they release another one tommorow or not as doubt the new one filled and the previous one is still trying to fund. The PM offering may appear better but PP's estimates are more realistic as they include sensible cushioning for expenses. Plus certain PM offerings valuations aren't realistic (IMO)
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ben
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Post by ben on Feb 8, 2016 15:54:31 GMT
There is nothing particularly wrong with the actual current valuation of PM the question is will someone pay that, its the same as when you buy a house , ask 3 estate agents to value it and you will get 3 different answers. The question is if you actually agree with them or not.
The valuation will be approximately what they are worth at this current time it is there projected worth by PM in 2/3 years time that I would agree is probably not realistic.
With regards to PP they are aiming more for growth in housing market, so who really knows what is going to happen they may be a crash or they may continue going up
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hazellend
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Post by hazellend on Feb 8, 2016 18:56:34 GMT
Does anybody know how much of the london flat went to prebid today? Just curious!
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ben
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Post by ben on Feb 8, 2016 18:59:42 GMT
Does anybody know how much of the london flat went to prebid today? Just curious! never bid so unless anyone else did we will not know until it comes on line tommorow
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Post by highlandtiger on Feb 9, 2016 1:07:37 GMT
Just noticed this on the Hastings block that is struggling to sell.
Double Dividend
All investments in this property are eligible for our Double Dividend promotion. Investors will receive an additional cashback payment to match their monthly Dividend payment every month for 12 months*. This will result in an effective income of 6.02% for the first 12 months. All investments in this property will count towards the promotion automatically – there’s no need to opt-in or use a bonus code.
Not had any emails on this but it does make the block look a little bit more attractive.
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j
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Penguins are very misunderstood!
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Post by j on Feb 9, 2016 7:42:02 GMT
Just noticed this on the Hastings block that is struggling to sell. Double Dividend
All investments in this property are eligible for our Double Dividend promotion. Investors will receive an additional cashback payment to match their monthly Dividend payment every month for 12 months*. This will result in an effective income of 6.02% for the first 12 months. All investments in this property will count towards the promotion automatically – there’s no need to opt-in or use a bonus code.Not had any emails on this but it does make the block look a little bit more attractive. 52.82% funded with 21 days to go. Clearly struggling to shift hence the above. Might have to look at the numbers again as we need to remember this is for 12 mths only. Will one be able to exit via SM within 12 mths?
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