macq
Member of DD Central
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Post by macq on Aug 8, 2017 18:22:14 GMT
quick question for people using PP and the answer may be in their very good faq section but my eyes have just glazed over reading it all But was wondering what happens after 5 years if the property is sold to the people who are renting,can the property only be sold to landlords there by losing some buyers or do they have to move out? I believe that the aim is to find a sufficient number of buyers 'on platform' to match the number of sellers at the five year exit points - ergo, the properties would never leave the platform. This suits PP (maximising AUM), suits the sellers (as they have a buyer) and suits those investors who wish to 'stick'. In the event that there isn't sufficient liquidity then Property Partner is obliged to sell the property at the best price it can achieve in the open market. In this situation, the treatment of the tenant will be at the discretion of the new buyer - subject to any remaining tenancy agreement - as it is with the purchaser of any tenanted property. The majority of PP tenancies will doubtless be ASTs, which typically enable the landlord to serve two months' notice on the tenant - something I'm sure PP will be increasingly aware of as the 5 year exit point draws closer. thanks for the feedback-i was also wondering about the number of flats they buy in a property or the one pre-funding now which is 4 homes when it comes up for resale but understand the idea of keeping it on the platform going forward
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littonowl
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Post by littonowl on Aug 16, 2017 15:13:18 GMT
A new property on the site today, 4 new apartments (2x studios and 2x1 bed) in a city centre location in C*****r in the NW.
Still offering the 5% promotion, yield dropping down to 3.54% after 2 years. Particulars:
Bought at 9.4% disc (bulk purchase) £670K v RICS mkt price of £740K
3.8% 5 yr fixed mortgage (so no inflation risk) Leasehold but 999 yrs. Exit strategy: will sell individually in 5 years for exit, to release value.
Rent for 4 flats: £45,600, which works out an average of £11,400 pa, or £950 pcm (a little ambitious perhaps, for C*****r ?).
As it happens, I used to live there and my sister still does, so I've a little local knowledge. The property is close to the City Centre (parking is a rarity in this area, so a big bonus!), and is in an area where several nice restaurants and street cafes have opened up recently, so is likely to be desirable to the young professional type.
On the downside the rent for studios and 1 bed apartments is on the high side for the city, though I note there are some nr the Racecourse being advertised at £2.5K pcm, so still by no means the most expensive, but pricier than most 1 bed offerings in the city (I'd say the average is nearer £500-£650 pcm).
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sd
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Post by sd on Aug 17, 2017 6:03:22 GMT
Nice summary. cheers
To my knowledge Property Partner have always paid their advertised yield/dividend. Its part of the reason they have a good reputation compared to their smaller competitors. In fact they have just unexpectedly increased dividends on one of my properties, so I assume the annual rent forecasts are sound.
The North West has not always ticked all the boxes for me but this property looks to be a good one.
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kaya
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Post by kaya on Aug 17, 2017 11:44:43 GMT
6% at uown - and a 25% free share top-up today and tomorrow. Not sure about guaranteed dividends. Giving them a wee plug here, would like to see this over the line (70% filled). I'll collect the commission later!
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Post by sayyestocress on Aug 17, 2017 16:31:24 GMT
6% at uown - and a 25% free share top-up today and tomorrow. Not sure about guaranteed dividends. Giving them a wee plug here, would like to see this over the line (70% filled). I'll collect the commission later! Uown's offer is tempting, but I'd say it's much more risky putting money uown's way than PP. PP has several years of trading under it's belt with a large back catalogue of properties and active SM. Uown has been struggling to shift it's first listings for what seems like months now. That makes me uneasy and unwilling to invest at this point (not to mention the tone of their website really grates with me). Low demand means low chance of exit liquiity and low chance of them really getting off the ground in my inexpert opinion. You can get ~6% on the Brickowner (also relative newbie like uown) offerings; they don't fill as fast as PP but they sure do fill quicker than uown's! SM hasn't materialised yet, though.
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ding
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Post by ding on Aug 23, 2017 13:13:11 GMT
Office block 12x flats @ Liverpool went up today. Ugly front / Ugly bathrooms. Got to love the bog role on top of the system. But people have to live somewhere!
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nrw
Posts: 61
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Post by nrw on Aug 23, 2017 14:14:23 GMT
Office block 12x flats @ Liverpool went up today. Ugly front / Ugly bathrooms. Got to love the bog role on top of the system. But people have to live somewhere! We're investing in it, not living in it... the most beautiful houses (eg £50m Holland Park piles) make terrible investments right now (shocking income yield + capital loss), so we need to invest with our heads not our hearts!
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Post by sayyestocress on Aug 23, 2017 14:14:26 GMT
Office block 12x flats @ Liverpool went up today. Ugly front / Ugly bathrooms. Got to love the bog role on top of the system. But people have to live somewhere! I've rented flats with much worse bathrooms than that in my younger years
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