hazellend
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Post by hazellend on Jan 1, 2016 18:24:52 GMT
I'd second it too. Or is third?
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Maestro
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Post by Maestro on Jan 2, 2016 8:09:35 GMT
I use Property Partner, and would favour a sub board.
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ben
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Post by ben on Jan 6, 2016 10:13:29 GMT
Another new property as the email says
Our first property this year is aptly named Prospect Court - a fresh, modern-looking building of 10 flats, secured at a 14% discount to its RICS break-up value and offered with gearing for enhanced returns. With an attractive dividend yield of 4.44% this property is a great opportunity to diversify into the West Midlands.
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shimself
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Post by shimself on Jan 6, 2016 10:49:28 GMT
Another new property as the email says Our first property this year is aptly named Prospect Court - a fresh, modern-looking building of 10 flats, secured at a 14% discount to its RICS break-up value and offered with gearing for enhanced returns. With an attractive dividend yield of 4.44% this property is a great opportunity to diversify into the West Midlands. Ben - for tidiness sake can you change your profile so it declares that you are representing a platform I'm new to PP (but not new to p2p!). Are you thinking of putting a q&a on the site - for me this is at the very heart of p2p - being able to piggyback on other people's competences and expertise, and keeping you, the platform up to the highest standards, making sure you don't forget anything - practically all the platforms have had the experience of pulling or significantly changing some offers as a result of q&a, it is good for everyone. This offer TF9. As I understand it there is a mortgage for about half the purchase price - forgive me if I have missed it but on what terms? Are we vulnerable to interest rate changes? What is your reasoning (because I would have thought it would be better for us lenders not to be paying interest out)? As a niggle on the site - you are asking us to send a pre-order AFTER you have received funds. Why are you giving me the job of remembering to do it - I want to make the bank transfer and tell you what it is for at one and the same time, not to have to do the job in two stages separated by some hours. Please rethink this. (I suggest by saying the money has to be with you by X date) Any new on your moves into Europe
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ben
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Post by ben on Jan 6, 2016 11:00:07 GMT
sorry i was just copying from the email
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shimself
Member of DD Central
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Post by shimself on Jan 6, 2016 12:26:15 GMT
sorry i was just copying from the email whoops sorry. I've pestered them by email now
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Post by Financial Thing on Jan 6, 2016 13:19:52 GMT
Another new property as the email says Our first property this year is aptly named Prospect Court - a fresh, modern-looking building of 10 flats, secured at a 14% discount to its RICS break-up value and offered with gearing for enhanced returns. With an attractive dividend yield of 4.44% this property is a great opportunity to diversify into the West Midlands. Ben - for tidiness sake can you change your profile so it declares that you are representing a platform I'm new to PP (but not new to p2p!). Are you thinking of putting a q&a on the site - for me this is at the very heart of p2p - being able to piggyback on other people's competences and expertise, and keeping you, the platform up to the highest standards, making sure you don't forget anything - practically all the platforms have had the experience of pulling or significantly changing some offers as a result of q&a, it is good for everyone. This offer TF9. As I understand it there is a mortgage for about half the purchase price - forgive me if I have missed it but on what terms? Are we vulnerable to interest rate changes? What is your reasoning (because I would have thought it would be better for us lenders not to be paying interest out)? As a niggle on the site - you are asking us to send a pre-order AFTER you have received funds. Why are you giving me the job of remembering to do it - I want to make the bank transfer and tell you what it is for at one and the same time, not to have to do the job in two stages separated by some hours. Please rethink this. (I suggest by saying the money has to be with you by X date) Any new on your moves into Europe From the property page re. mortgage: "The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc.
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j
Member of DD Central
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Post by j on Jan 6, 2016 17:41:16 GMT
In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc. As you've intimated, it;'s a question of investment level. If you're investing thousands of ££ in this one then yes maybe a lot more care & study is required. If you're talking about a few quid (min invesment here is £50) & you're happy to tuck that away for 2 yrs & not need it then it's a much easier decision to invest than not to. All relative.
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hazellend
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Post by hazellend on Jan 6, 2016 18:23:34 GMT
To be honest I don't think bigger investors do any more due diligence than smaller investors. I think property partner come across as extremely professional and trustworthy and see this is as the future of BTL so I've pretty heavily invested on their platform. Now if only I could get my money out of the other property platforms... but they will probably do very well in time too due to the inability to jump in and out of the investments.
Hopefully, in the event of a massive property crash these sites will allow ordinary bods access to decent properties. The problem in the last crash was that although prices were down nobody was really selling so bargains were hard to come by (except in london with hindsight)
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jan 6, 2016 18:46:54 GMT
To be honest I don't think bigger investors do any more due diligence than smaller investors. I think property partner come across as extremely professional and trustworthy and see this is as the future of BTL so I've pretty heavily invested on their platform. Now if only I could get my money out of the other property platforms... but they will probably do very well in time too due to the inability to jump in and out of the investments. Hopefully, in the event of a massive property crash these sites will allow ordinary bods access to decent properties. The problem in the last crash was that although prices were down nobody was really selling so bargains were hard to come by (except in london with hindsight) The trick is to know when a crash will most likely happen & hold funds off till then (now where is that crystal ball?). Though ethically you wouldn't wish it on anybody to have reposessions or end up in a -ve equity situation. Such is life unfortunately nonetheless
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shimself
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Post by shimself on Jan 6, 2016 18:53:11 GMT
"The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc. I'm going mad - I cannot find the "property page" with the mortgage info. However - I am an investor. I don't want to borrow money at 4% (I wouldn't mind lending it at 4% on 50% ltv). On the current proposition that adds 80K to the costs (5yr 4% 400K).
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
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Post by j on Jan 6, 2016 19:49:38 GMT
"The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc. I'm going mad - I cannot find the "property page" with the mortgage info. However - I am an investor. I don't want to borrow money at 4% (I wouldn't mind lending it at 4% on 50% ltv). On the current proposition that adds 80K to the costs (5yr 4% 400K). And tha's assuming you willbe able to get 4% after 2 years. Most likely rates would have gone up by then.Even if it was minimal,it sill adds up. I cannot understand why they don't raise the full amount outright. I know it's a lot of money but I think the demand is probably there.
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Post by Financial Thing on Jan 6, 2016 20:10:45 GMT
"The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc. I'm going mad - I cannot find the "property page" with the mortgage info. However - I am an investor. I don't want to borrow money at 4% (I wouldn't mind lending it at 4% on 50% ltv). On the current proposition that adds 80K to the costs (5yr 4% 400K). The info is on the main page under the description
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shimself
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Post by shimself on Jan 6, 2016 20:48:57 GMT
I cannot understand why they don't raise the full amount outright. I know it's a lot of money but I think the demand is probably there. They prob. calculate yield based on cash invested rather than amount paid for the property? If the cash invested amount is lower, the yield looks better so it seems like a better deal. This is my reworking of their illustration in the FAQ. It seems to be so much against lenders interests I'm starting to doubt the whole thing. I've emailed them. (Of course I'm quite probably wrong) Attachments:
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Post by Financial Thing on Jan 6, 2016 22:58:57 GMT
They prob. calculate yield based on cash invested rather than amount paid for the property? If the cash invested amount is lower, the yield looks better so it seems like a better deal. This is my reworking of their illustration in the FAQ. It seems to be so much against lenders interests I'm starting to doubt the whole thing. I've emailed them. (Of course I'm quite probably wrong) The purchase price is £840k + fees
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