adrianc
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SPV 39
Feb 19, 2016 9:11:44 GMT
Post by adrianc on Feb 19, 2016 9:11:44 GMT
I'm starting to wonder if the slow down in the take up of properties with both PM and PP , (not sure if a similar thing is happening with HC), are due to people being maxed out on these sort of investments. With only a few thousand people currently investing in these companies, it doesn't take much to slow things down if these people run out of investable cash. Then add in the (ill-judged, imho, but that's by-the-by) move from £500-min to £10-min, and you'll have those few people spreading what cash they DO have thinner. Who'd put £500 on one property, when you can spread the risk by putting it on 10 or 25? Increased admin cost and multiplication of the number of the investors you need to attract. Average investor puts £500 on, and you need £100k, you need 200 investors. Average investor £50, you need 2,000 investors. I don't think the timing of this one stalling is a coincidence. I'd have been wary enough at a change from £500 to £100 minimum. To go from £500 to £10 in one step? They should have seen this coming.
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ben
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SPV 39
Feb 19, 2016 15:44:48 GMT
Post by ben on Feb 19, 2016 15:44:48 GMT
I'm starting to wonder if the slow down in the take up of properties with both PM and PP , (not sure if a similar thing is happening with HC), are due to people being maxed out on these sort of investments. With only a few thousand people currently investing in these companies, it doesn't take much to slow things down if these people run out of investable cash. Then add in the (ill-judged, imho, but that's by-the-by) move from £500-min to £10-min, and you'll have those few people spreading what cash they DO have thinner. Who'd put £500 on one property, when you can spread the risk by putting it on 10 or 25? Increased admin cost and multiplication of the number of the investors you need to attract. Average investor puts £500 on, and you need £100k, you need 200 investors. Average investor £50, you need 2,000 investors. I don't think the timing of this one stalling is a coincidence. I'd have been wary enough at a change from £500 to £100 minimum. To go from £500 to £10 in one step? They should have seen this coming. Could not agree more with the PP ones the last few were only getting about 30-50% of amount prefunded so I guess the money is still there just the properties are not currently as good so less people want to invest. With PM it made no sense to go down that much as they were selling, if they wanted to attract others would have been better in stages, all they have done is attracted a few small investors and others to reinvest monthly payments not gained any particular financial gains.
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j
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Penguins are very misunderstood!
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Post by j on Feb 19, 2016 16:38:42 GMT
Speaking for myself only & not others, I could only say the main issue lately has been the (perceived) quality of props on offer. I'd have no issue, if cash available, to put £500 or more, regardless of change in min investment amounts, if I felt the possible return & valuation matched what I'm comfortablewith from an investment mid-long term point of view. All relative to different people of course.
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SPV 39
Feb 20, 2016 15:43:40 GMT
Post by Financial Thing on Feb 20, 2016 15:43:40 GMT
Speaking for myself only & not others, I could only say the main issue lately has been the (perceived) quality of props on offer. I'd have no issue, if cash available, to put £500 or more, regardless of change in min investment amounts, if I felt the possible return & valuation matched what I'm comfortablewith from an investment mid-long term point of view. All relative to different people of course. Totally agree. I think some people believe whatever PM offers up is a good investment. Maybe others are slowing down realizing not all offerings are worthwhile. Property Partner has no problems filling up its good offering with a £10 min. Nor does SS. My hope from all of this is PM searches out better deals for its investors.
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ben
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SPV 39
Feb 20, 2016 18:26:25 GMT
Post by ben on Feb 20, 2016 18:26:25 GMT
Speaking for myself only & not others, I could only say the main issue lately has been the (perceived) quality of props on offer. I'd have no issue, if cash available, to put £500 or more, regardless of change in min investment amounts, if I felt the possible return & valuation matched what I'm comfortablewith from an investment mid-long term point of view. All relative to different people of course. Totally agree. I think some people believe whatever PM offers up is a good investment. Maybe others are slowing down realizing not all offerings are worthwhile. Property Partner has no problems filling up its good offering with a £10 min. Nor does SS. My hope from all of this is PM searches out better deals for its investors. PP for actually funding the buying of the property is £250 which is probably better as if was only £10 would probably take a long time
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SPV 39
Feb 20, 2016 18:53:42 GMT
Post by highlandtiger on Feb 20, 2016 18:53:42 GMT
Totally agree. I think some people believe whatever PM offers up is a good investment. Maybe others are slowing down realizing not all offerings are worthwhile. Property Partner has no problems filling up its good offering with a £10 min. Nor does SS. My hope from all of this is PM searches out better deals for its investors. PP for actually funding the buying of the property is £250 which is probably better as if was only £10 would probably take a long time That is only for prefunding. If you wish to invest in a new property after pre-funding, then the minimum is £50.
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j
Member of DD Central
Penguins are very misunderstood!
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SPV 39
Feb 20, 2016 19:55:54 GMT
Post by j on Feb 20, 2016 19:55:54 GMT
Don't forget that PP has also struggled in the last 2 props. They have had to offer double divi for both & even then I believe one is still less than half full. The quality of the property & how genuinly deeply discounted are still paramount parameters in judging how well it might perform as an investment long term.
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SPV 39
Feb 21, 2016 6:03:02 GMT
Post by Financial Thing on Feb 21, 2016 6:03:02 GMT
Before PP started pre-funding their offerings used to sell out very quickly. I think the slowdown for them has occurred because of the geared properties.
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SPV 39
Feb 21, 2016 8:53:26 GMT
Post by highlandtiger on Feb 21, 2016 8:53:26 GMT
Before PP started pre-funding their offerings used to sell out very quickly. I think the slowdown for them has occurred because of the geared properties. I both agree and disagree. Whilst the current obsession at PP with geared properties has certainly slowed down my modest investments with them, (mindful that property markets have a habit of taking two steps forward and one step back, and I don't want to caught too much on the backward step), I also think that the recent high values of the property blocks they have been buying has also something to do with it. Before the Tower Hill flats, 16 of the 17 properties were less than £300k. After and including the Tower Hill flats, only 2 of the next 27 purchases were below £300k. With a limited investor base, it takes longer for a £1,500k property to fill than a £250k one. My worry is that PP are trying to run before they can walk. They should return to buying single properties outright without a mortgage, in the £300k range looking to add capital profits on price increases due to location and the benefits of commuting into London via Crossrail as it comes online
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ben
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SPV 39
Feb 21, 2016 10:50:26 GMT
Post by ben on Feb 21, 2016 10:50:26 GMT
Before PP started pre-funding their offerings used to sell out very quickly. I think the slowdown for them has occurred because of the geared properties. I both agree and disagree. Whilst the current obsession at PP with geared properties has certainly slowed down my modest investments with them, (mindful that property markets have a habit of taking two steps forward and one step back, and I don't want to caught too much on the backward step), I also think that the recent high values of the property blocks they have been buying has also something to do with it. Before the Tower Hill flats, 16 of the 17 properties were less than £300k. After and including the Tower Hill flats, only 2 of the next 27 purchases were below £300k. With a limited investor base, it takes longer for a £1,500k property to fill than a £250k one. My worry is that PP are trying to run before they can walk. They should return to buying single properties outright without a mortgage, in the £300k range looking to add capital profits on price increases due to location and the benefits of commuting into London via Crossrail as it comes online I agree I am not a great fan of the gearing either although have put money on some, much rather buy a smaller place outright and not pay any mortage rates
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webwiz
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Post by webwiz on Feb 21, 2016 16:09:30 GMT
Mods yet another PM thread taken over by PP discussions. Can we have a separate PP board?
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