gaz2536
New Member
Posts: 4 
Likes: 2
|
Post by gaz2536 on Apr 10, 2016 19:36:44 GMT
Hi im new here and new to lending and need some advice.
My parent is giving me a large amount of money from the sale of house. Large to me but may not be to some of you guys. I want to invest it and as much as i would love to buy my own property to rent out it is no where near enough. So i was looking at the likes of property partner and crowd to let. What are the risks involved in this?. If i was to buy my own to rent out i know house prices rise and fall but it would be rented out so not so worried as i would just sit on it for 10 years or 20 years or longer as im in no rush as i would like a steady income from it. I understand repairs and waiting for tenants etc. Is there any chance of loosing every thing i put in even though i would own a certain amount of the property / properties.
Any advice would be great on the risks.
Gareth
|
|
|
|
Post by Financial Thing on Apr 10, 2016 21:55:01 GMT
Hi im new here and new to lending and need some advice. My parent is giving me a large amount of money from the sale of house. Large to me but may not be to some of you guys. I want to invest it and as much as i would love to buy my own property to rent out it is no where near enough. So i was looking at the likes of property partner and crowd to let. What are the risks involved in this?. If i was to buy my own to rent out i know house prices rise and fall but it would be rented out so not so worried as i would just sit on it for 10 years or 20 years or longer as im in no rush as i would like a steady income from it. I understand repairs and waiting for tenants etc. Is there any chance of loosing every thing i put in even though i would own a certain amount of the property / properties. Any advice would be great on the risks. Gareth Hi Gareth If you are asking is there a way to lose everything investing through one of the crowdfunding sites such as Property Moose, Property Partner, answer is, it's unlikely but yes, there are risks involved and in theory you could lose everything. If you can afford to buy your own Buy-To-Let, then you have full control and the likelihood of losing everything is minimal (providing you buy a sensible rental). Depending on your age, I suggest you pay off your debts first before investing. Anything such as a car loan, credit card, student loans etc. I can tell you from experience that on Property Moose, the yields have been much lower on some properties than estimated, and occupancy has been lower, so there's examples of the risk. Much of crowdfunding property investing is speculation because none of the properties have reached term yet. I would advise you not to put in more than you could afford to lose if things went wrong. Also do your own valuations and calculations as they can be inflated at times. I am cautiously optimistic about this industry though but only time will tell. Best of luck
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Apr 10, 2016 23:11:31 GMT
I'm not sure now is the best time to be starting buy to let (BTL). The government has made quite a few changes recently in an attempt to discourage BTL. Prices in many (but not all) parts of the country are high. Many of these will impact both crowd funding and doing it on your own. Also there have been changes to dividend taxation which will be advantageous for some but worse for others. These might well impact crowd funding.
I don't invest in Property Partner (PP), but as far as I understand this it isn't a loan. You are buying an investment in a company which will own a house. If the house burns down and there was a problem with the insurance you might lose everything. If the company running the investment had made mistakes in setting things up (not impossible given that this is new and untested) you might lose everything.
The good thing about sites such as PP is that you don't have to buy a whole house. You could split your investment across several properties with them and with their rivals. However, you are right that you might be forced to sell when you don't want to because that is what was originally agreed, or has subsequently agreed by the shareholders. This is one of the main reasons I haven't invested in these companies.
I would be very cautious and invest very slowly, and wait until you see the delays taking place and the costs involved before you invest much of your money.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Apr 11, 2016 10:23:52 GMT
I invest in PP and PM and at the moment as had been put before the yield is not as good as hoped.
You might be better paying of any debts, setting up a few bank accounts especially with the new tax arrangement you should be able to get 3 to 4 % on about £40,000 pretty much risk free then maybe an isa and invest only a small portion of your assets to begin with to get the feel of it.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 11, 2016 20:56:08 GMT
I invest in PP and PM and at the moment as had been put before the yield is not as good as hoped.
You might be better paying of any debts, setting up a few bank accounts especially with the new tax arrangement you should be able to get 3 to 4 % on about £40,000 pretty much risk free then maybe an isa and invest only a small portion of your assets to begin with to get the feel of it. All my PP ones are doing better than the intial predicted. PM, not so well, but being patient helps.
|
|
|
|
Post by alexaus on May 5, 2016 11:14:14 GMT
my advice ti open a bank account and after that buy properties which you like
|
|
