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Post by khampson on Jun 1, 2016 13:13:44 GMT
I was a keen investor to PP last summer, I sold my shares last December, I was thinking about returning to PP as some money has come to me, its all changed, most properties are trading at below value, Why is this, is it because of lack of people buying on the secondary market also people wanting out of PP? also are people trying to make a quick return by selling the properties after the discounted properties have been revalued after 3 months, is it uncertainty regarding the EU or the new stamp duties on second homes if it applies?
After looking around it makes me wonder if there is any future in reinvesting in PP, I cant get my head around properties are trading at up to 12% below the valuation, I was going to stick 2k in here so can I ask others what are your thoughts on Property partner and the future of it, do you still regard it as a long term investment?
thanks for your advice.
Keith
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ben
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Post by ben on Jun 1, 2016 14:32:36 GMT
The website has been updated and probably not for the best.
Although do not let the discounts confuse you that is on the current values of the property not the price someone orginally paid for the shares. So once the first review was updated and the discount on purchase price was calculated into the shares value that made each share go up in value so people may be selling them for less then PP say they are worth but they are still selling them for more then they paid for them. A lot of people are probably trying do that why it shows as such a big discount but still a profit for them.
I invest in both PP and PM. PP seems to be based around price rises i.e London low rental yield but potential of significant property growth. I think the problem at the moment is that they have at moment is that they do not have active investors to keep on increasing in size as it.
If you were happy with the investment before I do not think anything has changed in the meantime.
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Post by alexb26 on Jun 1, 2016 15:23:58 GMT
I for one am very happy to buy up shares in old properties at the discounts available; the sheer volume available is surprising though. I guess looking at the aggregate value of properties on site and the number of investors it is just a case of not enough demand for shares around that allows discounts to exist. Assume people selling need the liquidity because I would need a very attractive destination for my funds to be selling with a 12% discount on par value!
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ben
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Post by ben on Jun 1, 2016 15:47:47 GMT
I for one am very happy to buy up shares in old properties at the discounts available; the sheer volume available is surprising though. I guess looking at the aggregate value of properties on site and the number of investors it is just a case of not enough demand for shares around that allows discounts to exist. Assume people selling need the liquidity because I would need a very attractive destination for my funds to be selling with a 12% discount on par value! Its easy profit for people but more then they want to hold sell on can maybe 10% in 3 months.
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Post by khampson on Jun 1, 2016 16:33:55 GMT
So there is a good chance this trend can continue and the surplus is property sales is far to demanding and PP have flooded the market. I don't know if I should put the money in PP or funding circle, I suppose if I plan to keep them for a few years then PP could be good, I suppose if you buy property at a discount you can afford to sell it at discount.
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ben
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Post by ben on Jun 1, 2016 17:50:57 GMT
So there is a good chance this trend can continue and the surplus is property sales is far to demanding and PP have flooded the market. I don't know if I should put the ure I money in PP or funding circle, I suppose if I plan to keep them for a few years then PP could be good, I suppose if you buy property at a discount you can afford to sell it at discount. If you planning on holding it makes no difference even if your planning on selling you will still probably sell at a profit to what you paid but potentially not as much if you held it. Quite a few properties are brought at 10/15% below price so when the revalue is done that is taken into account so a lot of people will carry on doing this in the future I would guess. Personally I would not buy on the secondary market as your only increasing risk and most of the potential gains have already been taken by others.
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Post by stumblemumble on Jun 2, 2016 12:56:16 GMT
If the market isn't growing as fast as PP appear to have forecast, based on their schedule of properties being offered, then I'm left wondering how that affects PP's own growth forecasts for the business and how they can sustain the difference (when it comes to servicing their fixed costs, anyway).
I wonder if their offers sometimes work against them, in the sense that bonuses and additional discounts (like double yield) might signal - to a market that is perhaps more cautious than usual - that there is something to be wary of. That mirrored my initial thoughts when I saw the offers and the very slow pace of take-up for more recent properties (whereas the first tranche I'd invested in went in minutes).
My investments are for the long-term, so the secondary market doesn't necessarily appeal to me. In that case, I'm wondering if I've been more concerned/wary than I should be.
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