New product: Buy-to-Sell property 'flipping'

IMO the flaw with this product is the very high acquisition and disposal costs, which seem likely to exceed the amount of the discount, unless for some reason these costs are much lower for BTS than they have been so far for BTL.

Edit: continued in next post

Probably depends on how much of a discount they bought it for really, I don't know the history of that one but it does seem like the renovation costs were sufficiently high that it would never have made a good flip anyway.

I missed it too, was gone in under an hour. But margins looked a little tight on this one so was not too unhappy. The loan is still there and has similar projected returns with less risk (IMO).

The pictures of the actual house (rather than the ones originally published) are much less attractive, there is no garage and the garden has a frightening slope in to the corner.

This preannounced one (SPV 77) probably went in about 5 minutes, so not much time to inspect the numbers if you wanted to buy...

Forgot about it and all gone when I logged in 7 min late. That said Im afraid I dont really get this one.

The predicated annualised return is less than 7% according to the email (cant see actual listing) whereas the loan pays 7% (email says 9% buts its a typo) so certainly looks like people were investing blind or are optimistic of achieving a much better uplift in value (not sure in the short term with Article 50 uncertainty its a risk Id take) So I'll take the guarenteed 7% return.

What have I missed?

Edit: silly me assumed putting the SM into newest first order would show this one in the first line, having read it now I see that the email was a load of nonsense and the figures do actually make sense for the equity investment. Oh well, time for a memory upgrade

I've only just seen this, so not really had chance to fully digest, but to me the margins for error are pretty tight, once you've factored in all the costs, and relies heavily on the accuracy of the estimated sales price? A sale price of £136K instead of the estimated £138,700 and all the profit is wiped out, if I'm reading things correctly?! I guess ultimately its a case of seeing how good PM are at securing that sale price...?!

To me the loan portion would be the safer deal, 3.5% over 6 months, but even then, you can find much better rates for loans secured against property on similar LTV's, elsewhere...?