Crowd funding property - minimum investment £50

[morezone]

Should have no effect since the property is fully cash funded.

[HighlandTiger]

No mortgages on these properties, as they are cash purchases. So interest rates rising won't affect directly.

 

However indirectly if interest rates rise, people can less afford to buy their own homes, which will increase the number of people wanting to rent properties, which means rent prices could increase slightly, and thus increasing the dividend profits on buy to lets.

[KDave]

Interest rate rises could have the effect of causing housing supply to increase at the same time demand to buy falls. The main supply increase will likely come from heavily leveraged buy to let which would naturally become more difficult to keep profitable. Along side the higher taxes outlined in Osborne's Budget this would seem the likely group from which supply will originate rather than the traditional group that struggle during interest rate rises - owner occupiers - although they will undoubtedly account for some of the supply. 

 

A cash bought property would be immune to the rate rise as HT has said and demand for rented accommodation will likely increase until the fundamentals change further. 

 

Edit: Clarity

[HighlandTiger]

After my email to PP about improvements in transparency, where they replied something was coming soon, today they sent an email and posted this on their website. Some very interesting information, way more than I was expecting.

 

It can be found here......... https://resources.propertypartner.co/open-house-july-2015/

 

A point to note from the website, which I find very encouraging is this.

 

In those first 6 months, investors have invested over £6.42m with us, £5.46m of which is in New Listings, and £0.96m in Resale purchases. The Resale activity is particularly encouraging, providing investors a potential option to exit (in addition to the 5 yearly exit protections).

[Investor1989]

So let's say I invested in a property or flat through Property Partner. Would I still have to pay a monthly management fee of 12.5% to PP even if the property or flat that I invested in hasn't been rented out to a tenant? Would really like to know guys.

[HighlandTiger]

I'm assuming the answer would be yes.

[Investor1989]

I'm assuming the answer would be yes.

Damn it!

[HighlandTiger]

But on the good side. Every property has never had a time without a tenant to date, and most of the properties were bought with sitting tenants. Some long term.

[Investor1989]

But on the good side. Every property has never had a time without a tenant to date, and most of the properties were bought with sitting tenants. Some long term.

I'm glad you mentioned that, HT.

[HighlandTiger]

One thing that really impresses me about Property Partner is their transparency about their entire business.

 

The front page of their website now includes running totals of the following

 

Total amount invested

Total number of Investors

Total number of Properties

Total amount of dividends paid

Total amount of shares sold on resale market

 

 

 

[shemyaza]

I'd rather buy Vedanta at 430p and sell it at 500p, that's such a pedictable spoon feed of money.

[HighlandTiger]

Not quite sure what an Indian metals and mining company has to do with a thread on a UK property crowdfunding company, but hey, go for it 

[SilverPirate]

For those of you that have invested in crowdfunding these property's how is it going? up?down?indifferent?

Thanks S.P.

[HighlandTiger]

I'm invested with property partner. Dividends from rent have been paid on time and most of the properties have increased in value. I'm extremely impressed so far.They have another property going live on Wednesday and I will be investing another small amount again

[SilverPirate]

I have booked marked Property partner,i will have a look on Wednesday. cheers HT.

[SolidSilverBogbrush]

I'm happy so far with PP. But it's still early days. I have £1000 invested.

[SilverPirate]

Well i did it i bought 348 shares in a property in West Drayton,my plan is not to sell till retirement but we will see.

[HelpingHands]

Are there any which do shares in new build apartment blocks? They seem to sell for a lot more than I imagine they cost to build.

[HighlandTiger]

@SilverPirate and others a new property has gone live on PP It was bought at a 10% discount through being a cash buyer. Should yield immediate profits re. valuation. I've bought a few shares myself. Can't see this one lasting long before it has been fully funded

[SilverPirate]

I got tradesmen in at the moment and money is slipping through my fingers, i need to keep a tight reign for a while, i will be back on it though.  

[HighlandTiger]

PP has now got a TV advert 

 

[SilverPirate]

Here is little breakdown of my dealing with PP.

 

£100 Original funding via debit card.

PP fee £1.94 Total down to £98.06.

£0.49 Tax on purchase of shares,Total down to £97.57.

348 Shares bought,Total down to  £0.13.

 

Latest valuation £96.19.

August dividend just paid £0.22.

Available funds £0.35.

 

I will have to wait a while for the original £100 to level back but long term is the plan.

 

I hope this shows how things breakdown if you are thinking about investing in PP,(Property Partner).

I did this to see what it is all about. 

[HighlandTiger]

Here is little breakdown of my dealing with PP.

 

£100 Original funding via debit card.

PP fee £1.94 Total down to £98.06.

£0.49 Tax on purchase of shares,Total down to £97.57.

348 Shares bought,Total down to  £0.13.

 

Latest valuation £96.19.

August dividend just paid £0.22.

Available funds £0.35.

 

I will have to wait a while for the original £100 to level back but long term is the plan.

 

I hope this shows how things breakdown if you are thinking about investing in PP,(Property Partner).

I did this to see what it is all about. 

 

Just a point to note. You bought your shares on the secondary market, hence the tax fee of 49p. If you had bought a new property then you would not pay that fee.

 

Also in reading their latest "Open house", where they divulge all the financial information, https://resources.propertypartner.co/open-house-august-2015/, I spotted a very interesting paragraph.

 

We have already seen 18% of property shares trade on the Resale market and for our first-funded property, which has had longer to trade, more than 90% has already traded. The length of time taken to sell shares in the Resale market varies according to the price at which shares are offered. For shares that have been offered at a ‘fair price’ (in other words, with no premium to the Latest Share Valuation), the weighted average time to sell in the Resale market has to date been just 4 hours.

[SilverPirate]

I am still learning,just dipping my toe in the crowd funding thingy see where it takes me.

[Lea79]

I've been investing a little bit a mth for 4 mths and I'm pleased with how it's going. I'm thinking it's going to take a little while for the dividends to accumulate ATM I'm getting a whopping £1.06 a mth lol. 2 of my properties have increased in value which is good.

I made the mistake of buyin a property on the resale market as my first purchase which was a massive 17% above market value!! It's gonna take 5yrs worth of dividends to get my money back but hopefully in that time the property would have increased in value as it is one of the specialised themed properties.

I am a little disappointed that the last 2 mths all the properties have had quite a low dividend yield of under 3%. Im considering re visiting the resale market this mth and paying a small % over market value to gain a better dividend yield.