Property Partner Thread

[HighlandTiger]

As we seem to have a number of forum members here, who are also investors with Property Partner, I thought it might be an idea to have a dedicated thread. Obviously there are threads about PP on other financial forums, but they are full of "armchair" financial advisors, and to be honest they do my head in.

At least here we can have sensible chats, with like minded people, who might like a heads up on new properties, or thoughts on the company. So post away anything and everything about PP. 

To start us off, PP have blogged a piece in response to the Chancellor's Autumn Financial Statement with regards to the increase in stamp duty with Buy to Lets. Good news for us it seems.

27th November 2015
The Autumn statement: Buy-to-let must adapt to survive

Our vision at Property Partner is to bring innovation to an outdated and inaccessible industry. We want to make the buy-to-let market better for investors, better for tenants, and also better for small developers – helping to ease the UK’s severe housing shortage. We’re delighted to see that this vision is shared by the government. Wednesday’s Autumn Statement included some welcome steps to get the supply side moving and help first time buyers: an increase in the housing budget, a boost for shared ownership, and crucially for those struggling in the capital, a London Help to Buy programme.

What does it mean for you as a property investor?

Hot on the heels of the changes to mortgage interest relief announced in the Summer budget, George Osborne has now unveiled a 3 percentage point increase in stamp duty for those buying buy-to-let properties. This change will affect purchases made after April 2016.

Property Partner, and our investors, won’t be impacted by the stamp duty hike – because corporate investors are excluded. As the consultation on this moves forward though, we will be working with the Treasury to ensure that Property Partner, and our investors, remain exempt.

Why won’t this tax increase apply to us?

Simply because our goals, and the ways we operate, are aligned with the government’s own ambitions. As George Osborne said yesterday:

“The higher rates will not apply to….corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda. The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.”

The government seems to be expressing a desire to imitate the German rental market, which is largely institutionalised and avoids the problems faced by the UK.

Here, a minority of rogue landlords, offering poor quality housing at extortionate rents, have given the whole industry a bad name. By professionalising buy-to-let, we can offer fairer rents and provide a better all-round service for tenants.

And what of the future?

From the outset, our vision was to bring an antiquated industry into the modern age. The new measures just announced in the Autumn Statement prove that these changes are not only long overdue – but are now vital. Buy-to-let must adapt to survive, and now, we’ve found a way to do this that benefits everyone. By using the power of the crowd, we can help solve the problems in the housing market – together.

 

 

[SilverPirate]

One thing that is on my mind, are we in a housing bubble and if/when it bursts, how will it effect this investment.?

I wish they would re-lease some properties in the evening, as i can not get to the sales in the day time, therefore can only buy re-released shares from other buyers.Therefore having more charges.

How has "your" investments in geared properties been?

 

[Roy]

I invest in Property Partner. I have a few shares in each of 95 properties now.

I treat my investment in the housing market the same as I do in any other investment class: It will rise and it will fall.

I'm making a profit on the property, yet my PM investments look bad. All part of a diversified portfolio.

I'm forever blowing bubbles 

The geared properties are still new, I've yet to receive a dividend. I believe the first will arrive Dec 5.

[HighlandTiger]

With dividends of around 3%, we are least turning over a profit. I doubt there will ever be a major long term housing bubble burst for one simple reason.

Our population is increasing by around 0.6%-0.7% per year, house building is increasing by 0.5%-0.6%.

Whilst this figure remains there will always be more buyers than sellers. Simple supply and demand

[Pete]

I was an investor in commercial office block properties, mainly city centres like in Leeds.
These properties were fully let to good tenants on 20 year leases with increasing rents and all was perfect until the financial crash a few years ago.
Money was being made because the rents were higher than the geared bank loans but when the properties were revalued they were on paper worth less than the loan from the bank. That resulted in the banks taking the properties from us then selling them off and a year or two later the values were back up and the new owners were cashing in whilst we all lost our initial investments. 

[HighlandTiger]

New property available in 10 minutes

[SilverPirate]

Just dropped £50 in and had some shares. Lucky i am at home today, but that's all i got spare dosh. It's going fast.

[HighlandTiger]

1 minute ago, SilverPirate said:

Just dropped £50 in and had some shares. Lucky i am at home today, but that's all i got spare dosh. It's going fast.

Got my £50 as well :). Not going as fast as the geared properties, but will be fully funded in the next 20 mins I would have thought.

A 9% discount on the purchase price will make the value of the shares jump on the secondary market

[SilverPirate]

Yes defiantly slower than the geared. Got to keep these shares until .Cross rail opens,we will see what these shares do then.Need to get myself a better phone so i can buy some more shares in the future when i am at work.Trouble is i am to tight to upgrade. At least buying from Property Partner the wife won't moan because there is another package in the kitchen for me that come today.

[SilverPirate]

https://www.youtube.com/watch?v=pkdYc9XYr4M 

Found this today might help explain how it works ,if any one is curious.

[HighlandTiger]

Still a few grand left in today's property if anyone is interested.

[HighlandTiger]

Monthly dividends paid today along with a bunch of updated valuations. My portfolio is currently valued with a nice little profit of 2.57% to date. I've now covered all my buying costs etc, so hopefully this figure with increase quite a bit as the months tick over. 

[HighlandTiger]

Heads up New geared property on sale Wed 12:30.

The geared properties usually go within a minute or two. So get practising using your fastest fingers.

[SilverPirate]

Hell's bells they don't hang around do they, They could give us little investors time to get some dosh up after the last one.I might have to miss this one paying builders at the moment.

[HighlandTiger]

sell some of that crappy silver and you'll soon put together £50.

[Roy]

They have been quite regular! One a week for a long time time now. Let's say £2600 minimum a year if you wanted a slice of every pie?

Or a nice Sovereign each month?

200 ozs of silver.

A regular supply of fags.

A night on the piss with a kebab on the way home every weekend.

(All relative of course, and not London prices!) 

[SilverPirate]

1 hour ago, HighlandTiger said:

sell some of that crappy silver and you'll soon put together £50.

The rate my extension is going i might be selling the stack to help finance it any way, fingers crossed it won't come to that, I wonder if the builder will take my silver and gold as part payment? Mmmmmmmm me thinks.

[Roy]

Oh well, this could be the end for 'the little man'....... sigh

From PP:

'In response to customer feedback, we’re trialling a ‘pre-order’ system. It aims to provide convenience, meaning that you don’t need to structure your schedule around our property launch timetable. Please note: Your account must be funded with the required amount before we receive your pre-order e-mail. We cannot currently accept pre-orders below £250.'

[SilverPirate]

Only part of the property is being funded by pr-order,how much of a percentage i don't know and the rest is going up as normal at 5pm the 10th of December.

I liked to do a £50 buy in, just to dabble in small increments, if i had £250 to spare i would be buying a sovereign and keep the change.

We can fund our accounts in £50 at a time if we wanted to and wait till there is £250 in the pot and buy then, albeit  not so often.

[Roy]

Yes, you're right SP. I was probably being a bit reactionary! 

I just saw it as becoming another game that only the rich can play.

I agree, there is a chance to get some cash in, but I'm still unhappy with the disparity.

There is greater opportunity for those with wealth. 

[SilverPirate]

Totally agree with you Roy, You need money to make money.I suppose all new ideas are liquid and subject to changes.

[HighlandTiger]

I've been in contact with PP on this very subject, expressing my worries regarding the "little man" and the £250 minimum. This is a one off trial at the moment, after which they will be reviewing customer feedback. Oh and they asked me to be part of their "customer feedback team". giving them regular feedback on their business. Which I agreed to. So hopefully I'll be able to put forward any queries anyone here has in the future.

Don't forget the rest of the property not sold through the pre-funding will be available from 5pm today, you'll need to be on your toes because who knows how small the pot will be.

 

 

 

[SilverPirate]

I was going to buy some shares in the latest one until they did this, so i sat on my spare cash till today and spent it on gold instead.I defiantly would of bought some shares if they did it the old way yesterday. 

[HighlandTiger]

From what I can gather from watching the screen, they prefunded about 90% leaving about £60k up for grabs. I got my £50 :), but the rest took less than a minute to go. 

If I wanted up to about £5k, I probably would have been fast enough to get it. Any more and I think I would have struggled.

 

 

[Roy]

I wasn't as bad as I'd thought. Even though it was heavily prefunded, circa 90%, there was still an opportunity to get a few quid in and the property went just as fast as any other geared property has. I wonder if that last 10% of investors were just 'the little men' with their £50 in hand?

Perhaps PP could consider that? The last 10% of any investment is capped, open to small investors only? (I'll develop my thinking later)