Property Moose

[HighlandTiger]

I've recently been investing small amounts in Property Moose, a crowdfunding company that allows investors to start investing from as little as £10. Properties are mainly in the north, with excellent rental yields of around 7% pa.

They do have a referral scheme if anyone is interested, where a new investor can get a £10 credit. This sort of investing is not for everyone, and I would expect people to do their own research, but if anyone is interested in getting this bonus, feel free to PM me, and i'll send the details.

www.propertymoose.co.uk

 

[ApisMellifera]

Thanks for the share,

I've been researching in property and also interested in the crowd funding side of things.

Always good to hear and learn about these new 'developments'.

I've send you a PM.

How long have you been using this site?

[HighlandTiger]

been with PM for about 3 months but have been with property partner as well for about 9 months

[ArthGoch]

 

5 hours ago, ApisMellifera said:

Thanks for the share,

I've been researching in property and also interested in the crowd funding side of things.

Always good to hear and learn about these new 'developments'.

I've send you a PM.

How long have you been using this site?

Just one flag that I would raise in respect of the Property Moose model, (or it was about six months ago), is the exit strategy and the percentage of the SPV shareholders required to retain the property after the allotted rental period.

The way the terms of the SPV have been created, 85% of the shares need to be in favour of retaining the property, conversely only 15% can force a sale. In most cases you would assume that market conditions would dictate a consensus; that is if the current value (at the time of maturity)  of the property is below purchase cost everyone would vote to retain. However the added clause to the SPV terms is that those that do not vote will be assumed as being in favour of a sale, while secondly there is the ever real possibility that some parties are desperate to encash their holding as they need liquidity even if this results in a reduction in theirs and all SPV shareholders initial capital outlay

I had a number of email discussions with Property Moose management on the matter, and they conceded that they were advocating this sale/retain ratio as a way of dictating that sales will take place more often than not and which in turn was built into their revenue model. For me this tipped the risk v reward element to a greater degree of risk than what I was prepared to hold.

May be this SPV terms has been amended in the last six months, or there again  you are happy to take the risk as this does ensure liquidity sooner rather than later. Like all P2P there are some good points and also some negatives; we just need to be aware of what they are 

 

[HighlandTiger]

PM will be creating a secondary market before the end of the year. They are currently revamping their website in preparation for this.

I have no problem with selling at the end of term though. If you are putting one large sum in a property and you don't want to sell after 3 years then I would humbly suggest that this sort of venture is not your cup of tea. However most investors will he investing small amounts in lots of properties over a longer period of time, taking the capital gains after three years and continually reinvesting the returns into newer properties and then continuing the cycle. It actually makes great economic sense to me. I certainly don't want to be holding a property long term especially when the maximum initial uplift in capital gains is often in the first year or so after allowing for the value of the property to rise after referbs or after the discount PM achieved from being a cash buyers

[vand]

Sorry to ask the bl00dy obvious... but what happens if the residential property market heads south and you are forced to liquidate at below the price the property was brought for?

To me, the whole UK property market is the single biggest asset bubble this country has ever witnessed, thanks to 5 years of ZIRP. What downside protection does PropertyMoose have?

7% sounds too good to be true without considerable risk, and one thing I run from are proposals that sounds too good to be true.

Investing in property was a good idea when prices made sense. Was. At current prices, not any more. It's one of the worst. There are no properties still yielding 7% when mortgages are 2%, or if there are then they require substantial work/overhead.