Property investment

[Beano]

Anyone used a property investment crowdfunding website? I don’t have the money to be investing in my own property, but would like to chip in for someone else’s and make a few quid also. Anyone who has used these sites please share your experiences, is this a bad idea? Thanks guys 

[Roy]

https://www.propertypartner.co/howitworks#/

 

[Beano]

8 minutes ago, Roy said:

https://www.propertypartner.co/howitworks#/

 

Have you used these? This is exactly what I’m looking for.

[Roy]

Yes, from its start.

I shan't recommend it but I will say I'm sticking with it.

[Tn21]

Is this the same as a REIT?

[SilverTanner]

I have also been using Property Partner and add funds every month - happy so far. I think it is probably the best of the UK options.

[KDave]

I held a small number shares for a couple of years and did OK from the small investment, selling was easy in the secondary market, dividends were nice. I'm permabear on UK property though, only had some for diversification sake, now I am out completely. 

[Roy]

I can't see property investment being a bad move.

People need somewhere to live and with the potential immigrant crisis coming every room will be occupied.

HMOs anyone?

[caloundracats]

Sounds sensible to me. Potential immigrant crisis coming? Thought it was here already.

The powers that be and media keep telling us there is a housing shortage. Green belt is being taken over and housing developments planned. At least where I am, 6000 new houses to be built.

 

[KDave]

Immigration is already a crisis across Europe, the path now is that everyone starts to follow the examples of Eastern Europe and Italy, stopping immigration all together and starting deportations respectively. Not that this will affect housing though. 

The biggest risk to housing is in the capital investment, interest rates going up, house prices will come down. I think rent will be fine with government supporting the floor. If they take away housing benefit then start to worry. 

[bluemoon]

On 02/08/2018 at 20:42, Roy said:

https://www.propertypartner.co/howitworks#/

 

That came at the right time. I too was looking at another property partner investment but it had a minimum £13k investment which is too dear for me. Your one has a minimum £5k which is much more manageable. I'll do some DD on them.

[kimchi]

Very interesting indeed, thank you folks!

Does a portfolio such as this count as a second property - I am guessing not unless you own the/a whole thing outright (in which case you would simply buy direct anyway, surely)?

[SilverTanner]

1 hour ago, kimchi said:

Very interesting indeed, thank you folks!

Does a portfolio such as this count as a second property - I am guessing not unless you own the/a whole thing outright (in which case you would simply buy direct anyway, surely)?

You own shares in the SPV company that owns the property so the 'rent' is paid as monthly dividends. So nothing counts as a second property although the extra costs etc are included in the SPV accounts.

[Michal]

Hmm, what was your yeld on investment ? 

[SilverTanner]

47 minutes ago, Michal said:

Hmm, what was your yeld on investment ? 

Overall yield at the moment is 4.13%.

One property has just been sold which gave a decent % capital gain too.

[Bluenitsuj]

For anyone that is/has used PropertyPartner, is it relatively easy to get your money out in the future?

Although not property, I currently use Vanguard for a S&S Isa and have done so for a couple of years, currently +12.15%.  Very easy to put money in and out. I have funds in the Lifestrategy 60% and 100% funds. Looking to diversify.

[HighlandTiger]

Neve had any problems getting money out of property partner. I  had quite a bit in there at one time, but liquidated most of it for personal (not financial) reasons 

I will be back investing in it next year. 

[MancunianStacker]

I’m very skeptical of these. Idea sounds great but similar to the equity “Woodford” fund, you might not be able to get your cash back out quickly. If there was a housing correction, people will flock to make withdrawals and only the lucky first will make it. Then once these undoubtedly leveraged properties are in negative equity you could be waiting for years to get your money out. Most property funds have a caveat to say you may have to wait e.g 6 months but I’d be surprised if the company hasn’t covered its own ass somewhere in its T&Cs. You’ll get your money back fast in a climbing market (hence good feedback so far) but house prices are high and more likely to go down than up. If lending drys up again / financial crisis 2 hits your funds may get tied up for a long long time. 

I prefer assets you hold so why not buy a small terraced. Just save up a 25% deposit!

[ilovesilverireallydo]

I used https://www.fitzroviafinance.com/ - new to the market - but the history of the owners is solid. Also starting point is £1K https://www.fitzroviafinance.com/pages/asset-backed-property-investments

[HighlandTiger]

1 hour ago, MancunianStacker said:

I’m very skeptical of these. Idea sounds great but similar to the equity “Woodford” fund, you might not be able to get your cash back out quickly. If there was a housing correction, people will flock to make withdrawals and only the lucky first will make it. Then once these undoubtedly leveraged properties are in negative equity you could be waiting for years to get your money out. Most property funds have a caveat to say you may have to wait e.g 6 months but I’d be surprised if the company hasn’t covered its own ass somewhere in its T&Cs. You’ll get your money back fast in a climbing market (hence good feedback so far) but house prices are high and more likely to go down than up. If lending drys up again / financial crisis 2 hits your funds may get tied up for a long long time. 

I prefer assets you hold so why not buy a small terraced. Just save up a 25% deposit!

I suggest you a actually do some reading on the property partner website, your assessment is so far off the mark. 

All houses are bought outright and then rented, therefore there is always money coming in, (providing the rent is paid of course), the properties will never go into negative equity as there is no mortgage. The property may be worth less than you paid for it, but there will always be someone wanting to buy your share. If house prices crash, I'll certainly be picking up shares if people get the jitters, and I won't be the only one.

[MancunianStacker]

This sounds fine. I was just trying to point out what to look out for. I’ve seen lots of dodgy companies come and go, I tend to ignore most offers these days (getting old). 

[SilverTanner]

I am still investing with Property Partner, albeit at a lower level (need funds for coins to complete some sets - now that the lots for the September auctions are coming out I will probably also have to start selling stuff).

PP has a mix of mortgaged (usually max of 50% LTV and for high value properties which they all seem to be now) and mortgage free properties (lower overall value and often properties from the early years), they have also moved into 'loans' as these can go in an ISA but are restricted to high-net-worth individuals [I would like to tick that box someday but it will need a lottery win]. There does seem to always be buyers but they may be at a lower price point than you would like  - no different to the stock market really although the pool of potential buyers is considerably smaller! Personally I view PP as an 'income stream' and would only sell if forced - PP sold one of the properties recently and although the capital gain was nice I would have kept it.

There were a couple of issues, resulting from the terms of the purchase, with some of the student residences recently - my impression was that PP dealt with these issues quickly and efficiently which is more than I can say for some of the other property crowd funding sites.

Not being able to afford a single rental property, even up here in the North, I will stick with PP given the reduced risk that the diversification offers (whole UK, residential, commercial and student) and I have little or nothing to do which is great.

[HighlandTiger]

1 hour ago, SilverTanner said:

I am still investing with Property Partner, albeit at a lower level (need funds for coins to complete some sets - now that the lots for the September auctions are coming out I will probably also have to start selling stuff).

PP has a mix of mortgaged (usually max of 50% LTV and for high value properties which they all seem to be now) and mortgage free properties (lower overall value and often properties from the early years), they have also moved into 'loans' as these can go in an ISA but are restricted to high-net-worth individuals [I would like to tick that box someday but it will need a lottery win]. There does seem to always be buyers but they may be at a lower price point than you would like  - no different to the stock market really although the pool of potential buyers is considerably smaller! Personally I view PP as an 'income stream' and would only sell if forced - PP sold one of the properties recently and although the capital gain was nice I would have kept it.

There were a couple of issues, resulting from the terms of the purchase, with some of the student residences recently - my impression was that PP dealt with these issues quickly and efficiently which is more than I can say for some of the other property crowd funding sites.

Not being able to afford a single rental property, even up here in the North, I will stick with PP given the reduced risk that the diversification offers (whole UK, residential, commercial and student) and I have little or nothing to do which is great.

Glad to hear they are still doing ok. I got stuffed for £100 with saving stream/Lendy, (I was lucky compared to some) which has put me right off crowdfunding loans. So I'm going to stick with my crowdfunded PM's, whisky and property. 

[SilverTanner]

25 minutes ago, HighlandTiger said:

Glad to hear they are still doing ok. I got stuffed for £100 with saving stream/Lendy, (I was lucky compared to some) which has put me right off crowdfunding loans. So I'm going to stick with my crowdfunded PM's, whisky and property. 

Unfortunately we had much more than that in Lendy but hopefully should get most of it back but it will take a while (overall the interest we have already had was more than the capital still left). We had been pulling funds out over the last year - not fast enough though - and they were going to Property Partner!

[Roy]

Me too. I have cash tied up in Lendy and Moneything defaults but I'm semi confident of a good resolution. Like you, I'm quids in with the interest though so not too bad.

It's tough to make a shilling now, never mind a sixpence.

My confidence in P2P is however sadly waning.