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Post by smrutib on Feb 3, 2016 16:38:52 GMT
Hi, this is my understanding regarding fees on PM and PP Primary market PM - 5%, reduced by 3% pa till actual purchase PP - 2%
Buying secondary market PM - ? PP - 2.5%
Selling secondary market PM - 2.5% PP - 0
Fee on disposal PM - 15% of gains PP - 0
So, how is PP able to charge so much less than PM, when they are in the same business? What am I missing here?
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ben
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Post by ben on Feb 3, 2016 16:43:58 GMT
PP charges you 2% of whatever you personally invest where PM is on the property
Both charge a management fee on the properties ongoing costs, which comes out the rent
PM does not have a secondary market at this time, so if you are not looking to hold for the full time that could be a problem
I doubt the actually charges will be different but PP charges are more upfront, if you buy something on the secondary market for example with a yield of 2% for rent then just buying it means you will make nothing in rent in that year
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