|
|
Post by valueinvestor123 on Apr 18, 2016 14:34:32 GMT
Is there any indication as to the (realistic) net return achievable with this kind of investment? (after costs).
The projected returns look good but has enough time passed to be able to assess the the likely average is with this platform?
I have some investments but before I put in serious money, I'd like to understand the costs better and what investors were able to achieve.
Places like RBS and FC initial returns are between 14-19% but the net return after defaults is likely to be in the mid single digits. What about Property Moose? (for a diversified portfolio).
thanks, vi123
|
|
ben
Posts: 2,020 
Likes: 589
|
Post by ben on Apr 18, 2016 15:07:42 GMT
I have no idea what the total end will be none of these. have finished, personally I be happy with about 6-7% on average which is probably about what would get on a rental property but without the hassle. I would not expect to get the 13% like quoted on some of them, at some point properties will go down you might for the first year or two but that is not sustainable
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
|
Post by littleoldlady on Apr 21, 2016 10:40:25 GMT
Nobody can answer your question unfortunately (nor the next lot of lottery numbers.) IMO it is best to regard PM as a way of investing in BTL without the need for substantial funds, and without the hassle. The returns actually achieved should be in line with what you could have got with your own diversified BTL portfolio if you had the funds and the time, but a little lower to cover PM's costs and profit. A lot depends on PM's competence as landlords managing void periods, maintenance, defaulting tenants, deposit retention etc (all the problems you would have yourself with your own properties). It is too early to judge.
|
|
paulgul
Member of DD Central
Posts: 401
Likes: 92
|
Post by paulgul on Apr 30, 2016 8:19:42 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Apr 30, 2016 8:55:20 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017 I agree although it is the same risk as if you had your own buy to let, long unrented periods, the underwritten rent ones should be better I have recently sold a property so will be investing in PP/PM and the like as I can not really be bothered with the hassle of a property rather take less and get someone else to do it, also this way I can sort it all out on laptop whilst watching  on tv with wife so double bonus for me
|
|
Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
|
Post by Steerpike on Apr 30, 2016 19:46:41 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017 Not quite "no return" as they pay 3% from the day you invest
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Apr 30, 2016 20:30:53 GMT
every little helps as tesco says , so you should get a little bit back from that
|
|
adrianc
Member of DD Central
Posts: 9,978
Likes: 5,131
|
Post by adrianc on May 1, 2016 7:58:39 GMT
Is there any indication as to the (realistic) net return achievable with this kind of investment? (after costs). So far, my XIRR is 5.4%, having invested irregularly in projects from last July onwards. All the projects are still ongoing, so that's purely primary return - rent. A third of the projects I"m in haven't paid a penny yet (invested since March this year). With that, and because of the top-loading of costs and the initial voids, I expect that figure to rise fairly solidly. FWIW, that's way ahead already of "real world" BtL, as well as being MUCH lower hassle... That's a bit cherry-picky, to be honest. I can't speak for RBS (I presume you mean ReBS rather than our tartan-skirted mainstream friends?), but FC's "initial returns" are only going to be anywhere NEAR those figures if you're dipping your toe in the E-band end of the pool. I can well believe that the net return there is going to be mid-single-digits, but my own experiences in the A+-B end are showing an XIRR of 9.3% against a headline return (GY, on their summary page) of 10.1%. That's not achievable these days, since they went fixed-rate, IMHO. The big advantage of PM over FC is security. The investment is secured against bricks and mortar. You also have the secondary return of capital growth, which is completely and utterly unpredictable, and should be regarded as a bonus and no more, IMHO.
|
|
pom
Member of DD Central
Posts: 1,922 
Likes: 1,244
|
Post by pom on May 1, 2016 8:18:50 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017 Not quite "no return" as they pay 3% from the day you investOnly until the sale completes. Anyway like others have said it's still easier that DIY BTL....and it will be interesting to see later this year when the first ones "mature" how long some of these investment terms actually turn out to be (ie how well/quickly they sell)
|
|
Monetus
Member of DD Central
Posts: 1,179
Likes: 2,961
|
Post by Monetus on May 1, 2016 8:26:31 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017 Consider yourself lucky! I have money tied up in SPV 26 which was purchased at the same time (September 2015) and still hasn't been tenanted as yet.
|
|
adrianc
Member of DD Central
Posts: 9,978
Likes: 5,131
|
Post by adrianc on May 1, 2016 8:44:57 GMT
Talking of returns, the biggest problem for me is the time between investing and getting the first rent, in the case of SPV27 my investment was mid September 2015 and the first rent received at the end of Feb 2016 - so 4 months with no return, thats a large slice of a 2 year investment assuming the sale is made as planned Sept 2017 Consider yourself lucky! I have money tied up in SPV 26 which was purchased at the same time (September 2015) and still hasn't been tenanted as yet. 26 and 22 are two halves of the same building. 22 is at least tenanted, but it's not exactly being great. Two out of three rooms occupied since December, but one of them's already got themselves into arrears - albeit cleared this month. 1.4% of the investment returned in rent to date, but that's over six months. 2.45% annualised. 33, in comparison, is currently at a snidge over 10% annualised return.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 1, 2016 10:20:38 GMT
I've stopped putting any more money in over the last few weeks as I've lost a bit of faith. I fully get & am wholly realistic about the fact that you cannot expect 100% hassle-free occupancy (I know the realities of lettings having dealt with it directly when looking after an ill close friend's property for 2-3 years up till recently) but, I did expect a bit more (esp when it comes to HMO management) from PM in terms of tenant sourcing & better returns. I know some on here frown upon rent guarantee schemes but, that would be a good hedge against voids (certainly for HMOs) albeit for lower but, steady & constant, returns.
If things pick up again & I feel the strategy going forward is improves, I'll happily dip in again as I totally like the concept of property crowd purchasing & as intimated by many cuts a lot of hassle & risk looking after 1-2 properties as a direct landlord.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 1, 2016 12:33:00 GMT
My average return is 5.4% on money invested (not including 1 that has just funded and 2 just aquired). So overall I am quite happy, but yes the MHO have not been as good as expected I invested in a few of the underwritten rental ones (quite happily) so expect that to go up next month as they have just been aquired. Although have not invested in either of the ones currently trying to get funded
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on May 1, 2016 17:14:43 GMT
I'm disappointed with the returns from property moose. There are properties on property partner that yield as much as my crappy HMOs and they are desirable properties.
Really don't understand how one of the Manchester HMOs can remain completely untenanted for so long, particulary since it looks like a nice property. Hopefuly, my yield will improve when this property is finally rented.
I will be avoiding HMOs like the plague from now on. The typical tenant seems completely unreliable and they are constantly defaulting.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 1, 2016 17:39:27 GMT
I think I will be aiming for the underwritten rental ones as well in future, HMO seem to be a bit hit and miss averaging about 3% on those at the moment
|
|
on tv with wife so double bonus for me 
