kaya
Member of DD Central
Posts: 1,150 
Likes: 718
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SPV 71
Dec 13, 2016 15:51:42 GMT
Post by kaya on Dec 13, 2016 15:51:42 GMT
I like the overall idea of this moose business, but looking at the figures for the latest offering, I just can't see how it is worth the risk. The overall margins seem too tight after renovation and other costs, and the property could easily make no capital gain at all if the projections turn out to be a bit optimistic. Housing markets could easily fall in the next few years. Add to that the uncertainty concerning rental income, and the possibility of other unexpected costs (of which there are many, potentially), and, well...
I'd like to be tempted, but am unconvinced. Are you convinced that this is a good investment?
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
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SPV 71
Dec 13, 2016 16:15:37 GMT
Post by Neil_P2PBlog on Dec 13, 2016 16:15:37 GMT
For me the fees/financing costs seem to wipe out the merits of this one.
The gross annual yield would be great if you were a direct BTL owner: £7,290 annual rent on £53,350 (property price+renovation+stamp duty) = 13.7%. But after fees at 7.35% yield and little upside on capital growth I think there are much better alternatives on PM.
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ben
Posts: 2,020
Likes: 589
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SPV 71
Dec 13, 2016 16:54:35 GMT
Post by ben on Dec 13, 2016 16:54:35 GMT
Agree the figures do not add up to well on this one either.
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SPV 71
Dec 13, 2016 17:22:55 GMT
Post by sayyestocress on Dec 13, 2016 17:22:55 GMT
Compared to recent offerings the rental yield looks strong by comparison to me, which is what I look for on PM's BTLs. Granted the projected growth seems relatively low compared to recent properties but it is actually outside County Durham unlike the last million offerings which is good from a geographical diversification standpoint. I took a nibble.
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SPV 71
Dec 13, 2016 17:40:16 GMT
Post by buttchopf23 on Dec 13, 2016 17:40:16 GMT
Well, I took a small stake. I am always dreaming that my investments which generate stable cash flows will not be sold at the end of the term...
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