Steerpike
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Post by Steerpike on Nov 6, 2017 9:29:27 GMT
Interesting experiment going on here. It seems that the large SM purchase of Liverpool caused a massive change in sentiment and the MT SM is almost empty to the point of FFF. It appears that there are now £10k chunks being drip fed back on to the SM and almost instantly bought. If everyone is selling it must be bad, if everyone is buying it must be good. Untick the sophisticated investor box.
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guff
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Post by guff on Nov 6, 2017 9:33:31 GMT
Interesting experiment going on here. It seems that the large SM purchase of Liverpool caused a massive change in sentiment and the MT SM is almost empty to the point of FFF. It appears that there are now £10k chunks being drip fed back on to the SM and almost instantly bought. If everyone is selling it must be bad, if everyone is buying it must be good. Untick the sophisticated investor box. Welcome to the digital age…
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archie
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Post by archie on Nov 6, 2017 9:48:51 GMT
Interesting experiment going on here. It seems that the large SM purchase of Liverpool caused a massive change in sentiment and the MT SM is almost empty to the point of FFF. It appears that there are now £10k chunks being drip fed back on to the SM and almost instantly bought. If everyone is selling it must be bad, if everyone is buying it must be good. Untick the sophisticated investor box. Maybe it's the same person who can't make up their mind.
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TitoPuente
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Post by TitoPuente on Nov 6, 2017 10:56:38 GMT
Maybe it’s an operator wanting exactly that.
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oik
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Post by oik on Nov 6, 2017 17:52:41 GMT
If everyone is selling it must be bad, if everyone is buying it must be good. My dogs are much the same. They only fight over a stick if the other one wants it. I'm training them to handle all my finances.
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Post by martin44 on Nov 7, 2017 12:43:09 GMT
Probably that martin44 lives in an area where house prices are below the national average (c240k) Well below .... 125k will get a nice semi 3 bed up here .... lousy weather tho 😁
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ptr120
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Post by ptr120 on Nov 7, 2017 12:45:36 GMT
So as of today, 60 units exchanged or reserved. However, on 27 September 77 units were exchanged or reserved. Granted they have converted some reservations in to exchanges, some reservations have also dropped out of their pipeline.
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jlend
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Post by jlend on Nov 7, 2017 13:26:46 GMT
Looking at the newsletter it appears that they are going to try and remodel some of the building and include more 2 beds rather than 1 beds. This seems like a good idea as the 2 beds have sold out by the look of things with the one beds slower to shift. The majority of the blocks are 1 bed.
The current two beds are less than twice the price of the one beds so the developer may end up with less cash but sell the flats a lot quicker.
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sj
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Post by sj on Nov 17, 2017 23:48:55 GMT
Looking at the newsletter it appears that they are going to try and remodel some of the building and include more 2 beds rather than 1 beds. This seems like a good idea as the 2 beds have sold out by the look of things with the one beds slower to shift. The majority of the blocks are 1 bed. The current two beds are less than twice the price of the one beds so the developer may end up with less cash but sell the flats a lot quicker. Evening all - long-time reader, first-time poster. It makes perfect sense for the developer to alter the plans to better match demand of the market, but will this decision not lower the overall GDV of the site and thus increase the LTV? And they'll end up with less income than originally planned once all units are sold, and I wonder if that would affect their ability to repay the loan in any way.
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hazellend
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Post by hazellend on Nov 18, 2017 7:42:53 GMT
GDV was 40 million so seems to be quite a good margin
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sj
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Post by sj on Nov 18, 2017 11:50:00 GMT
You meant 4 million of course - but if GDV drops a bit to say 3.6 million then the LTV is up to 69% already. I've not seen the newsletter so I can't make any assumptions re. new numbers of 2 bed apts vs. 1 bed apts and thus work out roughly what the new GDV might end up being.
To be honest, I think even 62.5% LTV is still a bit worrying for a development project of this nature - it's not worth anywhere near 4 mil until it's completely finished. We've seen a few development projects go wrong on various platforms and the prospects of a reasonable recovery in almost all of those cases looks bleak compared with the more straightforward PBL/car/bling loans. I'm now personally very wary of any development-based loans unless it bears up to lots of close DD scrutiny.
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hazellend
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Post by hazellend on Nov 18, 2017 12:20:45 GMT
You meant 4 million of course - but if GDV drops a bit to say 3.6 million then the LTV is up to 69% already. I've not seen the newsletter so I can't make any assumptions re. new numbers of 2 bed apts vs. 1 bed apts and thus work out roughly what the new GDV might end up being. To be honest, I think even 62.5% LTV is still a bit worrying for a development project of this nature - it's not worth anywhere near 4 mil until it's completely finished. We've seen a few development projects go wrong on various platforms and the prospects of a reasonable recovery in almost all of those cases looks bleak compared with the more straightforward PBL/car/bling loans. I'm now personally very wary of any development-based loans unless it bears up to lots of close DD scrutiny. This is not a DFL. The current valuation was 4 million. The valuation of the completed development is a little under 40 million. The borrower is not looking to moneything for development finance
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hazellend
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Post by hazellend on Nov 18, 2017 12:21:04 GMT
You meant 4 million of course - but if GDV drops a bit to say 3.6 million then the LTV is up to 69% already. I've not seen the newsletter so I can't make any assumptions re. new numbers of 2 bed apts vs. 1 bed apts and thus work out roughly what the new GDV might end up being. To be honest, I think even 62.5% LTV is still a bit worrying for a development project of this nature - it's not worth anywhere near 4 mil until it's completely finished. We've seen a few development projects go wrong on various platforms and the prospects of a reasonable recovery in almost all of those cases looks bleak compared with the more straightforward PBL/car/bling loans. I'm now personally very wary of any development-based loans unless it bears up to lots of close DD scrutiny. This is not a DFL. The current valuation was 4 million. The valuation of the completed development is a little under 40 million. The borrower is not looking to moneything for development finance On Lendy this would be a DFL with current LTGDV of around 7%
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sj
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Post by sj on Nov 18, 2017 14:40:56 GMT
Many apologies - got this mixed up with a different loan, wasn't at the PC and couldn't get on to MT. Disregard my last post
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hazellend
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Post by hazellend on Nov 18, 2017 14:55:58 GMT
Many apologies - got this mixed up with a different loan, wasn't at the PC and couldn't get on to MT. Disregard my last post Ok but I already wasted minutes of my life I’ll never get back !
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