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  • Property Moose – anyone invest in it?
  • chunkymonkey
    Free Member

    As the title says, anyone either invest in it or have reasons not to? Can’t put any more money into my ISA so thought I’d try something a bit different 😆

    mikewsmith
    Free Member

    The headline figures on the front page of
    5 million invested
    125k returned
    Is a return of about 2.5%

    The property is sold after a 2 or 3 year term, and you will receive your share of any capital growth. You can withdraw or re-invest. You’re in control.

    How much is then lost in fee’s etc?

    Seems like a good way to start a fund 😉
    Who is on the hook if the property values fall?
    Who funds when the costs exceed the profit/investment?

    Are there any other costs?

    We do all that we can to mitigate other costs because of the Profit Share. However, as with any buy-to-let investment, there may be unforeseen costs due to maintenance of the property, or the operation of the holding company.

    There is a standard 10% (+VAT) management charge deducted from the monthly rental income which is used to pay local expert agents who manage the properties.

    All of our projected figures are shown net of known costs and expenses. You can see all of these within the finance section of each investment opportunity.

    chunkymonkey
    Free Member

    Aye, just reading more into it now – there seem to be quite a lot of fees here and there!!!

    nickjb
    Free Member

    Even with the fees the returns seem ok although the fund manager is the one making good money. I think I’d rather own something outright if looking at BTL but this seems an easy way to dip your toe into that sector with a small amount of money. You do instantly become evil though. Have you looked at funding circle and the like?

    jambalaya
    Free Member

    You need to know what the total fees are in percentage terms. Managing physical property is time consuming and not cheap, for btl for example if you use an agent to manage (although a dedicated comoany should do it in house) then they will take roughly 15% of monthly rent. Estate agents fees on selling 2% plus the managing agent again ?

    It may still be worthwhile of course. In the UK we have limited building land and a growing population, imo its hard to see property values falling over a 5 or 10 year period

    mikewsmith
    Free Member

    In the UK we have limited building land and a growing population, imo its hard to see property values falling over a 5 or 10 year period

    Except how they plan to sell the property after 2-3 years which is probably the point of lowest return on things like fee’s and stamp duty

Viewing 6 posts - 1 through 6 (of 6 total)

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