Property Partner

takesyourchances

dunstonh wrote: »

The issue with all bricks & mortar investments is liquidity. They all have the right to enter periods of suspension where you may not get access to your money for up to 6 months if there are insufficient funds to meet redemptions and a property needs to be sold (often at quick sale prices which can impact on all investors).

This is why you see bricks and mortar property funds typically have sector weightings of no more than 10% of your overall portfolio. You do seem some daft investors go nearly 100% into these things though.

Thanks Dunstonh, good points made and on the liquidity the overall weighing being a lower part of an overall portfolio.

It's not something I'll go heavy in overall either and your right some daft investors are nearly 100% in property including some of my friends who are nearly everything invested in BTL and when i mentioned pensions or stocks and shares ISA they don't have a clue, interest or say I wouldn't go near the stock market, I find it quite shocking really as otherwise they seem quite switched on

takesyourchances

Has anyone on property partner invested in the latest student development in Lincoln? I bought £250 worth in the pre-order as part of building up a spread in blocks of £250 for now.

The PBSA properties are providing decent yields. So far testing the waters mainly with property partner and I do like the set up for equity property buys for a smaller section of my overall portfolio. I have just £1250 invested overall, I might add a £250 next holding of the 19 units in Newcastle bring it to £1500.

A little off topic, but on some financial blogs I was reading based in the States property crowdfunding was quite big parts of their portfolios, although the sites providing property crowd funding are much higher min buys. Interesting nevertheless I thought.

MysteryMan00

A problem I have with them is tax efficiency.

The property companies are paying 19% corporation tax and then you have an income tax hit on receipt - which is a decent bit especially now the tax rate for dividends has gone up.

Much better with a REIT, especially if you hold in an ISA or SIPP (which you can't with pty partner) as there is no underlying tax in the vehicle (the REIT), just tax when they pay out - which is £nil when it is received by an ISA or SIPP.

The tax difference will make a huge difference to your investment pot over time. A huge one.

takesyourchances

MysteryMan00 wrote: »

A problem I have with them is tax efficiency.

The property companies are paying 19% corporation tax and then you have an income tax hit on receipt - which is a decent bit especially now the tax rate for dividends has gone up.

Much better with a REIT, especially if you hold in an ISA or SIPP (which you can't with pty partner) as there is no underlying tax in the vehicle (the REIT), just tax when they pay out - which is £nil when it is received by an ISA or SIPP.

The tax difference will make a huge difference to your investment pot over time. A huge one.

I understand regarding the corporation tax of running the business of property partner coming off returns. The dividends recieved would be tax free to £2000 if that is what you mean, after that taxed?

I don't think I would be investing that heavy in PP to reach that and would be within the £2000. My other dividend paying investments (IT's etc) are in my ISA.

I have been looking at Standard Life Investment Property Income IT as well for my income portfolio within my S&S ISA some point.

Some of the yields on the US sites for crowdfunding was around 12% on those blogs.

I was looking at PP as a small hands off BTL stream and hold to term for the 5 years and some dividends on the way and the student properties yields mixed in a little higher.

But fair points made as well. I would like to add a REIT this year and the Standard Life IT has a decent yield at 5.35% and possible growth prospects.

masonic

Gareth03 wrote: »

The one thing that I like about Crowdfunding property investment companies is that you can invest in property using your ISA allowance. Now instead of paying the government tax on property that you buy, now you can take advantage of tax-free returns up to £20,000 a year.

There's nothing new there. You can invest in a whole host of REITs or other bricks and mortar property funds through a S&S ISA without getting into non-mainstream investments.

monaymadlol

I've heard mixed reviews on this. What have yields been so far? And in what time frame? Sub 10% would be poor?



How much research are you doing into property types, area etc?



Shame you can't invest via Ss isa or is there away around this