Property Partner Review & How My Monthly Income Rose By Over 12,000% In A Year!

property partner

A review of Property Partner is long overdue for this blog. It’s finally here and the whole world is overjoyed, I’m sure.

Property Partner is a UK-based property crowdfunding platform which specialises in residential property. Backing the business is Index Ventures, Seedcamp & Octopus Investments

The idea is to allow investors to gain from the buy-to-let market with less hassle and less risk than buying directly.

The minimum investment is outrageously lower than buying a property outright using a mortgage, yet investors still benefit from the effects of leverage as most of the properties are geared.

The platform has recently branched into PBSA (purpose-built student accommodation) & commercial property for further diversification.

How does Property Partner work?

Listings are divided into shares and the monthly rental payments are actually dividends. This is because each listing is set up as an SPV (Special Purpose Vehicle); a standalone limited company which owns the property.

Subsequently, They describe their platform as “the world’s first stock exchange for residential property”. This hints heavily to the resale market where investors can buy and sell their shares, but more on that later.

There is a 2% fee for any purchase but no fees to sell. Rental income is paid monthly and accrues from the time that you make the purchase.

New listings appear on most Wednesdays & you can buy property at any time on the resale market.

New listings are the main attraction of the website. An example is below

property partner

Since summer 2017, any listing that yields less than 5%, automatically gets a top-up bonus to the 5% mark for the first 2 years. After the 2 years, the rental income reverts to the original calculation of gross rent minus costs & service fee (2.51% per year in this case).

In the past, there have been other promotions such as double dividends for the first year which help to boost income.

In the resale market, you buy directly from other investors at a market price. Also, instead of buying immediately, you can place a bid at your own price and wait for a willing seller to be matched with you.

In terms of exit strategy, It’s strange how Property Partner works.

Resale market aside, investors also have an option to sell at market value after 5 years. For those that want to sell, Property Partner will make a new listing on the website selling the unwanted shares as a single block. If this is unsuccessful then they will sell the entire property externally.

It’s a shame that selling is considered after just 5 years in my opinion as I see property as a longer-term asset. Especially considering the cash flow it creates. Why anyone would want to sell after 5 years is beyond me. Aren’t properties meant to double in value every 10 years?

My experience so far

I entered the Property Partner ride back in February of 2016 with a £200 investment. My confidence in the platform was low but my desire to create a passive income stream was high.

Month by month I added to my portfolio of properties and watched the rental income grow. See for yourself:

Year

Month

Income

2016

Apr

£0.03

May

£0.12

Jun

£2.09

Jul

£1.73

Aug

£1.84

Sep

£1.87

Oct

£1.87

Nov

£1.87

Dec

£1.87

2016 Total

£13.29

2017

Jan

£2.25

Feb

£3.03

Mar

£3.57

Apr

£3.76

May

£3.59

Jun

£3.70

Jul

£8.84

Aug

£5.27

Sep

£5.59

Oct

£6.02

Nov

£6.78

Dec

£6.90

2017 Total

£59.30

2018

Jan

£7.13

2018 Total

£7.13

Grand Total

£79.72


By just contributing what I could afford, my monthly income rose by 12,433% in a year. It was 
3p in April 2016 and £3.76 in April 2017. Isn’t the income growth beautiful? Every month I benefit from compounding returns, unlike stock market dividend where the payout is every quarter, at most.

The rising income is impressive but it is important to put it into context. So far, I’ve spent £2403.44 on the platform. April 2017 to January 2018 is 21 months. That’s an average spend of £114.45 a month! easily manageable.

These days, I take advantage of the Auto-invest feature since the minimum deposit went from £50 to £250. Without warning might I add! Auto-invest allows me to continue to invest from £50 a month & allocates the funds against all new listings on the platform.

Auto-invest has 2 additional benefits. Firstly, far less chance of getting scaled back for an oversubscribed listing. Secondly, there is 5% interest on funds waiting to be used in the Auto-invest account!

My goal for 2018 is to reach the £10 a month mark which will be a great symbolic landmark. Of course, all of this will be reinvested into more purchases on the platform.

Performance

Let’s look at overall performance, keeping in mind a contribution of £2403.44

Property Partner

To begin with, the £161.38 only considers dividends, valuation gains and auto-invest interest. Interestingly, the combined value of promotions and discount on purchases in the resale market outweigh the 2% transaction cost for all purchases.

When I first joined the platform, expected returns were advertised at 13% pa. Since then, I’ve watched it dwindle to 7.2%! at least they’re honest.

I’m sure the returns would be higher if it was not for the Brexit referendum result. Soon after the referendum, the valuation slumped but has been on a slow, upward trend ever since.

The resale market has a lot to offer. Remember, market means market. There are some extremely juicy bargains waiting to be scooped up. Take a peak

property partner

As you can see, there are some properties trading at a massive 20% discount! Valuations take place every quarter by a RICS qualified Chartered Surveyor. I know of no other way to buy UK property at such large discounts – do you?

Why Property Partner is a winner

  • Effective way to gain exposure to geared UK property
  • Easy to diversify into multiple properties across the country
  • Resale market offers liquidity and opportunity to buy at a discount
  • Reasonable fee and no annual charge
  • Monthly income stream
  • Newer listings have strong yields
  • Auto-invest option offers 5% interest and low monthly commitment

What I dislike about Property Partner

  • Gearing enhances loses if house prices go down
  • Uncertainty over exit after 5% years
  • Property market has high tax burden
  • Relatively low yields from older listings
  • No shield from macroeconomic risk
  • Minimum spend (when not using auto-invest) increased from £50 to £250

So there’s my take on the Property Partner platform. Overall I think it is a great way to invest in property and I will continue to grow my position this year. However, like with any other investment, there is considerable risk to consider.

For more information, visit the FAQ section on the Property Partner website. This post has purposefully avoided tax issues as everyone has a different tax situation. Please check site disclaimer information.

 

Chris Record – HODL GANG

So, I took a 2-week break from Money Music Monday.

The 2 Mondays that I missed were Christmas day and New years day. I’m sure that I’m forgiven? Thanks.

The first entry of 2018… HODL GANG!

Yes, more bitcoin. More crypto.

I wrote about my experiences with bitcoin so far here. Worth checking out if you have no experience with crypto-currencies.

Hats off to Chris Record as he nails many crypto issues in the song whilst rapping really well.

Check it out below. Enjoy!

Side Hustle Summary – December 17

side hustle summary

The festive season was awfully hectic and I’m sure I set new records for the amount of food and drink I got through.

However, I still managed to hustle on the side to bring in extra income so I can make extra investments.

Let’s see if all those mince pies slowed the side hustle down.

Side Hustle Summary for December 17

December

Amount

Casual catering job

£1,037.03

Job Spotter App*

£2.47

Google rewards**

£2.11

Cashback (Quidco & Halifax reward card)

£15.72

Sales***

£10.00

Task360

£0.00

Total

£1067.33

(*Paid in Amazon vouchers, **paid in Google Play store credit, ***Profit of sale only)

Grand total = £1,067.33

Yay – I broke the 1k mark!

It’s a warm feeling to reach this milestone in just a few months of starting these summaries. It feels even better that it was achieved in December, the month that’s meant to be for extra spending, not extra earning!

lets delve a little deeper to see how this was done:

Work, work, work

My part-time job as a catering manager at sporting event venues brang in most of the income in December. The casual nature of the contract means that I can work when I chose to work. If I don’t wish to work… then you already know what will happen.

It can swing both ways, If management decide that they don’t need me then they don’t have to offer me work. But I have built my reputation in this sector for over 10 years now so I am often called upon.

Another benefit of working on a casual contract is that I get holiday pay, instead of annual leave. Some of this holiday pay was cashed in for December which helped to boost my total for December.

My 1st sale!

Another milestone; I sold my Nintendo Classic Mini Super NES.

To be honest, I shouldn’t be bragging. As you can see I made  only £10 profit (bought for £70 and sold for £80).

As I found out extra stock was coming for Mini SNES’, I went for the quick sell to a friend.

Hopefully this is just the start of a long, prosperous side hustle.

side hustle

Elsewhere, I struggled to get anything from Task360 and I got waaay less than I normally get for the Job Spotter app. I’ll blame the cold weather and busy schedule for now.

Decembers result has me overly excited for the side hustle in 2018. I’m sure most months won’t be this successful but it’s definitely something to aim towards.

Please let me know of any easy side hustles I should be doing this year. All suggestions welcome!

Let me know how your side hustles went in 2017 either in the comment section below or on Twitter (@RichestManInLDN).

Until next time, happy hustling!

Looking Back At Dividends In 2017

dividends

2017 was the first year where I received at least 1 dividend payment in every month. Thrilling.

The dividends I receive have 1 purpose: to help buy more stock (most of which will be dividend payers).

I have the deepest love of receiving dividend payments. I can’t put it any better than Money Grower:

“Unlike my job where I am paid by the hour, the dividends I receive are not linked to my time or effort. By having an ownership stake in the biggest companies in the world, I am reaping the rewards of other peoples hard work. Other peoples time and effort is making me money.” Amen.

My goal is to make £300 from dividends in 2018. I already have 4 new dividend payers (National Grid, Daily Mail General Trust, SSE, GlaxoKlineSmith) in my portfolio which I didn’t have in 2017 and I also plan to buy shares in a few more dividend payers.

On top of that, most of my 2017 dividend payers are increasing their payouts this year. I’m more than ready for dividend growth in 2018.

My full breakdown of dividends in 2017 is below (Sorry about the stock codes, blame my online broker as I copied the data from them!)

Dividends in 2017

Pay date

Stock

Ex-date

Shares

Dividend

13-Jan-17

WALT DISNEY CO. COM DISNEY USD0.01

08-Dec-16

5

£2.24

06-Feb-17

BT GROUP ORD GBP0.05

29-Dec-16

213

£10.33

17-Feb-17

APPLE INC COM NPV

09-Feb-17

6

£1.92

17-Mar-17

EASYJET ORD GBP0.27285714

23-Feb-17

64

£34.43

31-Mar-17

BP ORD USD0.25

16-Feb-17

205

£16.73

06-Apr-17

DIAGEO ORD GBP0.28 101/108

23-Feb-17

21

£4.98

02-May-17

RIT CAP PARTNERS ORD GBP1

06-Apr-17

8

£1.28

16-May-17

LLOYDS BANKING GP ORD GBP0.1

06-Apr-17

1472

£32.38

24-May-17

APPLE INC COM NPV

11-May-17

6

£2.03

07-Jun-17

UNILEVER PLC ORD GBP0.031111

04-May-17

6

£1.81

23-Jun-17

BP ORD USD0.25

11-May-17

205

£15.90

29-Jun-17

MORRISON W SUPRMKT ORD GBP0.10

25-May-17

218

£8.39

28-Jul-17

WALT DISNEY CO. COM DISNEY USD0.01

06-Jul-17

5

£2.09

22-Aug-17

APPLE INC COM NPV

10-Aug-17

6

£2.05

04-Sep-17

BT GROUP ORD GBP0.05

10-Aug-17

310

£32.71

06-Sep-17

UNILEVER PLC ORD GBP0.031111

03-Aug-17

6

£1.91

21-Sep-17

LEGALANDGENERAL GP ORD GBP0.025

17-Aug-17

47

£2.02

22-Sep-17

BP ORD USD0.25

10-Aug-17

205

£15.62

27-Sep-17

LLOYDS BANKING GP ORD GBP0.1

10-Aug-17

1472

£14.72

05-Oct-17

DIAGEO ORD GBP0.28 101/108

10-Aug-17

21

£8.09

31-Oct-17

RIT CAP PARTNERS ORD GBP1

05-Oct-17

18

£2.88

06-Nov-17

MORRISON(W)SUPRMKT ORD GBP0.10

28-Sep-17

218

£3.62

07-Nov-17

APPLE INC COM NPV

10-Nov-17

6

£2.43

13-Dec-17

UNILEVER PLC ORD GBP0.031111

02-Nov-17

6

£1.92

21-Dec-17

BP ORD USD0.25

09-Nov-17

205

£15.26

Total

£237.74

How was 2017 for you in terms of dividends? How much growth are you expecting in 2018?

Let me know in the comments below!

Wealth Building & Income Update – December 2017

passive income

It’s 2018!

What better way to start the year than to recap passive income and portfolio growth for December?

There is no better way, this is the only way. Let’s go!

Passive income for December

Source

Amount

Dividend

£17.18

Bank

£162.86

Property Partner

£6.90

Rate Setter

£1.56

Wise Alpha

£1.99

Grand Total

£190.49 (£30.63)

Dividends streamed in from Unilever (£1.92) and BP (£15.26).

Disclaimer time: the income from the bank category includes £159.86 of interest (the remaining £3 is the monthly reward account bonus). This £159.86 is not used for further investment and is not included in my portfolio below.

However, it is still passive income which was earned and I treat it the same way I treat the other passive income sources – it goes back to work to yield more income.

I’m gleeful with the £6.90 from Property Partner, I recently wrote about my goal to reach the £10 a month mark on this investment.

Wise Alpha came through with another interest payment in December. I like that.

Portfolio Tracker

Month

Stock

P2P Lending**

Property Partner

ECF*

Crypto

Wise Alpha

Total

MoM increase

Asset purchases

Saved in month

July

£9,895.62

£354.31

£1,790.72

£423.26

£372.93

£301.48

£13,138.32

n/a

£320.00

Aug

£9,705.19

£355.38

£2,056.24

£468.85

£646.42

£303.26

£13,535.34

3.0%

£469.79

£325.00

Sept

£9,824.55

£366.27

£2,234.89

£535.92

£670.45

£405.30

£14,037.38

3.7%

£480.66

£320.00

Oct

£10,205.37

£402.50

£2,295.37

£556.47

£867.43

£407.76

£14,734.90

4.9%

£111.75

£320.00

Nov

£10,587.99

£453.54

£2,301.46

£567.67

£1,328.68

£409.87

£15,649.21

5.9%

£620.00

£585.00

Dec

£10,880.69

£455.56

£2,500.04

£569.00

£3,335.36

£512.52

£18,253.17

16.4%

£1,085.64

£570.00

Total

£2,767.84

£2,440.00

*Seedrs & Crowdcube
**Rate Setter & Assetz Capital

By my standards, an amazing month of growth! 16.4% growth is the Christmas present I didn’t expect.

Again, crypto powered the portfolio forward. I spent a lot diversifying into coins not called bitcoin and luckily nearly all of them went up.

For more on bitcoin, check out this thoughtful piece.

Meanwhile, on Wise Alpha, I bought £100 of this bond to beef up my fixed income. The current yield is 9.5% and the estimated yield to maturity is 8.7% (this income will not be for vegans).

All in all, I’m grateful for all the income and growth I’ve experienced in 2017. Most of all, I’m grateful to you – for reading my blog.

Heres hoping for maximum prosperity and happiness to you in 2018!

Recapping Financial Goals & Goals for 2018

financial goals

This amazing blog started in June. But It wasn’t until August that my financial goals were outlined for all to see.

4 months on, it’s an opportune time to look back on how I’ve performed so far and look forward with updated goals for 2018.

Shorter-term

a) Retrieve 1.4k owed to me

Plan: i) stay in contact with the debtor to ensure January payment. ii) set up automated payment from current account to savings account (with an interest rate better than 0.25%!). 

Result: Success! all money has been paid back.

b) Pay off short-term debt asap

Plan: pay off all debt by the end of September.

Result: Success! all debt has been paid off.

c) Open a low-cost fund (or 2) on Vanguard

Plan: research the best funds available and save towards a February start.

Result: Still a work in progress. I could have started this by now but I want to do it in the most tax efficient/low fee way possible.

d) Live within means every month

Plan: i) monitor monthly investment spend. ii) build up a reserve in recently ordered Monzo account. iii) research budgeting & frugality techniques across personal network and analyse spending habits.

Result: Mostly a success, I was overdrawn once but it was due to complications whilst abroad instead of misspending. I’ve grown cash reserves but keep them in a quick access savings account instead of on Monzo. I’ve started to track my savings and investments each month which has helped & I continue to look at different budgeting techniques.

e) Beat last year’s dividend total of £210.84.

Plan: not much I can do now so late in the year. Since January, I have entered or increased positions in 5 dividend companies. Need to start thinking about stock to buy to increase next year’s total.

Result: Success! in 2017 I made £237.74 in dividends which is a 12.75% increase from 2016.

f) Keep up the good work because…

…there’s so much more to do!

Plan: continue to invest monthly and save at least £300 a month. Continue to reinvest all incomes from investing to accelerate returns. Continue to source new revenue streams (Assetz Capital… You’re Next!). Continue to build a platform and develop skills by blogging. Continue to be on offence with side hustles.

Result: Success on all fronts!!!

Longer term

g) Buy a property

Plan: i) carry on saving into Help to Buy ISA. ii) increase knowledge of market by researching and networking. iii) shortlist potential candidates who may be interested in buying together.

Result: Success/work in progress. I have been diligently saving into my Help to Buy ISA, increased knowledge and spoke about buying with friends and family.

h) FIRE!

Financial Independence, Retire Early.

Plan: a, b, c, d, e, f, g and so much more!

Result: Success/work in progress.

Looking ahead to 2018

financial goals

I couldn’t be more excited about the opportunities that lay ahead in 2018 & I cannot wait to blog my progress through the year.

To get the year off to the right start, I’ll need new goals. I liked the old ones but most of them have been achieved or didn’t have a time frame.

Below are my new goals for 2018:

1) Find a way into tax efficient, low fee index funds

The key here is finding a way to invest that is tax efficient with low fees. I already have an ISA so research will be majorly important to decide the next steps.

2) Get to £10 a month income on Property Partner

In January 2017, I received £2.25 from Property Partner. For December 2017, it’s set to be £6.90.

This is easy money to boost passive income. I just have to keep buying.

3) Reach £300 mark in dividend income

This will be tough but achievable if I continue to buy strong dividend stocks.

4) Diversify into crash-resistant assets

It’s fair to say that we are overdue for a major stock market crash.

Although I’m heavily weighted in stocks, much of the rest of the portfolio is made up of crypto or fin-tech investment (crowdfunding or p2p lending) platforms. The problem is that I have no idea how crypto or fin-tech investment platforms will do in a crash.

Therefore, I will look into counter-cyclical assets and recession-proof stocks.

5) Make £100 profit from sales & flips

As I’m so terrible at selling, I want to make a big effort in 2018 to flip and sell my way to £100 profit.

6) Save at least 3k towards buying 1st property

This relates to a longer-term goal, it’s worth taking smaller steps towards buying a property and it will be easier to measure success.

7) Grow portfolio by 30%

This relates to achieving FIRE (Financial independence, retire early). To get to that stage I will have to grow my portfolio consistently. Buying assets, reinvesting income & value gains will all get me to where I need to be in the long run.

Those are my goals for 2018. I’m confident and enthusiastic for the year ahead.

Be sure to let me know your financial goals for 2018 in the comments section below (or else).

Happy new year & many happy (financial) returns!

Side Hustle Summary – November 17

side hustle summary

Here we are again! another Side Hustle Summary.

As far as I’m concerned, the more I hustle, the more I can invest & build my portfolio!

In October, being away for 2 weeks affected the side hustle. Let’s see how November went without any downtime.

Side Hustle Summary for November 17

November

Amount

Casual catering job

£935.08

Job Spotter App*

£17.89

Google rewards**

£0.76

Cashback (Quidco)

£5.72

Task360

£6.00

Total

£965.45

(*Paid in Amazon vouchers, **Paid in Google Play store credit)

Grand total = £965.45

So, all in all, a very pleasing month. Nearly doubling October’s effort! I hope to make it past the 1k mark sometime soon.

Made money with Task360 again by doing a vape shop audit – such easy money. I recommend that everyone tries this app.

This is probably the last post before the 25th so I’d like to wish everyone a fantastic Christmas and festive season. Please go easy on the holiday hustle!

side hustle

Until next time, happy hustling!