The Potential for Liquidity with our Secondary Market

Traditional property investment might be highly illiquid. In order to exit your investment, it’s likely you’ll have to sell the entire property asset. As a result, there’s a decreased level of flexibility, and you might not be able to liquidize your capital.

Since we opened our doors in 2013, we wanted to provide the possibility of liquidity to our investors, which is quite an unusual thing to come by in the world of property investment.

Secondary market

In September 2016, we launched our Secondary Market. This is an online trading platform, exclusive to Property Moose members, which allows you to buy and sell shares in real time.

Through the Secondary Market, you can opt in and out of our investment opportunities by buying and selling your shares at any point during the investment term, provided there is a willing buyer.

With this newfound flexibility, your investment position can be decreased in its commitment duration if a willing buyer is there to take your place. You will have the ability to attempt to sell shares at a premium, potentially benefitting from market leading returns before the investment term has lapsed.

In addition, if you wish to exit your investments quickly, you have the opportunity to try and incentivise buyers by selling your shares at a discount. This could be perfect if you need to release your equity before the end of the fixed term.

As a buyer, you also have the opportunity to enter an investment term that has already been fully-funded, should you find any shares available for sale.

The logistics of our secondary market are extremely simple, thanks to our back-end technology, which smoothly processes all transactions and instantly updates your e-wallet balance. Please note that Property Moose charges a 2% fee on all buying transactions.

Secondary market valuations

It is important to always assess each opportunity before investing on the secondary market.

Buy-to-let

When assessing BTL investments, the premium or discount displayed relates to the total price paid per share and the current projected value for the shares. This is calculated by looking at the most recent market valuation for the property (undertaken independently every 6-months), deducting any sales costs (including agency fee, PM profit fee and corporation tax) then dividing that by the number of shares in issue.

Historical rental yield takes the historical annualised rental return achieved by the property and shows you what the historical rental yield would have been for the share price you have selected.

Likewise, the projected rental yield shows you the projected rental yield based on your share value, assuming no unknown costs or expenses incurred by the property.

Please bear in mind that any rental payments will be made to the owner of the shares on rent payment day. If you sell your shares during the month, the rent will be paid to the buyer.

Buy-to-sell and private equity

Both our buy-to-sell and private equity investments offer an opportunity for capital growth through either buying properties at a discount to sell (with buy-to-sell) or more complex development or other real estate strategies (with private equity).

When assessing secondary market acquisitions, we assist by providing the projected returns based on the share value you have selected on the secondary market.

Please note that some private equity investments may distribute funds annually or during the term, if there is any income accrued by the investment. Any projected returns displayed includes these sums so be sure to read the messages and assess each opportunity before investing.

Loan note investments

Our loan note investments offer a fixed rate of interest, payable either monthly, quarterly, bi-annually (6 monthly), annually or on redemption – please be sure to check the listing carefully before investing.

The original listing shows returns based on the initial share price. When you look at the secondary market panel, you will see what the interest rate is at your selected share price.

Hopefully, the data we provide you with will help you make a more informed decision when trading on the Secondary Market. We believe our Secondary Market has allowed us to cement our strength within the industry as one of the pioneers in property crowdfunding. As we grow, we strive to maintain our values of transparency and credibility, whilst also continuing our mission to democratise the property market.

Written by Jenna Kamal

Disclaimer and Legals

Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.

Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).

The post The Potential for Liquidity with our Secondary Market appeared first on Economoose.