{"id":7379,"date":"2020-06-05T07:49:41","date_gmt":"2020-06-05T07:49:41","guid":{"rendered":"https:\/\/www.foxymonkey.com\/?p=7379"},"modified":"2020-06-05T08:14:18","modified_gmt":"2020-06-05T08:14:18","slug":"property-partner-coronavirus","status":"publish","type":"post","link":"https:\/\/www.foxymonkey.com\/property-partner-coronavirus\/","title":{"rendered":"Property Partner Investing during Coronavirus"},"content":{"rendered":"\n<p>This is a review of my Property Partner investments so far. The property market has been hit by coronavirus and Property Partner is no exception.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.foxymonkey.com\/recommends\/propertypartnerfront\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"300\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources.jpg\" alt=\"Property partner crowdfunding investment\" class=\"wp-image-5131 lazyload\" data-srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources.jpg 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources-150x150.jpg 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><noscript><img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources.jpg\" alt=\"Property partner crowdfunding investment\" class=\"wp-image-5131 lazyload\" srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources.jpg 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2018\/12\/property-partner-resources-150x150.jpg 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript><\/a><\/figure>\n\n\n\n<p>I <a href=\"https:\/\/www.foxymonkey.com\/property-partner-experiment-1\/\">first wrote<\/a> about Property Partner in 2018. Since this is a new breed of platforms I thought of starting with a capital of \u00a310,000 and topping it up every year. <\/p>\n\n\n\n<p>I always liked Property as an asset class. UK property owners have done very well in the past 40 years. I doubt things will look as rosy in the future but I still want part of it despite the challenging environment.<\/p>\n\n\n\n<p>I certainly don&#8217;t want to be 100% stocks\/bonds which is why I consider property to be a good alternative.<\/p>\n\n\n\n<p>The reason I invest through <a href=\"https:\/\/www.foxymonkey.com\/recommends\/pp-q2-20\/\" data-eafl-id=\"7414\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">Property Partner<\/a> is simple. Diversified property portfolio across different UK areas with no hassle of managing tenants or sourcing properties. I guess you can do the same with REITs but they focus on commercial properties instead. I also don&#8217;t like the fact REITs are highly correlated with my stock investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Some history to where we are now<\/h2>\n\n\n\n<p>Things started very well with Property Partner. I started investing in 2018 and I was really happy with the fee structure. Basically, a one-off fee on the way in. That was too good to be sustainable.<\/p>\n\n\n\n<p>Then Property Partner <a href=\"https:\/\/www.foxymonkey.com\/property-partner-fee-is-it-worth-it\/\">increased their fees<\/a> substantially for smaller investors. From mid-2019 on, you pay 1.2% fees up to \u00a320k portfolio and 0.7% after that. As I reported last year, my personal returns were <strong>6.5-7% before fees<\/strong> but 5.67% <strong>after<\/strong> fees in the first 12 months of investing.<\/p>\n\n\n\n<p>Higher fees dropped the appetite and brought dissatisfaction and a feeling of mistrust to investors. I judge from the conversations I had with many of you. Of course, you have the option to sell in the secondary market, but this dropped after the news.<\/p>\n\n\n\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"5569\" class=\"elementor elementor-5569\">\n\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-80f1755 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"80f1755\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2709e7b\" data-id=\"2709e7b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b38b97 elementor-widget elementor-widget-html\" data-id=\"1b38b97\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\r\n\r\n<div style=\"width: 335px; display: inline-block;\">\r\n    <a style=\"position: relative; display: inline-block;\" href=\"https:\/\/www.propertypartner.co?r=foxymonkey\" target=\"_blank\" rel=\"nofollow\"> \r\n    <iframe class=\"lazyload\" style=\"z-index: 2;\" data-src=\"https:\/\/www.propertypartner.co\/properties\/embed-latest?r=foxymonkey\" width=\"335\" height=\"477\" frameborder=\"0\"><\/iframe>\r\n    <div style=\"position: absolute; top: 0; right: 0; left: 0; bottom:0; z-index: 1;\"><\/div>\r\n    <\/a>\r\n\r\n<\/div>\r\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n\n\n\n<p>Property Partner wouldn&#8217;t exist as a company anymore had they not increased their fees. So I totally get it.<\/p>\n\n\n\n<p>I decided to stay the course because property values hadn&#8217;t been impacted so much. It&#8217;s frustrated investors who want out that drive the market prices &#8211; and that&#8217;s understandable.<\/p>\n\n\n\n<p>Just when PP tried to re-build its branding and attract new investments COVID hits. The forced shut-down meant that <a rel=\"noreferrer noopener\" href=\"https:\/\/www.statista.com\/statistics\/1116638\/uk-number-of-people-on-furlough\/\" target=\"_blank\">8.4m people<\/a> are under the UK furlough scheme. The government pays 80% of their wages &#8211; IF they are not made redundant. I&#8217;m sure some people lost their jobs and didn&#8217;t get a penny. Others in the gig economy (think your Deliveroo driver) can&#8217;t take advantage of the government pay.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Eat or pay the rent?<\/h2>\n\n\n\n<p>I&#8217;m also sure some people are trying to take advantage of the situation. They ask for rent holidays or reductions without being affected. Like my friend who got a 50% rent reduction for 2 months while still working full-time from home. And which landlord would want a vacant property in this climate?<\/p>\n\n\n\n<p>I&#8217;m not sure what to believe though. One report saying that rent arrears have only <a rel=\"noreferrer noopener\" href=\"https:\/\/www.landlordzone.co.uk\/news\/exclusive-rent-arrears-have-increased-by-only-3-says-leading-lettings-agency\" target=\"_blank\">increased <\/a>by 3%.  Then Citizens Advice&nbsp;<a href=\"https:\/\/www.citizensadvice.org.uk\/about-us\/how-citizens-advice-works\/media\/press-releases\/millions-facing-financial-cliff-edge-when-coronavirus-protections-end2\/\">found<\/a> that 2.6 million private renters have already missed, or expect to miss, a rent payment due to the crisis (1st May &#8217;20). And here&#8217;s Property Partner&#8217;s rent arrears stats as posted in their latest post:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"574\" height=\"40\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears.png\" alt=\"property partner rent arrears\" class=\"wp-image-7392 lazyload\" data-srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears.png 574w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears-300x21.png 300w\" sizes=\"(max-width: 574px) 100vw, 574px\" \/><noscript><img decoding=\"async\" width=\"574\" height=\"40\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears.png\" alt=\"property partner rent arrears\" class=\"wp-image-7392 lazyload\" srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears.png 574w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/rent-arrears-300x21.png 300w\" sizes=\"(max-width: 574px) 100vw, 574px\" \/><\/noscript><figcaption>Rent arrears up to 30% in the past 5 months<\/figcaption><\/figure>\n\n\n\n<p><strong>PP has suspended dividends in all properties<\/strong> to make sure each property can pay its mortgage now that so many properties have reduced rent. Suspending the dividends is also a condition by the banks if you want to freeze the mortgage. <\/p>\n\n\n\n<p>Initially, this was only up to March 2020. But now they&#8217;re extending it to September 2020. This doesn&#8217;t mean that tenants don&#8217;t pay the rent. The rent payments for the 70% who&#8217;re not in arrears accumulate in each property. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Net income that is earned in the next 3 months will accumulate within each property\u2019s bank balance, for the benefit of that property\u2019s capital reserves and that property\u2019s investors.<\/p><cite>Property Partner on the <a href=\"https:\/\/www.foxymonkey.com\/recommends\/bangor-uni\/\" data-eafl-id=\"6522\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">property webpage<\/a><\/cite><\/blockquote>\n\n\n\n<p>Rent accumulates inside each property fund but is not paid out to us.<\/p>\n\n\n\n<p>Suspending the mortgage payments means that the outgoings are also very small for us, investors.<\/p>\n\n\n\n<p>In this climate, landlords get a mortgage holiday for 3 months. Which is also what <a href=\"https:\/\/www.foxymonkey.com\/recommends\/pp-q2-20\/\" data-eafl-id=\"7414\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">Property Partner<\/a> said they&#8217;re doing. They have agreed to a mortgage freeze with the banks for the past 3 months and are trying to extend it for another 3 months.<\/p>\n\n\n\n<p>But this is on the condition that the rent is not being paid out to equity holders &#8211; us. In other words, the bank says: <em>You can&#8217;t pocket the rent while having spare money around.<\/em><\/p>\n\n\n\n<p>So how are Property Partner investments performing during the pandemic?<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y.png\"><img decoding=\"async\" width=\"1494\" height=\"775\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y.png\" alt=\"property partner performance coronavirus\" class=\"wp-image-7385 lazyload\" data-srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y.png 1494w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-300x156.png 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-1024x531.png 1024w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-768x398.png 768w\" sizes=\"(max-width: 1494px) 100vw, 1494px\" \/><noscript><img decoding=\"async\" width=\"1494\" height=\"775\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y.png\" alt=\"property partner performance coronavirus\" class=\"wp-image-7385 lazyload\" srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y.png 1494w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-300x156.png 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-1024x531.png 1024w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/property-partner-index-3y-768x398.png 768w\" sizes=\"(max-width: 1494px) 100vw, 1494px\" \/><\/noscript><\/a><figcaption>PP Share Trading Index: All properties<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>COVID hit the Property Partner marketplace by 12% from peak to trough in late March. This, in combination with the previous fee sell-off, results in the market trading at a -18%  discount to the property valuations reported late March.<\/p>\n\n\n\n<p>Coincidentally, this is roughly how much the FTSE 100 is off from its February highs. -16% as of 4th of June that I&#8217;m writing this.<\/p>\n\n\n\n<p>Property Partner haven&#8217;t given us a clear picture of how much rent we&#8217;ve lost per property during coronavirus. Also, what does rent arrears mean? How much &#8220;reduced&#8221; are we talking about on average across all properties?<\/p>\n\n\n\n<p>If this is a 6-month freeze both in rent <strong>and<\/strong> mortgage payments then the PP market sell-off is not justified. The market is overreacting. But if tenants don&#8217;t pay the rent <strong>at all<\/strong> later on, then things are getting worse.<\/p>\n\n\n\n<p>Rent payments aside, what about the damage to property prices due to COVID? Guardian\/Nationwide <a rel=\"noreferrer noopener\" href=\"https:\/\/www.theguardian.com\/business\/2020\/jun\/02\/uk-house-prices-fall-coronavirus-nationwide\" target=\"_blank\">wrote <\/a>on June 2nd: &#8220;The annual growth rate slowed to 1.8%, down from 3.7% in April and the slowest since December.&#8221;. <\/p>\n\n\n\n<p>You&#8217;ll need to read behind the title: <em>&#8220;UK house prices fall at fastest rate since 2009 amid coronavirus crisis&#8221;.<\/em> Only to find out what they mean is: &#8220;<em>Property prices are rising slower than before.&#8221;<\/em>. Is this because of all the gov support and the money printing? I don&#8217;t know. But if it&#8217;s true, it&#8217;s definitely better than I expected. Maybe we haven&#8217;t seen the full impact yet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>This is why investing is hard<\/strong><\/h2>\n\n\n\n<p>You have to always weigh risk vs reward. I can imagine people in 2022 saying one thing or the other:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Things looking good: <br><em>Of course, Property is back up now that we&#8217;ve got the vaccine. Did you really have to sell at a loss? You&#8217;re not meant to be a property investor.<\/em><\/li><li>Things not looking good: <br><em>You should have sold when it was only 10% down. What were you waiting for?<\/em><\/li><\/ol>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"480\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/choice.gif\" alt=\"your choice bandersnatch\" class=\"wp-image-7387 lazyload\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"480\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/choice.gif\" alt=\"your choice bandersnatch\" class=\"wp-image-7387 lazyload\"\/><\/noscript><figcaption>What is it gonna be? <\/figcaption><\/figure>\n\n\n\n<p>Right now, investor&#8217;s psychology is at an all-time low. Unemployment at an all-time high, rent arrears left and right, people not spending much fearing they will contract the virus, etc. When things are rosy, people are overexcited and happily pay a <strong>25% premium<\/strong> for owning fancy <a href=\"https:\/\/www.foxymonkey.com\/recommends\/golden-hill-fort\/\" data-eafl-id=\"6114\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">fortress properties<\/a>.<\/p>\n\n\n\n<p>This is also another challenge when investing in property crowdfunding vs traditional Buy to Let. In good times, you have the option of selling at a click and cash in your chips. But unlike BTL, in bad times, you can actually <strong>see the loss right in front of your eyes<\/strong>.<\/p>\n\n\n\n<p>You can&#8217;t easily find out your BTL value. Unless you sell. And nearby comparables can only tell you so much. It&#8217;s also a hassle to do the research. So you presume that the property present value probably hasn&#8217;t changed much. Or you make stories in your head that it has even increased. Since this is a long-term investment, you&#8217;ll sell it when it&#8217;s time. <\/p>\n\n\n\n<p>But being able to sell and buy at a click comes with behavioural costs!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">My portfolio and what I am doing<\/h2>\n\n\n\n<p>Some of my holdings are purpose-built university accommodation (PBSA). 30% of my portfolio to be exact. I believe these are in worse condition because if there&#8217;s no campus, there&#8217;s no student and no rent. <\/p>\n\n\n\n<p>But at the same time, I&#8217;m not willing to sell at a 20-25% loss! I think if these traded at a 10% loss I would be selling. I&#8217;ll keep an eye on these ones. There&#8217;s just too much uncertainty around the new operational model for universities.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020.png\" alt=\"secondary market discount university property\" class=\"wp-image-7398 lazyload\" width=\"379\" height=\"535\" data-srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020.png 758w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020-213x300.png 213w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020-725x1024.png 725w\" sizes=\"(max-width: 379px) 100vw, 379px\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020.png\" alt=\"secondary market discount university property\" class=\"wp-image-7398 lazyload\" width=\"379\" height=\"535\" srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020.png 758w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020-213x300.png 213w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/bangor-31-may-2020-725x1024.png 725w\" sizes=\"(max-width: 379px) 100vw, 379px\" \/><\/noscript><figcaption><a href=\"https:\/\/www.foxymonkey.com\/recommends\/bangor-uni\/\" data-eafl-id=\"6522\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">Bangor, Wales 60-unit block<\/a><\/figcaption><\/figure>\n\n\n\n<p>Someone is willing to buy from me at this price and I don&#8217;t think it&#8217;s worth giving them an opportunity for a ~10% yield down the line.<\/p>\n\n\n\n<p>Because I am <a href=\"https:\/\/www.foxymonkey.com\/how-to-invest-your-company-profits\/\">investing through my limited company<\/a>, university accommodation has an added tax benefit. Rent is paid out as dividends and is tax-free. This is <a href=\"https:\/\/www.foxymonkey.com\/how-taxes-work-property-partner\/\">how taxes work in Property Partner<\/a>. PBSAs represent about <strong>30%<\/strong> of my property portfolio. Pre-COVID I was comfortable with this allocation, now I&#8217;m not.<\/p>\n\n\n\n<p>My non-uni properties are performing much better. One of my favourites, <a href=\"https:\/\/www.foxymonkey.com\/recommends\/chester-pp-interview\/\" data-eafl-id=\"6116\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">The Warehouse in Chester<\/a>, is down just 8%  from its latest valuation of late March.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.foxymonkey.com\/recommends\/chester-pp-interview\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" width=\"1800\" height=\"1200\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img.jpg\" alt=\"Chester property partner\" class=\"wp-image-7399 lazyload\" data-srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img.jpg 1800w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-300x200.jpg 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-1024x683.jpg 1024w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-768x512.jpg 768w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1800\" height=\"1200\" src=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img.jpg\" alt=\"Chester property partner\" class=\"wp-image-7399 lazyload\" srcset=\"https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img.jpg 1800w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-300x200.jpg 300w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-1024x683.jpg 1024w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-768x512.jpg 768w, https:\/\/www.foxymonkey.com\/wp-content\/uploads\/2020\/05\/chester-property-img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/noscript><\/a><figcaption>My <a href=\"https:\/\/www.foxymonkey.com\/recommends\/chester-pp-interview\/\" data-eafl-id=\"6116\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">4-flat block<\/a> in Chester<\/figcaption><\/figure>\n\n\n\n<p>Does the secondary market expect property prices to drop 8% in the next valuation round?<\/p>\n\n\n\n<p>My favourite type of properties are in the Northwest where prices are not crazy high (yet) , yields are &gt;= 4.0% and where there is room for price growth. Solid properties with good fundamentals. I&#8217;m not selling those.<\/p>\n\n\n\n<p>My <a href=\"https:\/\/www.foxymonkey.com\/recommends\/epsom-dev-loan\/\" data-eafl-id=\"7407\" data-eafl-parsed=\"1\" class=\"eafl-link eafl-link-text eafl-link-cloaked\" target=\"_blank\" rel=\"nofollow\">development loan<\/a> in Epsom, Surrey yielding 9.5% is probably not going to be ready by November 2020.<\/p>\n\n\n\n<p>As I&#8217;ve previously mentioned, property makes up ~12% of <a href=\"https:\/\/www.foxymonkey.com\/fi-getting-real\/\">my portfolio<\/a>. I&#8217;ve always liked property and would like to get more exposure, up to 1\/3rd of my net worth. But too much GBP exposure during coronavirus doesn&#8217;t make for a good night&#8217;s sleep. So I&#8217;m not adding any more money just yet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">On other news<\/h2>\n\n\n\n<p>The 5-year exit plan of properties is on hold. They&#8217;ve started a new capital discount investment plan where you purchase properties that are selling at a -15% discount or more. If properties bounce back after coronavirus there&#8217;s money to be made. But will they?<\/p>\n\n\n\n<p>We should expect to hear next from <a href=\"https:\/\/www.propertypartner.co\/?r=foxymonkey\">Property Partner<\/a> on the 31st of July. Until then, keep calm and carry on ;)<\/p>\n\n\n\n<p><strong>I&#8217;m interested to hear from you.<\/strong><\/p>\n\n\n\n<p><strong>Those of you who run your Buy-to-Lets, have you frozen or reduced the rent? And those of who are renting, have you asked for a reduction from your landlord?<\/strong><\/p>\n\n\n\n<p>Related articles:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.foxymonkey.com\/coronavirus-special-investing\/\">Coronavirus Special: Investing during a pandemic<\/a><\/li><li><a href=\"https:\/\/www.foxymonkey.com\/property-partner-experiment-1\/\">The Property Partner Experiment \u2013 Q4 2018<\/a><\/li><li><a href=\"https:\/\/www.foxymonkey.com\/property-partner-returns-how-much-can-you-really-make\/\">Property Partner Returns: How much can you really make?<\/a><\/li><\/ul>\n\n\n\n<p>Disclaimer: This is not financial advice and you are liable for any losses. As always do your own research!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is a review of my Property Partner investments so far. The property market has been hit by coronavirus and Property Partner is no exception. &#8230; <a title=\"Property Partner Investing during Coronavirus\" class=\"read-more\" href=\"https:\/\/www.foxymonkey.com\/property-partner-coronavirus\/\" aria-label=\"More on Property Partner Investing during Coronavirus\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":7441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[212,130,245],"class_list":["post-7379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-passive-income","tag-property","tag-property-partner"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Property Partner Investing during Coronavirus - Foxy Monkey<\/title>\n<meta name=\"description\" content=\"Property partner has been hit hard by the coronavirus. 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