Dizzying heights of sheer foolishness - "$500 to get into the Auckland property..."

[PTWhatAGreatForum]

$500 to get into the Auckland property market?

A new business has this morning unveiled a scheme to offer shares in Auckland houses as an alternative way for people to get onto the property ladder.
Auckland-based The Ownery will offer what it is calling "HouseShares" starting from $500 and its founders say it will be a way for people to get into the city's fast-rising market.
Cheaper homes - which first-home buyers might wish to buy - will be a target for the company.
Paul Jacobs and Kurt Settle are Kiwis who have returned home after careers in the IT, banking and hedge fund sectors overseas and their unusual offer will be regulated by the Financial Markets Authority.
NZX listed property entities currently only offer shares or units in commercial, retail and industrial properties and unlike many countries overseas, New Zealand's financial system offers no way for investors to get into the residential market via the stock market.

Full article:http://www.nzherald.co.nz/business/n...ectid=11629471

[PTWhatAGreatForum]

Oh my G-d - just when I thought it couldn't get worse.... Where shall I start with the list of "what's wrong" -

1. Investment reliant on yields which are now very low in Auckland

2. Buying at probable top of the curve

3. How the hell is there doing to be anything left to pay the dickheads, opps I mean "investors", who put their money in this scheme of crass gullibility?

4. Someone will be making money of of this by way of management fees and oh my goodness... twice yearly registered valuations....

5. Little or no economy of scale.

[Boom]

Oh my G-d - just when I thought it couldn't get worse.... Where shall I start with the list of "what's wrong" -

1. Investment reliant on yields which are now very low in Auckland

2. Buying at probable top of the curve

3. How the hell is there doing to be anything left to pay the dickheads, opps I mean "investors", who put their money in this scheme of crass gullibility?

4. Someone will be making money of of this by way of management fees and oh my goodness... twice yearly registered valuations....

5. Little or no economy of scale.

"We will help first home buyers by investing in the houses that they would look to buy (putting prices up further) and using their money to do it.... while collecting our directors fees."

All these "new" "revolutionary" companies remind me of the "blue chip" et al around in the mid 2000s.

[Nick G]

There's a reason syndicates tend to be large, it takes a certain amount of scale to make the overheads a reasonably justifiable cost.

[PTWhatAGreatForum]

There's a reason syndicates tend to be large, it takes a certain amount of scale to make the overheads a reasonably justifiable cost.

In this case it will be the opposite. A bunch of fools, opps I mean "investors" for each property? How are they ever going to make it pay? Easily for them no doubt. The rental will cover accounting, valuation, scheme management, property management etc etc fees... but how much will be left?

"How does a shareholder make money?" in their press release is a doozy.

[jappronz]

michael i dont disagree with any of what your saying here but your the one that sounds like a dick saying things like

'3. How the hell is there doing to be anything left to pay the dickheads, opps I mean "investors" '


your an investor just the same and I'm sure there would be plenty of people thinking your a dickhead sulking about everything and buying a 60k house in the boondocks, but its your choice just the same.

The holier than thou attitude is pretty depressing.

[PTWhatAGreatForum]

michael i dont disagree with any of what your saying here but your the one that sounds like a dick saying things like

'3. How the hell is there doing to be anything left to pay the dickheads, opps I mean "investors" '

Comments from someone who's engaged stuff all here. If you don't like it, ignore. Simple.

Your comparison is plain stupid. There is a bunch of people here who have invested in provincial areas and believe they offer an opportunity. Likewise, I doubt there is one person here who would support your obvious contention the "investment" outlined in the NZ Herald is a great deal.

[jappronz]

Comments from someone who's engaged stuff all here. If you don't like it, ignore. Simple.

Your comparison is plain stupid. There is a bunch of people here who have invested in provincial areas and believe they offer an opportunity. Likewise, I doubt there is one person here who would support your obvious contention the "investment" outlined in the NZ Herald is a great deal.

Yea fair enough i probably should ignore it, your type must just grind my gears.

My obvious contention? if you read that from "i don't disagree with any of what your saying" then you need a check.

All the people you have been shedding false tears for are first home buyers or people who 'cant afford a home' yet these are the target of this fund, however now they become dickheads in your mind. An astute investor wouldn't look twice at it.

Also im sure plenty of people make money in boondocks provincial nz, and i make no claim to know either way. The numbers may stack up but they rarely do from what I've read on this forum and the successful investors I've spoken with. They are all probably plain stupid also though?

It may well be the reason its 60k is no one wants to touch it, but good on you for executing (or most likely not) what you thinks best.

[PTWhatAGreatForum]

delete duplicate post

[PTWhatAGreatForum]

Yea fair enough i probably should ignore it, your type must just grind my gears.

My obvious contention? if you read that from "i don't disagree with any of what your saying" then you need a check.

Love it or hate it, you took the time to respond. I am most grateful. lol.

All the people you have been shedding false tears for are first home buyers or people who 'cant afford a home' yet these are the target of this fund, however now they become dickheads in your mind. An astute investor wouldn't look twice at it.

https://en.wikipedia.org/wiki/There's_a_sucker_born_every_minute

.....

It may well be the reason its 60k is no one wants to touch it, but good on you for executing (or most likely not) what you thinks best.

What a load of crap. You know nothing.

[Sportsvee]

There will also be Property Mogul who will come online later this year.

Sure the organisers may look after themselves first, but it doesn't mean the concept should be poo poo'ed straight away. You never know, it might work.

Like everything - due diligence.

[Beano]

You can still invest in Auckland and make a reasonable profit
If all these $500 are invested in say Ponsonby Auckland the net yield is about 7.5pc (syndicate )
That 7.5% has all management fees already deducted (2pc)
Ps Ponsonby is a good location and i beleive better than buying in the back blocks

[Bobsyouruncle]

This sort of please the poor masses investment is a great idea. People feel like they are getting ahead and providing it is non leaky residential or commercial in a main city the risk is very low. Good on them.

[Beano]

The ponsonby investment is 4 williamson ave Cider dyndicate by Oystergroup.co.nz

[Bobsyouruncle]

Yep don't touch that it is way over priced, but there are some reasonable deals around.