benaj
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Post by benaj on Aug 1, 2018 11:39:00 GMT
After another default and bad debt repayment in July, I am now in real profit (i.e. withdrawal > deposit ). I suppose it could be worse for since I started investing in March '17 and sold off most of the portfolio in Dec '17.
So my real net all time profit on plus: 0.01% of all time investment value
net earning on paper: 0.41% of all time investment value
Here's the summary for July:-
Interest earned from borrowers : 1.1% of current investment value
Bonus: Refer a friend £0.00
Bad debt: New defaults : -43% of current investment value
Bad debt: Repayments from defaults
7.3% of current investment value
Net income for July: -34.8% of current investment value
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aju
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Post by aju on Aug 1, 2018 14:00:47 GMT
After another default and bad debt repayment in July, I am now in real profit (i.e. withdrawal > deposit ). I suppose it could be worse for since I started investing in March '17 and sold off most of the portfolio in Dec '17. So my real net all time profit on plus: 0.01% of all time investment value net earning on paper: 0.41% of all time investment value Here's the summary for July:- Interest earned from borrowers : 1.1% of current investment valueBonus: Refer a friend £0.00 Bad debt: New defaults : -43% of current investment valueBad debt: Repayments from defaults
7.3% of current investment valueNet income for July: -34.8% of current investment value
Not sure why you are looking at things from a monthly basis still, I'm surprised you are anywhere near a profit as most of Zopa's investments are really 5 year ones. Anyway glad you got out with at least cuff of your shirt, thats something.
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Post by point5clue on Aug 1, 2018 15:51:11 GMT
Just an alternative experience for people reading the forum who think that nobody is making money on Plus.
I drip fed a reasonable chunk of cash into a Plus ISA starting about this time last year, finished before xmas - I'm about 5 percent up so far. To start with I was getting closer to the 'headline' interest rate. This came down as the first defaults started to creap in. I've had a fair few months where more than half my interest was cancelled out by defaults - a couple, almost all all of it.
Its probably too early to be sure, but on current experience I'm expecting it to settle down to pretty much what is predicted by Zopa.
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benaj
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Post by benaj on Aug 1, 2018 18:26:57 GMT
My alternative view, I only have 2 collections left, after dipping the money for 8 months investing and withdraw 100% deposit, i can now receive income from bad debt repayment.
Not sure if I can receive this stream of revenue for the next 5-10 years, I suppose every little helps 😀
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aju
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Post by aju on Aug 1, 2018 19:01:38 GMT
Just an alternative experience for people reading the forum who think that nobody is making money on Plus. I drip fed a reasonable chunk of cash into a Plus ISA starting about this time last year, finished before xmas - I'm about 5 percent up so far. To start with I was getting closer to the 'headline' interest rate. This came down as the first defaults started to creap in. I've had a fair few months where more than half my interest was cancelled out by defaults - a couple, almost all all of it. Its probably too early to be sure, but on current experience I'm expecting it to settle down to pretty much what is predicted by Zopa. I'm working to that premise as a matter of course, so for me I only ever look at the bottom %age and anything higher is a bonus. One of the things that many people don't realise is that the way these loans work are the interest returned is at its highest levels at the start and when its nearing its end its at its lowest. This knowledge I think is what some people use on other platforms to determine to bail out of loans at the high return end. I think the tipping point on a 4/5 year loan might be towards the end of the second year, not accountmg for any sell fees etc.
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Greenwood2
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Post by Greenwood2 on Aug 2, 2018 7:02:38 GMT
The interest rate remains constant, but the amount lent reduces so the interest each month is less for an individual loan. If you're reinvesting your returns you are effectively just increasing your diversification.
I thought the usual reason to churn 5 year loans after a couple of years was due to concerns about changes in circumstances of individuals or businesses over the length of a 5 year loan.
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aju
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Post by aju on Aug 2, 2018 8:28:12 GMT
Not sure churning of that nature works on rate setter where i first saw it suggested, i think.
I agree though that a lot of recent woes of contributors on zopa forum have been concerned about default rates not churning. Many seem to have taken quite a hit. Some months do look a bit scary, especially as i have been investing large sums in small amounts the default numbers were always bound to increase after a while.
In mine and mrs aju's case we are still at <1% both by loan and by value. Most of my loans in non sg are limited to £10 levels. I remain confident that my returns are still quite stable. I have relend on all the time we are not adding new money.
I try to work the long game on the zopa investment as in our share investments too.
[Edit] My recent lending diversification, after checking, is 0.09% for Core and 0.15% for Plus. Average loan overall was £9.84 across >1700 loans
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