adrian77
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Post by adrian77 on Apr 11, 2021 9:59:53 GMT
Thanks for the above replies about Luflink etc - to be honest still not convinced these are worth investing in twice bitten once shy as Ian Hunter said www.youtube.com/watch?v=NKgQO6sILugAs I have said before I am a small developer and deal in cash - but I am solvent although I sometimes wonder - my bank etc are constantly trying to lend me money at about 5% so I don't need to pay a lot more with P2P and I ask myself why other developers need to pay more - granted there are spivs who have no intention of paying it back but I agree it can be arranged quickly. I read average property return is about 20% - sometimes I earn this , rarely more but often less. So what happens if the UK housing faces major short term correction which I am sure it will. Even a slow-down in sales and say a 10% fall in property values won't be pretty. I used to watch Homes Under The Hammer but the costings are so stupid it was damaging my mental health. Thus totally agree with the very eloquent and erudite comments below: At the moment at least I am giving P2P a miss - just my opinion
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arby
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Post by arby on Apr 11, 2021 10:08:25 GMT
Good list in 1st post. I was surprised at two further items; 1. Charges on property not being perfected. I'd assumed any solicitor could have drawn up a contract that gives the security expected. 2. Not providing updated downward valuations. For example, offering renewals on loans after failing to reach anything close to the loan value at previously undisclosed auctions. While the loan renewal was on the basis of the original valuation and thus less than 70% LTV, when a recent attempted auction shows the market value is much less than the renewal amount I feel FS had a duty to inform lenders. 3. Loans to close family members of the directors that turn out to be unenforceable.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 11, 2021 14:20:04 GMT
I doff my cap to you Deees because I believe you are far more informed than me, no argument............however. "There was nothing stopping lenders from insisting that platforms co-invest in loans by refusing to invest on platforms that didn’t have a suitable skin in the game business model. Bottom line is that nil or next to nil P2P platforms would have got off the ground had there been such a regulatory requirement and any that did would have struggled to reach any volume let alone breakeven volume."Re the first para, you know very well that's not reality and was never going to happen, so not really a valid point? And the second para and rest would seem to agree with me? If tha FCA had insisted on a "Capital Requirement" for P2P firms to setup, so they could co-invest c5% per Loan, then we probably would have experienced the legitimacy & professionalism you mentioned? As it was/is, ANY idiot and/or crook can easily setup a P2P Platform, and STILL can!We are only discussing, I am not having a go at you, as I'm sure you're aware. Unlike some on here who enjoy a good joust!!
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 11, 2021 14:33:10 GMT
I doff my cap to you Deees because I believe you are far more informed than me, no argument............however. "There was nothing stopping lenders from insisting that platforms co-invest in loans by refusing to invest on platforms that didn’t have a suitable skin in the game business model. Bottom line is that nil or next to nil P2P platforms would have got off the ground had there been such a regulatory requirement and any that did would have struggled to reach any volume let alone breakeven volume."Re the first para, you know very well that's not reality and was never going to happen, so not really a valid point? And the second para and rest would seem to agree with me? If tha FCA had insisted on a "Capital Requirement" for P2P firms to setup, so they could co-invest c5% per Loan, then we probably would have experienced the legitimacy & professionalism you mentioned? As it was/is, ANY idiot and/or crook can easily setup a P2P Platform, and STILL can!We are only discussing, I am not having a go at you, as I'm sure you're aware. Unlike some on here who enjoy a good joust!! OK, two points. PLatforms arnet allowed to invest in loans under the legislation so that means the FCA would be expecting them to have a partner or linked company to do it and that lending would probably be unregulated so outside the FCA remit. FCA do require platforms to meet capital threshold conditions already so we are talking about additional capital on top of that so back to Deees point. Regulation should be robust enough that platforms carry out their role as agent without adding balance sheet risk to the other risks.
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sundown
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Post by sundown on Apr 12, 2021 10:22:58 GMT
So what happens if the UK housing faces major short term correction which I am sure it will. Even a slow-down in sales and say a 10% fall in property values won't be pretty. What makes you think house prices are going to fall? With interest rates so low and the gov’t committed to keeping them low, 95% mortgages for first time buyers and demand outstripping supply there seems to be no reason why prices won’t continue to rise.
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adrian77
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Post by adrian77 on Apr 12, 2021 11:26:00 GMT
We are hopelessy in debt and have to pay for covid and sooner or later interest rates will go u.p But my main concern is that the ratio of prices to earnings is at an all time and ridiculous high - I am not saying they are going to fall in the long term but that there will be a short-term correction especially in the South East www.comparethemarket.com/home-insurance/content/house-prices-vs-income-in-the-uk/Of course I may be wrong but I am drastically reducing my house mortgage at the moment and pleased I bought my commerical properties for cash, But hey I am not a housing expert like the gurus at FS whom I am sure have studied the housing market far more than I have - I mean just look how accurate their valuations were...
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cwah
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Post by cwah on Apr 13, 2021 9:27:09 GMT
I've always said the FCA is increasing risk instead of decreasing it.
They create useless requirements for platform to comply for. Useless administrative task. Useless plans and meetings..
They'll tighten small platforms rules when they are in difficulties which leads to the inevitable bankruptcy.
Mintos, which I've been investing on it, is not FCA regulated and has been way way WAY safer than any uk platform.
They should just pay back investor for the mess they created.
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