ammm
New Member
Posts: 3 
|
Post by ammm on Mar 16, 2016 19:51:03 GMT
Hi guys
I am new to P2P lending, and when I found it I simply went nuts. For me, 10% is incredibly high. I mean, if one makes 10% in this kind of platforms, the net will be something like 7.5% because usually 25% of the profits go to taxes (it depends from country to country of course, I am in Germany at the moment).
However, in this section (Twino), I see a lot of people complaining about 10% rates, saying that it used to be 14% and they will withdraw their money.
My question is: isn't 10% still great, given that Twino will buy all the loans that are 30 days overdue, and still pay interest and principal?
People also say "I will go to another platform, because I have higher rates (OK) at lower risk (which I don't understand)". So what exactly is risky about Twino? You're afraid the company is operating at a loss, files bankruptcy and the money of the investors is not given back?
BTW, what would be the best platform, open to Europeans in general, right now? Would you say Twino or another?
Thanks and sorry if my questions are stupid, but like I said I just started with P2P lending...
|
|
|
|
Post by wiseclerk on Mar 16, 2016 20:58:50 GMT
Hi guys I am new to P2P lending, and when I found it I simply went nuts. For me, 10% is incredibly high. I mean, if one makes 10% in this kind of platforms, the net will be something like 7.5% because usually 25% of the profits go to taxes However, in this section (Twino), I see a lot of people complaining about 10% rates, saying that it used to be 14% and they will withdraw their money. My question is: isn't 10% still great, given that Twino will buy all the loans that are 30 days overdue, and still pay interest and principal? People also say "I will go to another platform, because I have higher rates (OK) at lower risk (which I don't understand)". So what exactly is risky about Twino? You're afraid the company is operating at a loss, files bankruptcy and the money of the investors is not given back? Thanks and sorry if my questions are stupid, but like I said I just started with P2P lending... There are no stupid questions. I have an investment at Twino. Obviously the question for investors is whether the 10% interest rate is priced right for the underlying risk. Look here for a list of platforms I use www.p2p-banking.com/p2p-lending-services-open-to-international-non-resident-investors/Since you are German check out the German discussion board on p2p lending with over 60,000 posts www.p2p-kredite.com/diskussion
|
|
|
|
Post by swift on Mar 16, 2016 21:20:28 GMT
If other platforms offer higher returns with the same risk (buy back takes care of most risk, after that it's system risk. And the risk that buy back is cancelled), I chose the highest return every time. I think Twino was very smart to reinstate 12% loans. If 10% sound fine for you, go for it. I agree that I don't see much difference in risk between Twino and similar platforms.
|
|
ammm
New Member
Posts: 3
|
Post by ammm on Mar 16, 2016 22:09:23 GMT
Hi,
I actually said that I am in Germany at the moment, suggesting that I am not German ;-)
Now I gotcha, you see some risk in the system itself, but unless the company files bankruptcy, I would say it is extremely safe.
Well, 10% sounds great to me because my other investments (real estate, bonds, dividend stocks, etc) yield 6%-8% before taxes...
Another question, do you think Twino and Mintos will be around in 10 years from now? Do you think they will still provide 10% rates on loans? I really think that this is a magical investment...
thanks!
|
|
|
|
Post by swift on Mar 16, 2016 22:45:31 GMT
Keep a cool head, it's a brand new business model. I have no idea how long it might stay.
At least if a P2P site desolves, it does not mean the loans are not paid back. They can be sold to another party. Often they are not owned by the P2P site anyway.
|
|
|
|
Post by littleinvestor on Mar 16, 2016 22:54:28 GMT
Mintos is different as it is a more like a market place; probably it is to stay indeed as they take much less risk. Twino on the other hand will be more difficult to predict, it depends how good they will manage their business, but I guess 12% with buyback will go down in time, which is not necessarily a bad sign, just evolution - they just have to make sure they properly manage their communication and pr as otherwise people run away with their money and it is over. But I agree with you, in comparison with stocks,bonds, this is equal or much less in risk; those who run away with their money to get a percent more somewhere else have different reasons.
|
|
|
|
Post by swift on Mar 18, 2016 10:19:28 GMT
Well I'm glad you agree with me, but there is one thing I would like to comment on. I don't think that the interest rates should go lower than 12-15%, even when the platform becomes more mature. There is still considerable risk involved on these platforms and that might change, but the consumer rates will not change. Why should investors not benefit from the 40-50% rates that are harvested by the loan originators and be happy with 10%? It seems that there is plenty of interest to go around. The buyback guarantee makes for a good reason to get lower rates, but there is a limit to that.
|
|
homes119
Member of DD Central
Posts: 93
Likes: 19
|
Post by homes119 on Apr 2, 2016 19:11:39 GMT
Well I'm glad you agree with me, but there is one thing I would like to comment on. I don't think that the interest rates should go lower than 12-15%, even when the platform becomes more mature. There is still considerable risk involved on these platforms and that might change, but the consumer rates will not change. Why should investors not benefit from the 40-50% rates that are harvested by the loan originators and be happy with 10%? It seems that there is plenty of interest to go around. The buyback guarantee makes for a good reason to get lower rates, but there is a limit to that. Agreed, and actually it's closer to 90-100% in some cases (I haven't checked all the finabay entitities)
www.opencredit.lv/
Also if you check the financials of finabay on
www.twino.eu/about.html
You can see a 30% provision for doubtful debts.
|
|
|
|
Post by swift on Apr 3, 2016 15:00:33 GMT
One might be inclined to ask Twino why they require such a massive margin. Or to ask if these rates are sustainable. One thing I really like in Twino is the availability of 1 month loans. Seems a wise choice given these platform uncertainties.
|
|
lee
Posts: 18 
Likes: 1
|
Post by lee on Apr 6, 2016 13:00:09 GMT
Why there are no more 12% loans? Nothing since yesterday. Usually there were Georgian loans added daily
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
|
Post by JamesFrance on Apr 6, 2016 13:53:01 GMT
Last night most of my daily repayments picked up new ones at 12% and I hope the same will apply tonight.
This morning there were several pages of 12% loans shown with each less than 10€ available but not for long. Now there are only delayed and extended loans at 10% available which are probably resales.
I think they have finished selling off the 10% loans which were too low for most of us so hopefully the supply of new loans at 12% will start to appear now.
|
|
lee
Posts: 18
Likes: 1
|
Post by lee on Apr 6, 2016 14:16:02 GMT
I think the ones which appeared today it was just somebody selling their clips because issue moth for most of them was march. waiting for new loans because i dont like that the money is just sitting there
|
|
lee
Posts: 18
Likes: 1
|
Post by lee on Apr 6, 2016 19:00:17 GMT
i start to get a bit worried that there are just resales of loans and no new loans. that makes me want to sell my loans and withdraw money. feeling a bit worried. hope to see new loans very soon
|
|
|
|
Post by dagoatla on Apr 6, 2016 19:43:13 GMT
Hopefully there isn't another rate cut coming, and they cleared the market to get ready for it.
|
|
|
|
Post by littleinvestor on Apr 7, 2016 11:42:08 GMT
On the other hand I see a lot of new 12% loans appearing for longer loan duration's (>6m).
Can also be the opening for GBP was a success and attracted a lot of investors, explaining all 12% were gone immediately.
|
|
