kaya
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Post by kaya on Dec 13, 2016 14:32:02 GMT
You have done well, maybe you should go for the new promotion!
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awk
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Post by awk on Dec 13, 2016 14:33:48 GMT
Hi trias , well done on getting your money out. All P2P interest is paid out gross, i.e. Without tax deducted. Therefore you should declare this on your tax return. I'm fairly sure that receiving ANY gross interest is one of the triggers for having to complete a tax return (even if you are a non tax payer), so if you haven't completed one for last tax year 2015/16, then you need to do so asap - I think the deadline is the end of January. LC provide you with a interest summary on the website which you can use to complete the return. This same information goes to HRMC so they know what interest you have earnt. Anyone please correct me if the above isn't correct.
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kaya
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Post by kaya on Dec 13, 2016 15:03:24 GMT
The Govt. page seems contradictory:
You’ll need to send a tax return if, in the last tax year:
you were self-employed - you can deduct allowable expenses you got £2,500 or more in untaxed income, for example from renting out a property or savings and investments - contact the helpline if it was less than £2,500 your savings or investment income was £10,000 or more before tax
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Post by Butch Cassidy on Dec 14, 2016 15:41:23 GMT
I invested a 'sampler' of 1K to check out the platform. I have had a net return of 250 quid on that in year 1 averaging around 10% interest from about 30 loans.... But I have been very picky as to which ones. Only one loan part in default .. and that is only for 20 quid. So if nothing is recovered on that I am still well ahead for the year. Probably will probably let these loans run down, re-investing monies in loans that appear attractive. Lending crowd are only a tiny element in my p2p investments but it is useful for diversification. Whilst we may not be the typical investors on LC my results very much reflect those of @hartshay; after 13 months my £1k test investment is now upto £1325 (£150 bonus + interest) but only spread across 12 selectively chosen loans (currently no defaults but a couple have had late/delayed payments & since recovered). I reject far more loans than I invest in & prefer to recycle income into PM loans, which allows top rates to be maintained rather than the opaque SM merged rates.
Overall I am satisfied with the performance but am not currently planning to increase my investment, largely due to a combination of linked factors, namely the platforms lack of investor focus, restricted PM/new loan volumes & opaque SM. Initially I saw LC had the potential to become a main stream player, benefitting from the FC exodus after introducing fixed rates, but I see it now being a niche player at best, having squandered the golden opportunity for expansion it had 12-18 months ago which is a real shame. I don't intend to sell & run as it seems many others are doing but to allow my loans to naturally rundown & see where the platform is at that time & what direction it takes over the next couple of years.
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TheDriver
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Slightly bonkers
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Post by TheDriver on Dec 18, 2016 5:53:58 GMT
Wow; I make that about 14% after fees, which means you must be averaging more than 15% gross! LC must have had several high-paying offers a year or so ago, and you must have had minimal delay in placing funds. They should do a case-study on your performance of how good it can get - but NOT call it "Typical Investor Experience"!
However, assuming reasonably equal holdings, with the lack of diversification it would only take one unfortunate loss to wipe out the majority of that interest, and last year's Bad Debts are currently approaching 5% across nearly 10% of loans issued. You obviously have better DD than LC!
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SteveT
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Post by SteveT on Dec 18, 2016 9:01:37 GMT
The "Net Earnings" on my original £1000 stake is now up to £373.55 but £250 of that was bonuses (£100 + £50 on opening account, plus 2 further £50 referrals) giving a net rate of around 11.5%. Perhaps Butch Cassidy also snagged a £50 referral? I've now withdrawn the full £1000 stake so am left with just "profit" still invested, although £70 of this is in the filthy bar/restaurant. Could be a lot worse but I suspect I'll still be a reluctant LC lender for another year or two yet ...
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Steerpike
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Post by Steerpike on Dec 18, 2016 9:48:35 GMT
XIRR is currently 18.15%.
Allowing for 50% loss on A****** and L***** reduces this to 16.02%.
Also ignoring promotions results in 8.02%.
I think that this is about the figure that Lending Crowd quote as typical and beats my 3 year record on FK.
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Post by Butch Cassidy on Dec 18, 2016 10:02:23 GMT
My investment approach, across all platforms that I lend through, is to apply some common sense rules to every proposition; Does the SME borrower have a solid business plan, proven track record, offering that is easy to understand, likely to be successful, good reason to apply for funding etc - most get rejected at this first test & only then ask does the rate being proposed reflect the inherent risk of the project, more fail this test, so having rejected probably 90% of the opportunities offered I will look at bit harder at what is left; I work on the basis that there will be far more lending opportunities than I have available funds so to be ruthless at this initial stage & throw out plenty of good along with the bad is not a problem & well worth the effort - any future default is best avoided at this stage, even if that means losing some solid loans at the same time.
My LC test account was opened 1/10/15 with £1000 + £150 bonus, so £175 interest, currently only 12 holdings with the 2 largest holdings accounting for 50% of the value (W**** H**** rate 12.95% & V**** I***** rate 14.3%) the other 10 all approx. £60-100 each, ave rate c. 13% but interest has been reinvested so benefits from compounding. I now have H*** Lab rate 14.3% that is late, due 12th Dec. Obviously the fewer holdings you have the less chance of a default but the bigger impact any default is likely to have - I am happy to take that risk in the belief my DD + good fortune will help me beat the "fully diversified" type strategy.
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TheDriver
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Slightly bonkers
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Post by TheDriver on Dec 18, 2016 16:51:32 GMT
Hi @butch Cassidy;
I'm fairly new to P2P, and still getting used to the environment. However, I have come around to your selective approach on LC in particular, where ratings - and indeed almost everything else in the proposals - often seem questionable, or worse. Trouble is it's taking too much effort and I'm now rejecting almost everything presented, plus the platform has lost credibility in my eyes which is why I am intending a phased withdrawal.
You have more faith than me in VI, which I finally sold out after the last time it stumbled - I had put it's popularity down to being one of the soonest to end, with people wanting to buy an exit! - I hope it comes thru for you, but never fancied HL.
I still make £175 interest on £1150 over 13 months 14% net, so you would seem to be grossing over 15% - maybe I have an issue with the math!?! Perhaps someone will sanity-check that, but overall I'm just jealous, now having 3 red items on my listing!
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Post by Butch Cassidy on Dec 18, 2016 20:11:56 GMT
I agree that the loss of investor confidence has hit LC hard & is restricting their ability to push loan volume, even at the sub £50k level which I see as a minimum requirement for any platform health going forward. However the same happened at Rebs & they appear to be turning a corner & recovering slightly so hope remains. I am naturally a contrarian investor & am more likely to go in the opposite direction of any crowd stampede so currently LC does allow time for Q&A + DD & thoughtful investment decisions, which is more desirable than the FFF operations or bot hoovering seen on rival platforms - there is always a silver lining to high default platforms!
On the loans specifically V**** I**** only owes £7k from the original £30k so I have no worries with that one; H**** Lab has paid back approx. 30% of the original £30k but hopefully is just experiencing seasonal cash flow problems that happen with small, rapidly growing businesses - late payments do not concern me too much as long as the underlying business is strong & the owner is honest - which is why I avoid lending to Lawyers, they lie & cheat for a living so it is no surprise that they are also unreliable to lend to, as is repeatedly proved on other platforms but people always seem surprised when they default.
I think your maths is underestimating the power of compounding the interest & lack of cash drag on my overall return but I don't bother with exact calculations - as long as this week/month/year's portfolio valuation is an increase on last things are going in the right direction & I must be doing most things correctly. Personally I wouldn't worry about rejecting too many/every opportunities it is much better to sit on cash & wait for one that you are certain about than risk your hard earned on something that makes you uncomfortable because when it does default you will only have yourself to blame - too many lenders want to blame the platform, brexit, FCA in fact anyone but themselves; my golden rule is DO NOT SIMPLY TRUST PLATFORM DD as their interests do not always align with investors. Just look at the grade inflation on FC, rates drop on AC, defaults on Bondora for evidence that investors are often seen as the fall guys not the customers in the drive for growth.
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adrianc
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Post by adrianc on Jan 16, 2017 18:53:01 GMT
I dunno who nudged the site, but that's two part sales in a few days, after a month of nothing. Two more, and I'm out of all my live ones.
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treeman
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Post by treeman on Jan 16, 2017 19:35:39 GMT
I dunno who nudged the site, but that's two part sales in a few days, after a month of nothing. Two more, and I'm out of all my live ones. Had a couple of bites a week ago - first since mid Dec - none since ....... Only 8 quid short of recouping initial investment now 8 live loans left ................
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adrianc
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Post by adrianc on Jan 16, 2017 19:39:18 GMT
I dunno who nudged the site, but that's two part sales in a few days, after a month of nothing. Two more, and I'm out of all my live ones. Had a couple of bites a week ago - first since mid Dec - none since ....... Only 8 quid short of recouping initial investment now 8 live loans left ................ £60 more out than went in, and another £36 in live parts. Cross those fingers!
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Post by GSV3MIaC on Jan 16, 2017 21:32:24 GMT
My partner has also extract £40 more than she put in (thanks to cashback and bonuses), but I'm still stuck with some unsold parts. I dunno why hers sell and mine don't .. but then I don't understand the SM at all (does anyone?!).
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awk
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Post by awk on Jan 18, 2017 15:53:35 GMT
Over a month since my last sale now - just need someone to buy my final £18 worth of GH E**** C******* L****** and I'm out
I'm up £157 (I have withdrawn £1157), with £18 still tied up in this final saleable loan, a further £57 "in arrears" (not expecting to see it again) and £26 of declared "losses"
So, better than I had feared, but good job I got the bonuses - just got to pay the tax bill now.
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