damar
Member of DD Central
Posts: 110 
Likes: 47
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Post by damar on Jan 19, 2017 11:53:57 GMT
Hi everyone,
I have been using FC for about two and a half years, and I have been very happy with it, I have had a few losses, but not much as I always try and stick to my £20 max rule.
Over the last 4 months I have made very little, as the number of defaults has gone up, obviously I expect to have more defaults the more was invested, but I expected it to be roughly in line with the interest gained.
I have some funds in saving stream, the pay a good rate of 12%, however this is only on property so there is no principal repayment.
This is where my problem lies, if I leave FC who do I use, I like the FC model with the principal and interest payment, as it generates more monies to reinvest.
SO, who else are you good people using instead of, or maybe as well as FC.
Thanks
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voss
Member of DD Central
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Post by voss on Jan 19, 2017 12:51:36 GMT
I take the view that if SS's and other property loans don't make capital repayments, then my money is *already* reinvested but I'm not an accountant so I've probably missed something ...
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Post by GSV3MIaC on Jan 19, 2017 12:52:00 GMT
You could look at ABLRATE, Moneything, Collateral, to name but three. Depends on what you want to invest in (if not property). MT loans are mostly 'repay at the end', but you can (so far) get out sooner. Personally I find getting some (small) piece of my capital back every 30 days is actually a PITA, since you then have to find something to do with it. If you fancy your chances as a picker of good loans (or plan to buy and flip quite fast) there are options for SME loans, but those are mostly companies I wouldn't want to hold loans to for very long. Only you can decide what risk/reward you are happy with, and how much time/effort you want to put in.
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Post by jackpease on Jan 19, 2017 13:05:20 GMT
Well FC is certainly getting less rewarding but then the alternatives are also getting less rewarding. I am just about making enough money in non-property FC loans.
SS is currently out of fashion, as is Ratesetter. Moneything is current darling - but I've struggled to fund anything new there for at least a month and many of the loans are linked.
I have six figures spread across p2p and have over the past years funded it via my 1% very flexible offset mortgage (aware of dangers with that), but between the reducing rates, reducing availability, increasing risk and tax, I am withdrawing many of my p2p investments and moving it to cut 1% mortgage which is equivalent to a 100% risk-free 1% plus 40% marginal tax ie 1.4%, which may or may not keep up with inflation.
I also believe we are overdue for a property correction and that'd freeze up any of the property based high percentage loan sites eg SS. Or worse lead to some eye watering losses.
Jack P
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Jan 19, 2017 15:03:05 GMT
cut 1% mortgage which is equivalent to a 100% risk-free 1% plus 40% marginal tax ie 1.4% I think that it is 1.67% (i.e. 60% of 1.67 is 1%). I used to love making early payments on my mortgage when it was 5.7%!
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damar
Member of DD Central
Posts: 110
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Post by damar on Jan 31, 2017 21:02:12 GMT
Thanks for all the feedback,
I will go with Hor's suggestion and try the secondary market for a while, to see how that goes.
Happy investing
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Post by anubis on Jan 31, 2017 21:07:57 GMT
Hi everyone, I have been using FC for about two and a half years, and I have been very happy with it, I have had a few losses, but not much as I always try and stick to my £20 max rule. Over the last 4 months I have made very little, as the number of defaults has gone up, obviously I expect to have more defaults the more was invested, but I expected it to be roughly in line with the interest gained. I have some funds in saving stream, the pay a good rate of 12%, however this is only on property so there is no principal repayment. This is where my problem lies, if I leave FC who do I use, I like the FC model with the principal and interest payment, as it generates more monies to reinvest. SO, who else are you good people using instead of, or maybe as well as FC. Thanks
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Post by anubis on Jan 31, 2017 21:10:06 GMT
Where else to go.  / With Banks/Isa/ bonds 0.01% to 3% Max what more do we need to know They are not a " Loss" the are a reduction in return on portfolio (with Tax offset ) Currently £1500 "loss" and £3500 profit offset the *loss" and the £1000 new tax free allowance and returns are good. Norm.
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TitoPuente
Member of DD Central
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Post by TitoPuente on Feb 1, 2017 21:49:56 GMT
I take the view that if SS's and other property loans don't make capital repayments, then my money is *already* reinvested but I'm not an accountant so I've probably missed something ... No, you did not.
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blender
Member of DD Central
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Post by blender on Feb 1, 2017 22:51:26 GMT
There is the interest to invest, but that's not re-invested because you have not invested it before. In other words, I agree.
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