Neil_P2PBlog
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Property Moose
SPV 54
Aug 1, 2016 13:19:25 GMT
Post by Neil_P2PBlog on Aug 1, 2016 13:19:25 GMT
Hi all I thought is was easier just to relay the figures here in relation to the loan. We will add this to the deal page shortly as well. The mortgage is for £160,000 on a capital and interest repayment basis over 25 years at 5.95% above base rate. There is an arrangement fee of c.£4k and early repayment charges in the first 5 years (the reason for the 5 year term). Due to the property being made up of multiple asset types (commercial plus residential), the mortgage is a mix between a standard BTL and a commercial loan and this means the interest rate is higher than that which you would ordinarily see on a standard BTL mortgage. The benefit of repaying capital on the deal was it reduced the interest rate payable and also means there will be greater embedded capital on exit for investors, with a healthy yield in the meantime. Hope that helps. Andrew Thanks for the update Andrew. Is this interest tax deductable against the rental income? Why not crowdfund the mortgage? 6.45% income is not bad on a transparent 50% LTV
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 31, 2016 22:15:49 GMT
Hey everyone, I've thought of an interesting discussion that perhaps can be had here in the forums. My background is that I come from a family that has rented all their lives, I have an apprenticeship and am earning a minimum wage. Perhaps there are others here that have had similar backgrounds, or have been bought up very differently, and have learnt the principle from an early age that money works for you and that you don't work for money. There are obviously many strategies and ways of making the money work for you in P2P lending. And many people here have started with little money, and perhaps many others with large amounts of money. Many have found success and perhaps failures. Yet each have the intent of creating wealth for better lives for themselves and their families and what have you. Some may view investing as a competition or some may see this as a necessity. Whatever it may be. I and I'm sure many others are keen and interested in learning from those that have wealth and gain wisdom or from those that are currently in that moment of becoming wealthy. What strategies they can start applying in investing in P2P lending with Ratesetter. So what strategies have worked for you? An example: Let's say I have $2000 that I am able to invest. Where should I start? Should I divide the money and put it into different parts? Or at different times? What are the most successful ways that you have experienced in generating wealth in a well paced manner? Hopefully you all understand where I'm coming from and where I'm going with. Any advice and discussion would be greatly appreciated. Many thanks. To add: If you feel that it can't really be taught and that you just have to learn from experience...Please expound. I would look carefully at the exit options on each platform, and not put all my money into just one. For example, say in 2 years time you want to take that money out of ratesetter to put into a deposit for a house, ratesetter has a complicated early exit fee on their higher paying products (see other threads). If you put £1k in a platform like landbay, you can get about 4% interest and another 5% from the cashback (£50) with no exit fees.
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Neil_P2PBlog
P2P Blogger
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Posts: 355
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Post by Neil_P2PBlog on Jul 31, 2016 21:56:04 GMT
I've highlighted where you use the phrase "easy access" Neil_P2PBlog as I personally think this is a little unfair on Zopa as far as I'm aware they never call it that, they just use the word Access. You are right, on the page where you select loans they do not use the phrase 'easy access' but just access. I had to look again as I had thought they'd described it as that. Nevertheless, on a number of reviews I read before (that I think come from the same press release), or even on their own blog, they call it 'easy access'. blog.zopa.com/2016/02/17/introducing-our-new-lender-products/"Zopa Access (3-4%) – Safeguard lending with fee free easy access" Edit: Update - after some research it appears this is all because the remaining loans are repaying these days, and not any problem with Zopa
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 30, 2016 16:38:25 GMT
I just tried selling out 2k from Zopa easy access - it is definitely not 'easy access'. It only let me request to sell about £600 of loans and several hours later is still at £0 sold. Will have to wait and see. I suspect they only process stuff during normal business hours so Friday night is probably the worst possible time to try it I hope that is the case, rather than the remaining loans being caught out in longer term repayment complications. Today it has sold that first £600 but does not let me sell any more. I think a typical user of the easy access zopa account is someone just getting started in P2P, not wishing to commit their funds to a long term and sticking with the most established name. In my experience, other platforms that do not claim to be easy access are easier to sell even if it means a small charge or via secondary market.
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 29, 2016 21:55:34 GMT
My new thoughts Bondmason and Bridgecrowd. Zopa Easy access 3.5% no fee for withdrawal. Classic 4.3% 1% fee for withdrawal Both protected or Zopa Plus 6.7 %, 1% fee for withdrawal no protection. Maybe I will check Zopa out again... 6.7% isn't bad and if I keep my money in there for 1 year instead of the 5 they want I would effectively get a rate of 5.7% upon selling; if I need to sell that is.
Begs the question though... what is the point of the Classic if I can put it in the Plus and sell at the same rate? Doesn't seem right...
I just tried selling out 2k from Zopa easy access - it is definitely not 'easy access'. It only let me request to sell about £600 of loans and several hours later is still at £0 sold. Will have to wait and see.
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 29, 2016 14:43:58 GMT
I'm in a similar situation, only one loan each on both of my accounts so far this week, over £1400 sat idle in one, but only £200 in the other, although if I am to understand stevefindlay correctly, they are working on a fix for this. Cash drag is likely to remain BM's long-term problem. Can we investors expect quick investment when we dump lump sums into their laps but demand a high level of security at the same time. It has been suggested that the stated headline rate should be adjusted down to take account of the 1% fee. I support that. In the interest of honesty one could perhaps go further and also request that the headline rate be adjusted to account for cash drag. Ouch! That may be difficult if the fee is post-tax, just subtracting 1% would be missleading for those that pay higher tax on the ~8% earnings
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
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Property Moose
SPV 54
Jul 29, 2016 14:38:10 GMT
Post by Neil_P2PBlog on Jul 29, 2016 14:38:10 GMT
Seems good - high rental yields, good location, bought at 13% discount to market value, leverage payments on 50% well covered by rent.
Am I missing the downside?
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 28, 2016 17:35:37 GMT
Email from Ablrate today - MTF are back looking for £250-500k, same terms - 2 years, 12%. Live at 7pm. There's over £4k on the SM at 100% of the existing one, could be a bit harder to shift this time. Does interest start accruing on the new loans from the day you invest?
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 27, 2016 19:58:52 GMT
markm Thank you very much for this question, there are two ways to answer this, as we are realising a major upgrade to this aspect of the platform in the coming week(s) - the coding is now under final testing and review. How it currently worksYou have it exactly right - the 1% or 2% impacts how long before you are initially invested. 1% takes c.+50% longer than 2% to get fully allocated. Then, if you switch from 2% to 1%, you are correct - you need for the existing 2% positions to be repaid before you then invest in 2 x 1% positions. How it will work in the future (August 2016 onwards)(Without giving away too much specific IP) - Smaller incoming clients (i.e less than £10,000) will be allocated loans much faster, without too much of a distinction in their alloation speed if they are at 2% or 1% (i.e. a couple of days difference) - Some of these loans will come from existing clients that are fully allocated, and moving down the scale from 2% to 1% to 0.5% etc. This will speed up the diversification of the existing clients - So this is a win-win for both incoming and existing clients. We are starting with the current settings of 2% and 1%, but may quickly introduce (i) 0.5% and/or (ii) an absolute which each client sets - i.e. £200 per investment. I hope this helps - please ask if it is still unclear. Thanks, Steve Future plans sound really interesting Steve. But, could that mean that smaller investors end up with older loans closer to their end of term (i.e. potentially higher risk of default)?
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Neil_P2PBlog
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Post by Neil_P2PBlog on Jul 27, 2016 14:36:43 GMT
Hi I am interested in opening an account with BM but have a couple of questions if anyone would be so kind to help with. 1. What is the quickest way to deposit money into the account? Bank transfer very quick.2. If I put 2k into my account how long will it take to be lent out? BM would say up to 1 month. My experience is my first £1K deposit was loaned out just over a week. My second £1K deposit is moving slowly; not sure why.3. Will BM diversify my money for me? Yes they will; across a number of P2P sites (you can choose loan size to be either 1% or 2% of your total investment; the smaller the %, the bigger the diversification)4. If I have invested money but require it is there a cash out option and what are the fees? Yes, may take up to a month to get all your money out and unless you are a "gamer"/day trader then BM say there will not be a charge.5. How often are repayments made back? Is it on the same day each month or weekly? It seems that you accrue your interest throughout the month, not quite sure how this works.Thank you Keith My first £1k is about 30% invested in just over a week. I imagine this is due to a large demand from new users - checking 3rd party estimates their website views are up from around 1,500 per month to 10,500 in June.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
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Post by Neil_P2PBlog on Jul 27, 2016 0:40:25 GMT
It was an old email that I just use for spam risky websites - anyway deleted it just in case!
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
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Post by Neil_P2PBlog on Jul 26, 2016 20:12:14 GMT
They seem to be very proud of their new tennants in SPV 10 County Durham, mixed commercial unit and flat: 1) Commercial = 541 / month 2) Flat = 411/ month 3) Combined = 952 /month, 11424 Purchase cost = 186,000 Gross yield now a pathetic 6,14% Projected net yield 8.14% at purchase. Wish I had never come across this lot, and I have invested a lot with them now so it's too late for me until the properties are sold. Really fed up and wish I had just stuck everything into property partner. Hopefully secondary market will not be too long.. :-)
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
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MoneyThing (MT) in Administration
AE497
Jul 26, 2016 15:28:44 GMT
Post by Neil_P2PBlog on Jul 26, 2016 15:28:44 GMT
Where is the news section on the website? I just see Home, Loans,..., FAQ, Contact Top of the main homepage (click on the MoneyThing.com logo top-left if you're logged in) Cheers!
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Neil_P2PBlog
P2P Blogger
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Posts: 355
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MoneyThing (MT) in Administration
AE497
Jul 26, 2016 15:11:58 GMT
elliotn likes this
Post by Neil_P2PBlog on Jul 26, 2016 15:11:58 GMT
I'm new to MoneyThing and have invested in some of the loans, I'm liking the platform so far and would like to diversify onto MT more. I am finding that there isn't as much information on the loans as other platforms but this could be because there isn't anything more. With this one however, I don't fully understand what this investment actually is. Can someone simplify what they are doing with the money and why? What is the exit strategy? I appreciate this may be a stupid question (maybe it's the whiskey from last night) but I can't get my head around it...! Thanks! Morning wickedxuk. You might wish to have a look at our 'Spring' newsletter (under our News section on the website), which gives a bit more information about the borrower. Kind regards, Ed. Where is the news section on the website? I just see Home, Loans,..., FAQ, Contact
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