dzo
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Post by dzo on May 21, 2017 16:44:00 GMT
The tax relief on defaults is offset against tax you are paying on P2P income so you don't lose it in an ISA - you get it even when the loan doesn't default. I don't believe that's true, losses inside an ISA aren't allowable against external gains. Happy to be proved wrong though Should work the same as capital gains tax in a Shares ISA, capital losses cannot be offset. That's what I mean. You don't lose anything by having your P2P investment in an ISA because you never pay the initial tax to begin with.
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dzo
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Post by dzo on May 21, 2017 14:39:28 GMT
I've been musing over ISAs for P2P and have come to the conclusion that for some it will not add up. 1) If you are a lower rate earner, you will get 1 k tax free anyway 2) If you are a non tax payer, you will also get your 5k starting allowance 3) If your loan defaults, you miss out on the tax offset against your income 4) As per point 3, if you are a higher rate tax payer, you are missing out of £400 / £1000 defaulted . 3) and 4) will not be available in an ISA 5) ISAs make a lot of sense to me for equities, where the best strategy is buy and hold forever with no messing around, and the risk of total loss with an ETF/Fund is negligible. With equities, tax returns can quickly become a pain the backside trying to work out capital gains, dividends, and buying and selling outside of an ISA to tax harvest gains and losses. These are not so much of an issue with taxable income from P2P. So we will be using our ISAs for equities but will not be investing in any P2P ISAs. The tax relief on defaults is offset against tax you are paying on P2P income so you don't lose it in an ISA - you get it even when the loan doesn't default.
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dzo
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Post by dzo on May 20, 2017 18:40:24 GMT
The people in the comments section don't seem particularly impressed.
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dzo
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Post by dzo on May 18, 2017 17:50:02 GMT
Hi I am at a dilemma, I have been using p2p for several years, not I am thinking longer term where I am better off putting my money into peer to peer platforms, I currently use Growth Street bondmason and get around 6.4% to 7.4% return, I also have a registered account with Moneyfarm that is a stocks and shares isa, no thinking more long term of around 5 years I expect my peer to peer investment to rise around 30% without getting to technical, I understand the risk with peer to peer but would I be better off going down the moneyfarm route? What are your thoughts Thank you The usual advice is to invest for at least 10 years in stocks and shares. They're volatile so you need to wait long enough to "even out" the ups and downs.
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dzo
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FundingSecure (FS) in Administration
New loans 17/5
May 18, 2017 6:03:11 GMT
Post by dzo on May 18, 2017 6:03:11 GMT
Everyone is scrambling for the small loans because they go so fast. People who realise this are buying them to flip on the SM so it makes them even harder to buy on the PM.
At the time of writing there is nothing available at par on the SM. Only the endurance boat at a small discount. Everything else is being sold at a premium. We could probably sell jewellery loans at a 4% premium if it was still allowed.
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dzo
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Post by dzo on May 17, 2017 20:56:10 GMT
First day on the platform and very impressed with it, but things like that bug me. It annoys me every time I deposit. While we're asking for small changes, the submit buttons on the login pages can't be triggered by pressing the enter key.
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dzo
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Post by dzo on May 16, 2017 21:16:44 GMT
Assuming the borrower is getting a better deal at MT (12% to us) than lendy (10% to us) this would be a good argument to show lendy have reduced rates purely to increase their profit margins and "better quality" loans was never a factor. Lendy put 2% into the PF aswell as paying 10%, so the extra isn't profit after all. A good argument against Provision Funds. We're taking a rate cut to bail out people who buy dodgy loans.
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dzo
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Post by dzo on May 16, 2017 17:26:40 GMT
Hi dzo, Generally speaking we will not input into a trade on the marketplace as a buyer and seller are free to agree their own price, but in the case where we can see there will be a loss on the trade (in the case of a fixed return investment) we do get in touch just to confirm that both parties are aware. In this particular case we made both parties aware and they agreed to proceed in any case as the buyer didn't want to back out on their bid and accepted the small loss they would make. It is not possible to bid on your own marketplace office from your own account - this is restricted on Abundance to avoid manipulation of the marketplace or your ISA allowance as you suggest. Tom Thanks for responding. I'm glad people can't trade with themselves. That's something I think other platforms should also implement. Do you have any procedures in place to stop people trading with spouses or other family members?
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dzo
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Post by dzo on May 16, 2017 6:56:55 GMT
abundance As a new abundance investor, I have been browsing the trade history of some SM loans. Some of these trades seem to be happening at suspiciously high premiums. For example someone bought £800 of M***** V***** CHP for £900 on 3rd May. That's a 12.5% premium on a loan that is paying 12% until 31 January 2018. The most this person could ever get back is £896. Could this be similar to recent cases on FS where people have been trading between their own accounts to boost their ISA allowance?
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dzo
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FundingSecure (FS) in Administration
MAY NEWSLETTER
May 14, 2017 17:12:16 GMT
Post by dzo on May 14, 2017 17:12:16 GMT
I've just seen someone sell a loan part for -1.00% while the next cheapest part in the same loan was +0.10%.
Clearly the new restrictions aren't stopping people from gaming the system, but they are preventing legitimate sales at higher premiums.
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dzo
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Post by dzo on May 13, 2017 14:45:44 GMT
I sold my last investment - it was actually quite easy. They send you email offers which you can ignore or respond to. I responded to one which was not far from my target saying add X and it's yours - he immediately agreed and then we both emailed Abu. Remember that the premiums will include accrued interest, and of course with this one both the interest to be paid and the rolled into growth bit of interest. The exchange was the bit I was worried about, but that doesn't sound too bad. I'm guessing premiums go up as a repayment nears?
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dzo
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Post by dzo on May 13, 2017 12:24:46 GMT
They've fixed the repayment calculator now.
The loan is already 15% full. I'm considering buying some more to sell on the SM as the premiums seem good on Abundance. Does anyone here have experience of selling on the SM, and is it as complicated as they make it sound?
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dzo
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Post by dzo on May 12, 2017 16:31:37 GMT
They have another offer opening for BHs. I just took 900 - I like the platform and the detail that they provide, I like the alternative energy bias, but I use them more for a bit of interest (not just the 12%) and diversification. I was very confused until I noticed the lower case s!
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dzo
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Post by dzo on May 12, 2017 16:28:54 GMT
Not looked at it yet but there must be some security surely, otherwise it would make some of Lendys more dodgy loans look attractive. I won't pretend to be an expert on business loans, but my understanding is that they're typically unsecured. Presumably we rank behind secured lenders but ahead of shareholders if the company is wound up.
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dzo
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Post by dzo on May 12, 2017 16:08:42 GMT
Am I just being stupid, or is the return calculator wrong? It seems to be counting the rolled up interest twice.
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