adrian77
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Post by adrian77 on May 1, 2019 16:12:48 GMT
Exactly - yes I am pleased FS have stood behind this one - I am not so pleased we were told it was underwritten for 6 months and nearly a year later we are hoping we will soon be repaid
- this is not complaining about not getting rich quickly. Compared to my art loans I will be very happy when I get my money and interest back.
Speaking of proof of losing money - as yet I have none but if I take my interest earned over 3 years and compare it to my defaulted loans the ratio under 1:2 (interest/defaulted) Thus in order to make a profit I will need a recovery of over 50% and considering I have 6 art loans and a couple of other disasters I am not convinced I will achieve this. 3 years investing to earn or lose a little - give me a break!
I suspect my result is typical?
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arby
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Post by arby on May 1, 2019 16:14:58 GMT
Exactly - yes I am pleased FS have stood behind this one - I am not so pleased we were told it was underwritten for 6 months and nearly a year later we are hoping we will soon be repaid - this is not complaining about not getting rich quickly. Compared to my art loans I will be very happy when I get my money and interest back. Speaking of proof of losing money - as yet I have none but if I take my interest earned over 3 years and compare it to my defaulted loans the ratio under 1:2 (interest/defaulted) Thus in order to make a profit I will need a recovery of over 50% and considering I have 6 art loans and a couple of other disasters I am not convinced I will achieve this. 3 years investing to earn or lose a little - give me a break! I suspect my result is typical? You've said before that over 50% of your outstanding loans are in this land rover loan. So if it actually repays then you've made money even if all other loans are 100% losses. I'm sure you're not retiring on the proceeds though! 
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iRobot
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Post by iRobot on May 1, 2019 17:30:41 GMT
fair point- and I forgot buyer's premium at 10% but if this lender had a friend buy the vehicle and had invested the £35K he borrowed in FS earning 13%...my point is that I don't understand why the FS valuation was so much above the trade book price. Borrowed money from FS at, what, 20% to reinvest in FS at 13%? You may wish to revisit your logic there! As for 'trade book price', some observations: # The £50k valuation was initially made back in 2015, two years prior to the last loan issue and 3.5 yrs earlier than the quoted 'trade valuation' # afaik, FS never stated that this was a trade valuation. (They never stated it was a forecourt valuation either, but there you go.) # An inferred trade valuation could have been taken by the (initial) commitment of the underwriter who was prepared to cover 'a price equal to the capital plus 6 months interest'. That would (taking a nice round 20% interest rate to cover fees) equate to the underwriter being happy to pony up £38.5k # The last point might explain why 3+ years later, the underwriter decided to - shall we say - not pursue that option. What might have offered a reasonable return back in 2015, probably didn't seem quite so viable in 2019, especially as... # this is a diesel and the floor has dropped out of the diesel market in recent years. FS are probably guilty of being a bit naive over the viability of their underwriter's pledge - especially as the renewals count racked up; but they've honoured their published commitment (IMO, never in doubt given the comparatively small sum involved) and I, for one, will be sad to see this 'guaranteed' 8% earner go having been in from day 1.
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iRobot
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Post by iRobot on May 1, 2019 18:10:24 GMT
Then why not state the loans as open ended then there is no misapprehension. I've been with FS a good long while, and have a very relaxed attitude to my investments with them (and in P2P generally) but even I wouldn't entertain a platform who's repayment structure meant interest was rolled up and paid at term, when that term was quoted as 'open ended'!  (I'd agree there's a place on the stats page for % of loans that run more than, say, 30 days over term and similarly time-related reporting.)
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adrian77
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Post by adrian77 on May 2, 2019 9:10:46 GMT
absolutely - and my strategy is to validate the P2P loan book performance before ploughing serious sums any of their loans. In the case of FS I currently have the odd fun punt and that's it until I see a big improvement in their loan returns - not least until we see what happens with the art loans.
I haven't got £0.5m cash and if I had FS is the LAST place I would put it. Tell you what I would do with such a sum - track the FS property loans that go belly-up and buy them at bargain basement prices - I think we have seen some very smart developers already do this - not least the chap or chappesse who bought Whitehaven. Even if the property market turns down then the property still retains some value in the short term - hopefully unlike my art and a few other loans which look like a 100% loss to me...just my opinion.
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iRobot
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Post by iRobot on May 2, 2019 13:45:26 GMT
It is difficult to not pay tax on large profits elsewhere that one thing alone greatly enhances the effective return and makes FS viable even after the as yet small confirmed losses. Is there not a Capital Gains tax implication as a result of your strategy? Going by the FS' advisory': " If you buy and then resell the same loan part you may be liable for capital gains tax."
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on May 2, 2019 21:43:26 GMT
It is difficult to not pay tax on large profits elsewhere that one thing alone greatly enhances the effective return and makes FS viable even after the as yet small confirmed losses. Is there not a Capital Gains tax implication as a result of your strategy? Going by the FS' advisory': " If you buy and then resell the same loan part you may be liable for capital gains tax." GGT not payable in FISA
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adrian77
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Post by adrian77 on May 3, 2019 8:41:08 GMT
The former VW chairman MW is facing numerous criminal charges in Germany, the EU have fined VW €1billion , the USA $4.3billion - so lying is good for business?
Am I convinced numerous claims about their returns made by some forum members are exactly honest - answers on a digital postcard
The Quakers such as Cadbury did alright by being ethical - just a thought.
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travolta
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Post by travolta on May 3, 2019 9:25:28 GMT
The former VW chairman MW is facing numerous criminal charges in Germany, the EU have fined VW €1billion , the USA $4.3billion - so lying is good for business? Am I convinced numerous claims about their returns made by some forum members are exactly honest - answers on a digital postcard The Quakers such as Cadbury did alright by being ethical - just a thought. Their choc is rubbish since the ethical lot sold it on to.....Kraft? I think.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on May 3, 2019 10:31:44 GMT
The former VW chairman MW is facing numerous criminal charges in Germany, the EU have fined VW €1billion , the USA $4.3billion - so lying is good for business? Am I convinced numerous claims about their returns made by some forum members are exactly honest - answers on a digital postcard The Quakers such as Cadbury did alright by being ethical - just a thought. Their choc is rubbish since the ethical lot sold it on to.....Kraft? I think. Exactly on point again. Kraft just lost a case in Australia for trying to con consumers with claims about their peanut butter.
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09dolphin
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Post by 09dolphin on May 3, 2019 16:22:30 GMT
Hey people
Please loose the attitude. It's really not very nice and seems to me to be totally unnecessary.
I'm just glad I'm going to get back my measly £100 back with interest.
Only another 9 or 10 loans to go.
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Post by df on May 3, 2019 20:38:51 GMT
This thread is becoming to look like a play/battle ground for pro/anti FS arguments and has a potential for being flooded by personal attacks. Please hold your guns and don't force admin team to have more issues on their plate  |
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adrian77
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Post by adrian77 on May 4, 2019 9:18:32 GMT
absolutely - anybody any idea what happened with the Park Homes recently put to auction and closed yesterday?
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Post by gullible on May 22, 2019 17:54:29 GMT
Whats the hold up???
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rookey123
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Post by rookey123 on May 23, 2019 21:16:49 GMT
I asked and apparently waiting for funds to be released by the auction house. I have personally never experienced that kind of delay but it is FS so give it a couple of months!
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