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Post by df on Nov 26, 2017 21:03:57 GMT
One shouldn't expect any detailed updates from FC, it is pawn platform. In bling loan world, you wouldn't update on how piece of metal or precious stone or Rolex watch is developing and progressing towards their completion or refinancing. I have a significant FS investment, but it does require significant oversight and selectivity as, IMHO, there's quite a range of risk involved. As a result of learning this the hard way, I have a number of parts of loans that are rather overdue and where recovery of my investment is uncertain. I'm still ahead at the moment, but I really can't predict where I'll be when all the dust settles. I feel FS's updates are inadequate. When a loan is made, ISTM that it's extremely rare to see an update on that loan/tranche until around its maturity time. What I'd like to know is what progress the borrowers are making toward their exit plans. If the plan includes obtaining PP, have they actually put in an application? What has been the reaction? If the plan is a refinance, are they getting anywhere? If the plan is to sell, where can I see it listed? And is there any interest at that price? I don't get the feeling that FS have much contact with borrowers during a loan's term, and that's why there are no updates. (The exception is development loans where the borrower comes back to FS asking for more funds.) As a result, if problems develop, we don't find out about it as it happens, only after it has happened. Perhaps it's not important, as investors might not do anything differently if there were comprehensive updates. I think the lack of updates makes investors tend towards playing 'pass the parcel', and I don't like the idea that the best way to invest at FS seems to be to find someone to relieve you of your old loan parts. Yes the updates are random and not very informative and often there are no updates for the entire life of the loan. FS is a pawn lender, but because they infiltrated into property market many investors expect them to behave as it would be appropriate in bridging&property development sector. When they say "We do not use the borrowers' credit scores as part of our lending criteria, as we rely on the underlying asset as security", I don't expect any serious updates on performance of the project I'm lending to. Investing with FS is high risk adventure. I'm still ahead at the moment too, but I have a significant proportion of "unredeemed", one of them (Wimbledon) is a definite loss - but that's my own fault investing in 3rd charge security. Some others property loans look like some of the capital will be returned in distant future. Railway toys are slowly repaying... but overall the amount of my funds locked in overdue loans is growing.
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dawn
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Post by dawn on Nov 28, 2017 7:59:26 GMT
I am looking for a different P2P lender to try and was hoping to get an idea of the advantages and disadvantages of FundingSecure over other P2P platforms. What are the main pluses of this platform and, conversely, what are the things to watch out for? I am currently with ABLrate, AssetzCapital, Collateral, Moneything and Lendy (as well as having a LendingCrowd account with only defaults in it and a FundingCircle account that is running down organically (also with defaults but some loans just running down)). FundingSecure seems to be mainly property with some being BTL but does it do other stuff as well and how is it regarding handling of late payments and defaults? Any other useful pluses or minuses would also be gratefully appreciated. Many thanks (in anticipation) edit - there is a niggling thought in my head that I was avoiding FS for a reason and I think it might be to do with how sales and purchases on the secondary market are handled as far as tax reporting - was that this platform or am I getting it muddled with another? Thank you very much to everyone for your comments, suggestions and thoughts. I now have a much clearer idea about FundingSecure and its pro and cons. I will take this information, together with the other research I've been doing, and have a long and careful think about whether to go for this. Like my investments in other platforms and loans I tend to be cautious and check out as much as I can before investing.
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zlb
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Post by zlb on Dec 5, 2017 21:03:36 GMT
edit - there is a niggling thought in my head that I was avoiding FS for a reason and I think it might be to do with how sales and purchases on the secondary market are handled as far as tax reporting - was that this platform or am I getting it muddled with another? If you buy anything on the sm you inherit the tax liability. This factor has put me off.Does that mean that one can get income%, sell the loan, and then have no tax to pay? I presume the tax isn't paid twice. Thanks. (I've tried to quote this using a phone, it may have inserted my comment after your last line break)
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Liz
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Post by Liz on Dec 5, 2017 21:32:57 GMT
If you buy anything on the sm you inherit the tax liability. This factor has put me off.Does that mean that one can get income%, sell the loan, and then have no tax to pay? I presume the tax isn't paid twice. Thanks. (I've tried to quote this using a phone, it may have inserted my comment after your last line break) You are correct. If you are a tax-payer then this can be very useful. You could also buy into an ISA where no tax is paid, or you can just buy on the PM.
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sarahcount
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Post by sarahcount on Dec 5, 2017 21:34:30 GMT
If you buy anything on the sm you inherit the tax liability. This factor has put me off.Does that mean that one can get income%, sell the loan, and then have no tax to pay? I presume the tax isn't paid twice. Thanks. (I've tried to quote this using a phone, it may have inserted my comment after your last line break) Yes if you sell a loan on the SM you will have no tax to pay. The buyer will pay you the accrued interest and be responsible for all the tax. Your challenge is finding a buyer who wants to take on a second hand loan which comes with an extra tax liability. Fortunately these people do exist. I'm one of them and will take loans off your hands if they are ones I like, if the discount offered is generous enough and if I've got available funds in my IFISA. The thing that's putting me off recommending FS at the moment though is the website repeatedly throwing me out before I can make the purchase. Really really annoying.
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duck
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Post by duck on Dec 6, 2017 7:04:11 GMT
.... Your challenge is finding a buyer who wants to take on a second hand loan which comes with an extra tax liability. Fortunately these people do exist. I'm one of them and will take loans off your hands if they are ones I like, if the discount offered is generous enough and if I've got available funds in my IFISA. .... I have a business account that trades solely on the aftermarket and has been since the aftermarket was set loose. Due to the different rules that apply to businesses the 'tax hit' that applies to individuals is not an issue. Obviously the quality of the loan is an important consideration but it is not just ISA holders who buy on the aftermarket. Personally I have always liked the FS aftermarket from both a personal and business point of view and use it's advantages wherever possible.
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markb
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Post by markb on Dec 6, 2017 12:57:22 GMT
Also, as I understand it, a UK individual only avoids income tax by selling on the SM - they become liable for CGT instead, so if they do it enough to exceed the CGT allowance, they'll still have to pay some tax.
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IFISAcava
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Post by IFISAcava on Dec 6, 2017 13:01:12 GMT
Also, as I understand it, a UK individual only avoids income tax by selling on the SM - they become liable for CGT instead, so if they do it enough to exceed the CGT allowance, they'll still have to pay some tax. correct, but a) there is a very hefty annual allowance before any CGT is due and b) CGT is a lot lower than income tax.
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archie
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Post by archie on Dec 6, 2017 13:04:59 GMT
Also, as I understand it, a UK individual only avoids income tax by selling on the SM - they become liable for CGT instead, so if they do it enough to exceed the CGT allowance, they'll still have to pay some tax. See here
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Post by Deleted on Dec 6, 2017 13:50:33 GMT
working out to minimise your tax liabilities is probably the first thing you should do as you develop your investment strategy. TO give a flavour of this I balence out my income tax and EIS/charity contributions so as to pay no income tax, while the CGT £11k limit is far too small there are two rates of capital gains tax it is important to maximise your use of the lower one before the terrible second one.
I see CGT up there with death duties, I paid tax once to get the capital and now the state wants to tax the taxed. Though, to be fair, my frustration with death taxes will not affect me.
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IFISAcava
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Post by IFISAcava on Dec 6, 2017 16:58:54 GMT
working out to minimise your tax liabilities is probably the first thing you should do as you develop your investment strategy. TO give a flavour of this I balence out my income tax and EIS/charity contributions so as to pay no income tax, while the CGT £11k limit is far too small there are two rates of capital gains tax it is important to maximise your use of the lower one before the terrible second one. I see CGT up there with death duties, I paid tax once to get the capital and now the state wants to tax the taxed. Though, to be fair, my frustration with death taxes will not affect me. Most taxes are like that, not just CGT and inheritance tax: VAT, savings, dividends, stamp duty, fuel duties, alcohol duties, council tax etc etc. What matters is having a broad tax base. You have raise tax revenue somehow - if you cut out taxes that "tax the taxed" then income tax will be so huge that no one would work.
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Post by Deleted on Dec 6, 2017 17:41:55 GMT
I generally feel that the tax model is too complicated and it pushes companies and individuals to work against the objectives of the state. The trouble with complicated tax systems is that they drive humans to form groups to protect the complexity while reducing the tax take. I guess I know too many wealthy tax avoidance lawyers. I suspect the opportunity to reduce overall tax is great if we had a simpler system.
On the other hand I'm not against tax or paying it, but I do think you should take it into account before you invest.
I have always been a keen supporter of the idea of having a Department of Un-intended Consequences (DUC) who reviewed the budget before it is published.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Dec 13, 2017 20:11:37 GMT
I am frankly staggered by the support for this platform expressed several times above. It is the only platform where I have made a net loss (losses exceed all time interest.) They were set up and organised to do pawn and moved into property without the necessary expertise. Just read the updates on South Wales Property (1442701959) in chronological order to see what an incompetent shower they are.
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Post by eascogo on Dec 13, 2017 20:31:40 GMT
I am frankly staggered by the support for this platform expressed several times above. It is the only platform where I have made a net loss (losses exceed all time interest.) They were set up and organised to do pawn and moved into property without the necessary expertise. Just read the updates on South Wales Property (1442701959) in chronological order to see what an incompetent shower they are. Just read that. Unbelievable! Years of procrastination. I am in several defaulted loans but not that one. Patience must be wearing thin.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 13, 2017 20:36:44 GMT
" I am very selective on FS BTW.", errrr, you need to be!  |
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