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Post by pmac67 on Feb 12, 2018 22:40:35 GMT
... and claim that 'No investor has ever lost a penny!'... Never heard that one, and I've been with Zopa since 2008. Pretty sure they wouldn't say it (given the 'listings' bloodbath). Safeguard & provision funds in general are basically just an averaging device, they do not give you any real protection in the event of a major economic downturn. If you are sufficiently diversified you are better off without it. (Prior to the tax changes on losses a few years ago, SG was genuinely useful for tax payers, but I've never understood why they kept it going after that point). Am I comfortable with Zopa? Well, in general yes (and recently moved a bunch more money in), but you need to be diversified as much as possible (£10 loans). In the case of Z+ (and the earlier C, D & E markets) ... I've only ever put a small amount of money there. Stayed well away from Listings (available 2007-2011 or so), they were an obvious disaster area with people bidding ridiculously low. Yes my Bad ! It's Ratesetter who make that claim not Zopa....
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Greenwood2
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Post by Greenwood2 on Feb 13, 2018 7:20:16 GMT
One thing I learned from Zopa Listings was that I am useless at picking honest borrowers. Fortunately I didn't put too much money into them, they were a disaster, but rather addictive at the time.  |
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ashtondav
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Post by ashtondav on Feb 13, 2018 10:18:57 GMT
I've been with ZOPA since september 2005. I came out of the 2008 crisis with solid returns, but my problem now is that the rates are just too low - even with my early adopter 1% bonus, and this is compounded by being a higher rate taxpayer. I prefer Ratesetter now, only funding it when i can get 6% on the 5 year market and keeping the powder dry in the rolling market at 3.5%+. I also use ACC Quick access for day to day funds, FundingCircle for when RS rates are below 6%, and FundingSecure as a gamble. All these accounts operated in my wife's name, a lower rate taxpayer.
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benaj
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Post by benaj on Feb 13, 2018 17:10:13 GMT
I've been with ZOPA since september 2005. I came out of the 2008 crisis with solid returns, but my problem now is that the rates are just too low - even with my early adopter 1% bonus, and this is compounded by being a higher rate taxpayer. I prefer Ratesetter now, only funding it when i can get 6% on the 5 year market and keeping the powder dry in the rolling market at 3.5%+. I also use ACC Quick access for day to day funds, FundingCircle for when RS rates are below 6%, and FundingSecure as a gamble. All these accounts operated in my wife's name, a lower rate taxpayer. Marriage is a gamble itself. Belgium divorce rate is 71%. Love you wife and she loves you back, then you don't have to worry about the chance of settlement. www.trendrr.net/8004/countries-with-highest-divorce-rate-world-famous-lowest-india-japan/
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Post by WestonKevTMP on Feb 13, 2018 21:36:22 GMT
One thing I learned from Zopa Listings was that I am useless at picking honest borrowers. Fortunately I didn't put too much money into them, they were a disaster, but rather addictive at the time. The wonderful anecdote (from Inside Zopa), was that the worst borrowers and fraudsters used photos of pretty girls to attract lenders. So if your losses are high from those days, you've only yourself to blame... 😍
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Post by pigbreeder on Feb 14, 2018 23:53:45 GMT
didnt like the sort of borrowers they were lending to ie the reasons they wanted my money, mostly non asset backed
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Post by pigbreeder on Feb 14, 2018 23:58:48 GMT
Assuming the Zopa is right about the default rates under the current economic environment? roughly 5.5% in defaults for the money invested on Zopa plus, are you comfortable with projected return of 5%+ (after the bad debts)? Year to date interest £737 - YTD Defaults £913. Just like Switerland where you are charged to keep money on deposit.Time to run for the hills.
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Post by misotu on Feb 15, 2018 0:27:56 GMT
Given my gender and orientation, I'm immune to the lure of pretty girls. I was fascinated by the Listings, but never lent a penny  |
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Post by elephantrosie on Feb 15, 2018 8:00:47 GMT
Assuming the Zopa is right about the default rates under the current economic environment? roughly 5.5% in defaults for the money invested on Zopa plus, are you comfortable with projected return of 5%+ (after the bad debts)? Year to date interest £737 - YTD Defaults £913. Just like Switerland where you are charged to keep money on deposit.Time to run for the hills. is that your statement
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ashtondav
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Post by ashtondav on Feb 15, 2018 8:58:20 GMT
Assuming the Zopa is right about the default rates under the current economic environment? roughly 5.5% in defaults for the money invested on Zopa plus, are you comfortable with projected return of 5%+ (after the bad debts)? Year to date interest £737 - YTD Defaults £913. Just like Switerland where you are charged to keep money on deposit.Time to run for the hills. Sadly Zopa do not make clear that you need to lend waaaaaaay more than a grand or two to be reasonably sure of securing "expected" returns. I would be interested to hear from anyone with £15,000+ invested who is in a similar position. From memory on the FundingCircle website, for example, you are not maximising your interest rate until you are invested in 500+ loans. I don’t know enough about stats to explain "bad luck", but based on my account and my wife's, account size seems to be important
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Post by pigbreeder on Feb 15, 2018 9:41:26 GMT
5,000 plus loans, mainly £20 or under - thought that would keep be sufficiently diversified. Interestingly defaults in 2015, 2016 were in £10's of pounds. Safeguard may have brought the average return down - I know losses have to to covered somewhere. But it gave one much greater certainty on return and if the loss borne by Zopa rather that by lender I think they were tighter on their lending criteria. What does happen to defaults once they are sent to Zopa Ltd. Debt recovery on FC over the last 4 years 39.5%. Debt recovery on Zopa 1.2%
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ashtondav
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Post by ashtondav on Feb 15, 2018 13:13:06 GMT
About £50k invested, now. January earnings £200, so just about on target given my mix of products.
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aju
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Post by aju on Feb 15, 2018 15:16:13 GMT
About £50k invested, now. January earnings £200, so just about on target given my mix of products. I make that roughly 4.8% but I am assuming that the 50k is a very mature book rather than recent lending to get that %age. Myself and Mrs Aju's more mature Invest side is hitting a similar %ages at the moment but as I say they are both quite mature investments. On our newer ISA sides the defaults are coming in quite quickly now but we still have built quite a bit of interest so far to cover this tax year - hopefully. Clearly the lack of SG cover is having a big effect on the ISA side and having just recently moved 50% of Mrs Aju's SG cover over to the ISA side this may have a more negative bearing until the ISA relend side matures more. This could take quite a while to settle down though. In my case I have a bit more cover from the early adopter funding as well and my SG cover is being transferred as we speak. I think on the ISA side we will need to hold our nerve for at least a couple of years. Anyone who thinks P2P is a quick return might get more of a shock I feel.
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coogaruk
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Post by coogaruk on Feb 15, 2018 18:48:58 GMT
I was fascinated by the Listings, but never lent a penny I tried my hardest at the time to dissuade Zopians from using them but my advice fell on many deaf ears. We must be in a very small club!
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Post by wyndstryke on Feb 15, 2018 18:53:02 GMT
Sadly Zopa do not make clear that you need to lend waaaaaaay more than a grand or two to be reasonably sure of securing "expected" returns. ... Not only that, but you have to lend it a bit at a time. There was the guy about 6 months ago who lent 220k(?) in one go and ended up with 100 huge loan chunks which couldn't be resold via rapid return ...
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