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Post by badboyyardy on Jan 23, 2018 10:19:54 GMT
So my registration 6 months ago - finally got a reply saying registration now open for me. Is Zopa still relevant? As a jaded P2P investor where I actually have control - SM markets to resell to etc.
As I under it only 2 rates 4% and 4.6% neither guaranteed?
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p2pclive
Blockchain specialist
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Post by p2pclive on Jan 23, 2018 10:28:59 GMT
This seems like a desperate move on Zopa's part. The last gasp of a dying company.
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Post by wyndstryke on Jan 23, 2018 10:51:16 GMT
... Is Zopa still relevant? As a jaded P2P investor where I actually have control - SM markets to resell to etc. As I under it only 2 rates 4% and 4.6% neither guaranteed? Yes. You don't get a lot of control any more. Back when I started (2008) you had to micromanage on a daily basis, but now you basically just put your money in and don't touch it. My advice would be to stick to 'core' and avoid 'plus' (higher risk). There is a secondary market - typically you can sell 95% of your holding at any given time, it'll take two or 3 weeks. You can't sell loans which are within a few days of a monthly payment, or are in trouble. There is a 1% fee for doing this. My usual technique is simply to turn off relending, and pull out the cash once it gets paid back - that way there's no fee, but it takes a lot longer. Yes, usually the actual rate is a bit above the predicted, but it does depend on your diversification and the overall economy. I would recommend transfers no larger than 1990 at a time, this will give you the best diversification (£10 chunks) at the cost of a longer time to get your money active. If you put in a large amount all at the same time you'll end up with huge chunks and at the mercy of luck. Additionally, if your chunks are too large, the secondary market will be extremely slow at selling them. One more point - zopa only make sense for longer term investors. If you want to pull your money out within months you'll probably end up nursing a loss due to the 1% fee.
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benaj
Member of DD Central
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Post by benaj on Jan 23, 2018 11:10:14 GMT
So my registration 6 months ago - finally got a reply saying registration now open for me. Is Zopa still relevant? As a jaded P2P investor where I actually have control - SM markets to resell to etc. As I under it only 2 rates 4% and 4.6% neither guaranteed? Zopa is still relevant, one of the biggest p2p platform for unsecured personal loan, it matched £480m of loans in 2016, and lend money at competitive rates like high Street banks. Regarding control, it does not have an app for management, everything is done with a Web browser, it's up to you to decide how much money to invest with Zopa, you can withdraw the money anytime in the holding account, and choosing product between the core and the plus. When you need to access money, it can sell the loan under zopa t&c. Zopa will match the loan sales to other investor using their algorithm. Like other p2p platforms, there are risks when investing p2p, no rates are guaranteed. The projected rates are based on reinvestment under current economic conditions. There are no provision fund for Core and Plus. 4% for the core seems achieveable.
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Post by BrianC on Jan 25, 2018 18:45:17 GMT
Is Zopa still relevant?
No! Low rates, high defaults, poor choices, slow to sell out etc etc.
I invest with Zopa, RS, and AC. Over the past 9 months I have LOST money overall with Zopa. Over last 12 months slightly up but Plus shows no sign of reversing its dire trend so by financial year end I’ll be negative in Zopa. Fantastic! Meanwhile I’m achieving 5.5% average in RS and >7% in AC.
Maybe I got unlucky by investing heavily in Plus from the start but I still blame Zopa for selling a product that claimed 11% returns (6.5% after losses) but then returning a loss overall. I diversified well by investing £100-£200 on a daily basis over 3 months. So small chunks, well diversified but quickly heading towards large losses for this financial year. Zopa has no future for me and I see no reason why anyone should trust them with their hard earned!
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Post by steamer on May 1, 2018 9:26:20 GMT
I agree with Brian C. Low rates, high defaults, poor choices. I don't want control I want it done for me by somebody who understands the business.
I had £10k in Zopa which I had drip fed in starting in 2012 and was getting a reasonable return till this last year.
2016/17 tax year I lost 15.3% of my interest as irrecoverable debt which was a return of about 6% however
2017/18 tax year I lost 55.6% of my interest as irrecoverable debt down to 4% return
Better return than inflation but suggestive of a problem so I have stopped reinvesting and am removing my cash from the Holding account rather than trying to sell.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 706
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Post by coogaruk on May 1, 2018 18:12:56 GMT
Zopa hasn't been relevant to me for 3-4 years now.
Funding Circle is already well down the same road by now and RateSetter although lagging behind the aformentioned two seems intent on following suit.
P2P is beginning to unravel for the consumer it was originally set up to help. Others might say it has 'matured' or 'become more mainstream'. IMO though Its glory days are over unless you're a corporate or institutional investor and I predict that within another 2-3 years we'll all be left wondering what the fuss was about. sad really.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 1, 2018 19:04:49 GMT
Absolutely, couldn't agree MORE coogaruk! 
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Greenwood2
Member of DD Central
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Post by Greenwood2 on May 1, 2018 19:43:42 GMT
Over the years my Zopa income has exceeded bank account interest which is what I was looking at, not 12% but a decent return.
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Post by davee39 on May 1, 2018 20:00:09 GMT
Zopa and RS have been unable to create a profitable business model, possibly due to the long period of low interest rates & BOE actions to give competitor banks virtually free money to lend out.
Risk with Zopa is far too high for the current paltry rates. RS might look better, but has struggled to rebuild provision fund cover, I suspect the latest changes to the rolling market reflect continuing problems. I am pulling out of both. My only continuing platform is Assets, restricted to the instant & 30 day accounts.
P2P has provided good returns, but I suspect it will be severely tested in the next recession.
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angrysaveruk
Member of DD Central
Say No To T.D.S
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Post by angrysaveruk on May 2, 2018 8:30:42 GMT
I have also made a decent return with Zopa over the years but it is one of the platforms I am running down. I think the only future for P2P is secured business/bridging loans like AC, not personal loans. As pointed out the banks basically are lent money at 0% interest from the government. so there is very little point being a saver or lender, the only way you can make a return now is as an investor/borrower. As much as I like having cash (because of the freedom it gives me), and although I have made a fairly decent return as a saver despite the terrible interest rates, I am getting out of it.
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