rocky1
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Post by rocky1 on Mar 14, 2018 6:50:12 GMT
are LENDY on the same planet as the rest of us how the heck do they think they will fill this have a look at what is available from all the latest loans that have gone live there are hundreds of thousands up for grabs.LENDY cannot fill loans now for even £200k with the amount of people now lending.maybe 20000 registered but only hundreds actually lending.2% of your own money back 100% grief further down the line.
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SteveT
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Post by SteveT on Mar 14, 2018 7:43:33 GMT
It may take a while to fill completely, but I doubt Lendy will have too much trouble filling this new PBL. Whether they manage to fill DFL tranches offered at the same time is another question altogether.
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mary
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Post by mary on Mar 14, 2018 7:49:31 GMT
The last several new tranches offered all only attracted fewer than 300 investors. The last new DFL, which was DFL033 and to the same ultimate borrower as this one, got less than 2000, so it will be interesting to see if this get anywhere near the £5m required.
As the borrower already has many Lendy loans (DFL003, DFL006, DFL013, DFL020, DFL022 and DFL033), I cannot justify increasing my exposure to this borrower.
Edit - and personally I would like him to concentrate on finishing those already started than expanding further!
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rocky1
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Post by rocky1 on Mar 14, 2018 8:24:29 GMT
It may take a while to fill completely, but I doubt Lendy will have too much trouble filling this new PBL. Whether they manage to fill DFL tranches offered at the same time is another question altogether. just looked again at borrower and loan details and any money raised on this loan will no doubt be rolled over by LENDY into the DFL tranches that this borrower is ultimately hoping to get from LENDY.this is a DFL loan disguised as a PBL and time will only tell as it comes near to a end when the LENDY BS starts rolling out
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gustapher
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Post by gustapher on Mar 14, 2018 8:53:29 GMT
As of now I'll be passing on this one too. My issues are: 1) Location. I know Cardiff well and it is too far from Cardiff University. I spoke to my business partner who is an architect in Cardiff and he said: - Location for University of South Wales is good but agreed it was no good for Cardiff Uni of the Metropolitan Uni.
- He said that whole area is ear-marked for redevelopment and some building work has already started
- There is a new massive uni building near the location and another one scheduled to be built
- "Word on the street" was that Cardiff purpose built student accommodation is nearing saturation point (he said DFL006 was ok because of lack of competition in that area)
- Even if they are unable to sell as student accommodation, as long as build completes there will be long-term demand in the area for that property - almost certainly as a change of use to a hotel which he felt was the next potential "bubble" in construction in the area.
Not as bad as my first instinct but definitely worse than DFL006 on paper at least. Bottom line is there are lots of much better locations for purpose built student blocks already being developed so this relies on continued overseas demand.
2) Valuation. Mentions an undersupply of student accommodation but I disagree with method used to calculate this. - It states "Cardiff has an undersupply of Student accommodation with only 21% provision of bed spaces to full time students."
- It rationalises this statistic by saying there are 51,000 full time students, 14000 purpose built student accommodation beds and only 3000 more in the pipeline.
- This makes the false assumption that all full time students will want to live in purpose built accommodation - some will live at home, some will prefer houses.
- As per posts on DFL006 the rents payable at £600-£800 pcm compare with £300-£350 in an HMO house. The students paying these rates are mainly going to be from overseas.
- There is no way when there is alternative accommodation of comparable quality at half price that all students will want to live in these blocks.
- Already we have seen student developments in Cardiff in poor locations change use due to lack of demand.
- More importantly some of the comparable yields mentioned on similar blocks are based on "guaranteed yields" and are therefore not reflective of exposure to true market forces.
I don't think this is deliberately misleading just highly positive spin - this is a sales pitch essentially. The whole thing is reliant on overseas demand both in terms of students using the blocks and investors buying them. I'm not convinced it is a "mainstream asset class" amongst UK investors but I could be wrong. If you are comfortable buying and holding to term it may be worth a punt, but for me there are plenty of other better opportunities currently on the SM. Don't invest based purely on 2% cashback and nothing else. |
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lobster
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Post by lobster on Mar 14, 2018 11:04:11 GMT
Just trying to get my head around this - as I understand it from the loan details, anyone holding this loan at the end of the month ie 31st March , will get a bonus equal to 2% of their investment. Is that right ?
If so, I would predict a flood of selling , commencing literally on the the stroke of midnight on 31st March from all those wanting to "take the money and run" . With a 5.2m loan, this has the potential to turn ugly imo.
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webwizard
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Post by webwizard on Mar 14, 2018 11:13:32 GMT
Just trying to get my head around this - as I understand it from the loan details, anyone holding this loan at the end of the month ie 31st March , will get a bonus equal to 2% of their investment. Is that right ? If so, I would predict a flood of selling , commencing literally on the the stroke of midnight on 31st March from all those wanting to "take the money and run" . With a 5.2m loan, this has the potential to turn ugly imo. Of course if there is a remaining amount on the SM, that will be sold in priority, so with such a loan, there is a very good chance that you will be unable to sell on 1 April and gain the bonus and run. Furthermore, given the state of the market at present, you might still be trying to sell your stake for the duration of the loan as the full loan amount may not sell out entirely before the next tranche gets released and then that takes priority... and so on. I, personally only invest in something that I could hold to maturation.
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sj
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Post by sj on Mar 14, 2018 11:39:20 GMT
Just trying to get my head around this - as I understand it from the loan details, anyone holding this loan at the end of the month ie 31st March , will get a bonus equal to 2% of their investment. Is that right ? If so, I would predict a flood of selling , commencing literally on the the stroke of midnight on 31st March from all those wanting to "take the money and run" . With a 5.2m loan, this has the potential to turn ugly imo. Well yes, we've seen the exact same thing happen multiple times on COL and MT, clogging the SM with a significant amount of loan that not many people really want when there's no cashback on offer. And that has always been with MUCH smaller loans, and dare I say it better quality loans than this particular one. I predict that we'll see the biggest SM queue EVER once cashback is paid out.
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bugs4me
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Post by bugs4me on Mar 14, 2018 11:43:08 GMT
Well yes, we've seen the exact same thing happen multiple times on COL and MT, clogging the SM with a significant amount of loan that not many people really want when there's no cashback on offer. And that has always been with MUCH smaller loans, and dare I say it better quality loans than this particular one. I predict that we'll see the biggest SM queue EVER once cashback is paid out. So the CB pays for itself as once the unwanted loans hit the SM and just sit there, then the interest to the investors stops. A win win for LY again.
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Liz
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Post by Liz on Mar 14, 2018 13:19:55 GMT
Maybe Mr. "I'm richer than you" will underwrite the loan.
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rocky1
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Post by rocky1 on Mar 14, 2018 13:33:19 GMT
Maybe Mr. "I'm richer than you" will underwrite the loan. now now come on LIZ dont bloomin start him off again i am sure we will all know how uneducated we are before the day is out 
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rocky1
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Post by rocky1 on Mar 14, 2018 14:55:16 GMT
cannot see this £5.2 million happening first 2 gone live today and plenty straight on the SM barely 300 investors probably less as people diversify with a little bit in each.
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rrrupert
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Post by rrrupert on Mar 14, 2018 15:16:06 GMT
The tranche of DFL010 that just went live pays 13% and it only had a takeup of 60k out of 340k. I agree with the above poster...I cannot see the 5.2m being filled anytime soon even if it is launched today.
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lobster
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Post by lobster on Mar 14, 2018 15:27:52 GMT
If Lendy can't get this loan fully subscribed with a chunky 2% cashback, then I suggest that they cancel the loan altogether, for the health of the platform. Mind you , they will probably take the opposite view, as they probably stand to make a good wad themselves on a 5.2m loan ,even with the cashback, which the borrower may well be paying for anyway, so they'll get this loan onto their books if they possibly can. A common trick that they employ is NOT to dump the whole of the unsold amount onto the SM in one hit , but to let it go in phases to kid their punters investors into thinking the loan is more popular than it actually is.
I'm afraid I've lost faith in this bunch and would rather invest in chocolate teapots. To be fair though, I may reconsider if we see a few decent sized repayments soon.
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mary
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Post by mary on Mar 14, 2018 18:44:02 GMT
Now live, only 20% taken, £4m onto the SM.
Unlikely even the much delayed £2m partial repayment from DFL05 could help, if it ever appears?
How long will Lendy wait before forced to pull it? Uncharted territory.
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