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Post by markaldrich on Sept 16, 2018 7:16:39 GMT
The IPO news must be good news for the P2P arena as another step to greater credibility for the sector. I used to invest maybe 4 or 5 years ago and I’m tempted to return as I increase my P2P investment overall and look for greater diversity. I know some of the fun has gone from the old self service model but I’d appreciate any feedback on quality of the debt book and returns from those with more recent experience. I suspect I’m relatively cautious so return at or around 6% would be fine - damn site better than my stock market investments at the moment. Cheers
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agent69
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Post by agent69 on Sept 16, 2018 8:09:36 GMT
another step to greater credibility for the sector. Given the current level of credibility of many platforms, the term ' greater credibility' may not count for a lot.
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kaya
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Post by kaya on Sept 16, 2018 8:26:52 GMT
You might look at Lending Crowd, still with a traditional auction model (so even a little bit of 'fun'), and currently offering a 5% top-up on £2000/£5000/£10000 investment. Recent performance seems reasonably I gather.
Don't know anything of recent performance at FC.
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Post by markaldrich on Sept 16, 2018 8:29:24 GMT
Thanks yes have a little with LC but platform risk due to its size worries me a little more
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michaelc
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Post by michaelc on Sept 16, 2018 11:09:29 GMT
Hopefully it worked I added my current position at FC. The 3.5% return seems to go down ever time I login (a year ago it was showing 9 ish percent). To be fair its probably due to me cashing out all the loans I could and leaving the under performing ones but neverthless my understanding is that this 3.5% is the rate I've received per annum for all 5+ years I've been in FC. At the current rate, this 3.5 is on track to turn negative by the end of the year ! Attachments:
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Post by Ace on Sept 16, 2018 15:06:25 GMT
That's a bit worrying. I'd be tempted to pull out now and reinvest somewhere else if I thought my return would drop to an annualised 3.5% once I decided to cash out. Hopefully your annualised return will rise as recoveries are received from defaulted loans.
Can anyone else comment on whether this is a common scenario? And, whether the annualised rate does tend to recover to somewhere near the advertised rates once recoveries arrive?
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ashtondav
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Post by ashtondav on Sept 16, 2018 15:22:48 GMT
If you’ve been selling you are left with all the  that can’t be sold, obviously!. If you were only active for a few months your returns will be abnormal. You will only see average returns if you invest in probably 600 to 800 loans, for at least five years, reinvest repayments and certainly not selling anything. Otherwise all bets are off. After one year following that kind of investment my “quoted” post bad debt return (equivalent to your 3.5%) on the dashboard is 6.7%. I do realise the dashboard potentially over estimates returns. |
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Post by Proptechfish on Sept 16, 2018 15:49:14 GMT
I've been with FC approaching 2 years, other than a couple of minor 'test' withdrawals early days i have deposited only. May dashboard 'Estimated return (after fees and bad debts)' is 7.0%. My actual annual return is currently 8.14% based on cumulative monthly gains. I only have one downgraded/unsellable loan. I must have been very lucky.
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Post by markaldrich on Sept 16, 2018 15:51:54 GMT
I agree with the comment that if you pull out the good stuff it’s not surprising you are fairing badly. More interested in experience like the last comment ie where sums left in for a decent period. Thanks for your help so far.
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Post by davee39 on Sept 16, 2018 15:55:32 GMT
I am not authorized to give financial advice.
As medical advice I suggest you take two paracetamol and sit in a darkened room with a wet towel round your head and wait for the temptation to go away.
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benaj
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Post by benaj on Sept 16, 2018 16:20:11 GMT
I suspect I’m relatively cautious so return at or around 6% would be fine Better still, if you have a friend, grab the £100 to share www.fundingcircle.com/offers
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benaj
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Post by benaj on Sept 16, 2018 16:24:53 GMT
That's a bit worrying. I'd be tempted to pull out now and reinvest somewhere else if I thought my return would drop to an annualised 3.5% once I decided to cash out. Hopefully your annualised return will rise as recoveries are received from defaulted loans. Can anyone else comment on whether this is a common scenario? And, whether the annualised rate does tend to recover to somewhere near the advertised rates once recoveries arrive? I don't think 3.5% is a common scenario with autobid only loans. My partner's 6 years old account annualised return (after fee and bad debt) is 6.6%, my 9 months old account is 7.5%
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michaelc
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Post by michaelc on Sept 16, 2018 17:39:58 GMT
I agree with the comment that if you pull out the good stuff it’s not surprising you are fairing badly. More interested in experience like the last comment ie where sums left in for a decent period. Thanks for your help so far. Sorry I didn't make it clear that I had invested for over 5 years when I decided to cash out towards the end of last year (ish). I had a few hundred loans but don't recall how many - perhaps I could check if I get time and if it helps someone. When you've invested for a decent period of time of course you get non "good stuff". So when I tried to cash out, I found that this annualised return started close to double digits (maybe was slightly higher?) and just went down and down and down all this year. That probably happened because as you say there is no "good stuff" left. However, my understanding is that that figure represents what I have earned since I started investing at FC. I just hope that Ace is right and the number will start to creep up as recoveries kick in. Why is that experience not relevant to your question?
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michaelc
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Post by michaelc on Sept 16, 2018 17:41:56 GMT
That's a bit worrying. I'd be tempted to pull out now and reinvest somewhere else if I thought my return would drop to an annualised 3.5% once I decided to cash out. Hopefully your annualised return will rise as recoveries are received from defaulted loans. Can anyone else comment on whether this is a common scenario? And, whether the annualised rate does tend to recover to somewhere near the advertised rates once recoveries arrive? I don't think 3.5% is a common scenario with autobid only loans. My partner's 6 years old account annualised return (after fee and bad debt) is 6.6%, my 9 months old account is 7.5% Mine was of similar vintage and was even higher than your 6.6. Until I cashed out !
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Post by markaldrich on Sept 16, 2018 17:57:43 GMT
I agree with the comment that if you pull out the good stuff it’s not surprising you are fairing badly. More interested in experience like the last comment ie where sums left in for a decent period. Thanks for your help so far. Sorry I didn't make it clear that I had invested for over 5 years when I decided to cash out towards the end of last year (ish). I had a few hundred loans but don't recall how many - perhaps I could check if I get time and if it helps someone. When you've invested for a decent period of time of course you get non "good stuff". So when I tried to cash out, I found that this annualised return started close to double digits (maybe was slightly higher?) and just went down and down and down all this year. That probably happened because as you say there is no "good stuff" left. However, my understanding is that that figure represents what I have earned since I started investing at FC. I just hope that Ace is right and the number will start to creep up as recoveries kick in. Why is that experience not relevant to your question? Thanks - that does make more sense and is helpful. Thanks for the refer a friend link from a thread member. For info I’ve put a toe in the water and put in 2k to grab the offer and see how it goes
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that can’t be sold, obviously!. If you were only active for a few months your returns will be abnormal. You will only see average returns if you invest in probably 600 to 800 loans, for at least five years, reinvest repayments and certainly not selling anything. Otherwise all bets are off.