ash83
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Post by ash83 on Nov 16, 2018 10:27:23 GMT
Hi All,
Just read this article/warning regarding property P2P lenders and the increasing risk in case property prices fall and intrest rates rise (seems to be likley with the current Brexit mess that we're in!)
Anyway sharing as some others might find it usefull
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benaj
Member of DD Central
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Post by benaj on Nov 16, 2018 11:08:05 GMT
I think we should be happy with the p2p sector in the UK compared to China. I definitely hope UK p2p will even better for the future. There are so many "defaulted" Chinese p2p platforms in the last 2 years. due to little regulation. Before the Chinese government first signaled regulations in 2016, the P2P lending industry aggressively expanded. By the end of 2015, there were 1,031 total troubled platforms out of 3,448 platforms still in operation. So, on average, one out of four was problematic. Some chinese investors suffered massive loss due to weak regulation, "Zhang Xue, for instance, a 47-year old single mother with a 13-year-old son, was reported to have lost the RMB 3.8 million her husband left her with when he died of a heart attack." Every regulator faces the same challenge, how to rein in financial risks without causing panic among peer-to-peer investors? According to Rupert Taylor @ AtiFI data, "So far it is impressive that many of the platforms have self-regulated by adopting consistent measures of performance. To really develop, the asset class needs widespread adoption of standardised measures that allow risk and return to be compared like with like.” " “Generally there are almost zero defaults and some loan extensions, but it is getting paid back. But we need standardised data." |
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Nov 16, 2018 14:52:21 GMT
I'm surprised that anyone would consider this as any kind of news, or "Warning."
We all know the very high risk already exists and has done so for a long time now, because of the systematic gross over-valuations perpetrated, with the resulting massive losses on Defaults and Virtual Defaults having been the norm for years.
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Post by mrclondon on Nov 16, 2018 16:16:47 GMT
If property prices fall then that certainly could be a problem. Did I read elsewhere that property prices are falling in Central London? That's what the headlines say, but as always its not that simple. "Central" London is not a particularly good barometer of anything, as a significant % of property is not owner occupied by UK nationals. Also there are some distortions when huge developments reach completion as there is short term over supply - Paddington and Kings Cross for example, and Nine Elms / Battersea where they are counted as central London.
In my local area a couple of miles from the City (normally described as "Inner London"), what is happening is a compression in the range of prices, and very few sales at the top end making the data not that reliable. 2 years ago there were a decent number of sales in a half mile radius of me between say £425k and £1.3m. This year its £500k to £950k - to explain that further, the 1 bed flats at the bottom of the market have gone up over the last 2 years (can't build them fast enough, new devs sell out on day of launch), 3/4 bed townhouses at the £900k-£1m mark are essentially un changed, but virtually zero sales of 2 or 3 bed riverside penthouse flats at the £1.2-£1.3m mark. The local market is meeting resistance at £1m.
Make of that what you will !
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