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Post by dan1 on Aug 17, 2019 8:17:44 GMT
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eeyore
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Post by eeyore on Aug 17, 2019 9:16:25 GMT
Interesting views - perhaps repost on the boards where these sorts of loans are found, perhaps MT?
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iRobot
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Post by iRobot on Aug 17, 2019 9:28:25 GMT
TL;DR: "You just need to think about what you are investing in and don't be drawn in by high headline returns alone."
Sums up P2P and pretty much all investing, really. (But, to the benefit of the shadier industry operatives, there has been, is and will be plenty of folk dazzled by the 'headline rates alone'.)
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 18, 2019 7:50:51 GMT
IMO he paints an over rosy view of commercial property. The value of these depends very largely on the rental stream from long term leases. But many leases have break clauses and many leaseholders go bust. Just look at the high street of your local town. How many charity shops? Each of these represents a building where a lease was terminated one way or another. Banks are closing branches as and when leases end or come to a break point. The future of retail is bleak.
Completed, preferably occupied, residential is the safest IMO although some loss is possible.
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trevor
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Post by trevor on Aug 18, 2019 8:25:50 GMT
Residential over commercial every day of the week. On AC 90% plus of my lending is residential development. The % on offer tends to be 1-2% higher.
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liso
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Post by liso on Aug 18, 2019 9:32:28 GMT
Residential over commercial every day of the week. On AC 90% plus of my lending is residential development. The % on offer tends to be 1-2% higher. The % is higher because the risk is higher, and IMV the increased interest rate does not generally reflect the increased risk. I would rather lend on a commercial property like an office, café, HMO etc where there is a tangible asset for security. With a development loan the asset is not yet built, and if the loan gets into difficulties, what then? Selling a part completed development is very difficult. There are exceptions of course, but as a general rule I avoid development loans.
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nummo
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Post by nummo on Aug 18, 2019 13:35:23 GMT
IMO he paints an over rosy view of commercial property.. Yeah - not like he is biased in any way ...
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