|
|
Post by stevexxx on Dec 4, 2019 12:12:22 GMT
So what interest rate are you actually earning.
I've had money invested in Zopa for many years now and have done very will in the past with 5 to 6% return. That has slowly been creeping down and the return on my 2 accounts for the last 12 months is now only 3.8%.
I'm wondering if its time to get out, though its still way better than any bank.. but is it now worth the risk..?
|
|
ashtondav
Member of DD Central
Posts: 1,814 
Likes: 1,092
|
Post by ashtondav on Dec 4, 2019 12:56:13 GMT
For me 3.6% core 4.1% plus
For the wife 3.3% core 2.6% plus. Her performance page gives the helpful comment:
“It looks like your current NAR for Plus is below target. This might be because your loans have had a higher than expected default rate so far” we’ll i’ll Be damned - surely not!
As an early adopter (2005) I get a bonus 1% so i’m Not displeased with 4.6% and 5.1%. But it’s still shocking compared to what I get on RS (before recent changes) and AC (for 90 day money), hence my investment dropping from well over £100,000 to about £20,000.
The wife’s portfolio performance on £16,000 invested is appalling. It beggars belief, actually.
To be honest I can’t think of a reason for investing in a p2p with no provision fund. In fact I can’t think why I would invest in an under delivering platform that offers no security backing for its loans and no provision fund, well I suppose Zopa is the platform least likely to collapse. That’s it’s only unique selling point, and I hold as diversification only.
Assetz Capital 90 day, 30 day and QAA for new funds until Zopa delivers the returns it advertises.
The poor Zopa products seem to imply to me that they attach more importance to their banking initiative.
|
|
Greenwood2
Member of DD Central
Posts: 4,396
Likes: 2,789
|
Post by Greenwood2 on Dec 4, 2019 14:37:56 GMT
For me 3.6% core 4.1% plus For the wife 3.3% core 2.6% plus. Her performance page gives the helpful comment: “It looks like your current NAR for Plus is below target. This might be because your loans have had a higher than expected default rate so far” we’ll i’ll Be damned - surely not! As an early adopter (2005) I get a bonus 1% so i’m Not displeased with 4.6% and 5.1%. But it’s still shocking compared to what I get on RS (before recent changes) and AC (for 90 day money), hence my investment dropping from well over £100,000 to about £20,000. The wife’s portfolio performance on £16,000 invested is appalling. It beggars belief, actually. To be honest I can’t think of a reason for investing in a p2p with no provision fund. In fact I can’t think why I would invest in an under delivering platform that offers no security backing for its loans and no provision fund, well I suppose Zopa is the platform least likely to collapse. That’s it’s only unique selling point, and I hold as diversification only. Assetz Capital 90 day, 30 day and QAA for new funds until Zopa delivers the returns it advertises. The poor Zopa products seem to imply to me that they attach more importance to their banking initiative. What do those figures work out as taking tax relief on losses into account? I find it confusing to calculate but I think it makes a significant improvement, since losses are quite high. Whereas with RS and other platforms with a pf there are no (visible) losses to off set. For example, hypothetically I have £1000 taxable income at 4% interest rate, with £400 allowable losses with relief of 20% (or 40% if you're lucky) how much does that increase the notional 4% interest (before tax) by? I'm sure there is a simple calculation for it but I get tangled up!
|
|
|
|
Post by Ace on Dec 4, 2019 23:49:47 GMT
I've been investing for 19 months, Plus account only.
My XIRR is currently 5.12%.
I did switch off relending and withdrew repayments for 6 months from March this year. Now relending again. Currently have ~75% of my original capital invested.
Zopa isn't one of my preferred platforms, it's really only held as a very small part of my pot for diversification. Now under 1% of total p2p investments. I was considering increasing as I have new funds to invest, but I've had too many defaults recently. Will probably hold and watch for now.
|
|
|
|
Post by stevexxx on Dec 5, 2019 0:09:44 GMT
I've been investing for 19 months, Plus account only. My XIRR is currently 5.12%. I did switch off relending and withdrew repayments for 6 months from March this year. Now relending again. Currently have ~75% of my original capital invested. Zopa isn't one of my preferred platforms, it's really only held as a very small part of my pot for diversification. Now under 1% of total p2p investments. I was considering increasing as I have new funds to invest, but I've had too many defaults recently. Will probably hold and watch for now. I did find in the first 12 to 18 months of my isa account it was flying about the same, then it dropped rapidly as the bad debts hit quickly.. but ive made good bucks from zopa in the past so will stick with for now.. but if rates drop lower i'm out. My isa account now matched my investment account of some 5 years running at about 3.7%
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Dec 5, 2019 0:45:15 GMT
Our XIRR's have been taking a hit in Zopa of late - we made some sell outs to move funds across to RS back in June. We are relending in Zopa ISA again but the defaults do seem to be hitting our XIRR's quite a bit. As I have said before we may hold on until Mar to give it time to fully stabilise but the last couple of months have been very close to the down side.
As a whole investment - 4 products (2 each) we are still at 4.5% so not all is lost and we have some clear profit to cover things but it does look increasingly like the good days in zopa for us are almost over. I'm loathed to sell at at 1% but if we can do it but keep the PF cover still then perhaps we will have to consider it.
Many who know me know we are only trying to cover inflation tax and get a little on top so its a fine line we are nearly down to.
|
|
|
|
Post by Deleted on Dec 5, 2019 19:03:33 GMT
Our XIRR's have been taking a hit in Zopa of late - we made some sell outs to move funds across to RS back in June. We are relending in Zopa ISA again but the defaults do seem to be hitting our XIRR's quite a bit. As I have said before we may hold on until Mar to give it time to fully stabilise but the last couple of months have been very close to the down side. As a whole investment - 4 products (2 each) we are still at 4.5% so not all is lost and we have some clear profit to cover things but it does look increasingly like the good days in zopa for us are almost over. I'm loathed to sell at at 1% but if we can do it but keep the PF cover still then perhaps we will have to consider it. Many who know me know we are only trying to cover inflation tax and get a little on top so its a fine line we are nearly down to. Not sure over what period you're calculating your XIRRs but if it's over a year or more, you may find the effect of the current losses is dampened quite a bit. It might be worth looking at XIRR over 1 month, 3 months, 6 months etc, or looking at rolling quarters.
|
|
|
|
Post by stevexxx on Dec 5, 2019 21:56:12 GMT
Not sure over what period you're calculating your XIRRs but if it's over a year or more, you may find the effect of the current losses is dampened quite a bit. It might be worth looking at XIRR over 1 month, 3 months, 6 months etc, or looking at rolling quarters. I calculate things over 12 months to give a good picture, some of those months earnings were down to almost nothing but the average is still dropping on my accounts..
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Dec 6, 2019 1:07:16 GMT
Our XIRR's have been taking a hit in Zopa of late - we made some sell outs to move funds across to RS back in June. We are relending in Zopa ISA again but the defaults do seem to be hitting our XIRR's quite a bit. As I have said before we may hold on until Mar to give it time to fully stabilise but the last couple of months have been very close to the down side. As a whole investment - 4 products (2 each) we are still at 4.5% so not all is lost and we have some clear profit to cover things but it does look increasingly like the good days in zopa for us are almost over. I'm loathed to sell at at 1% but if we can do it but keep the PF cover still then perhaps we will have to consider it. Many who know me know we are only trying to cover inflation tax and get a little on top so its a fine line we are nearly down to. Not sure over what period you're calculating your XIRRs but if it's over a year or more, you may find the effect of the current losses is dampened quite a bit. It might be worth looking at XIRR over 1 month, 3 months, 6 months etc, or looking at rolling quarters. I do them over whole period, 12 months and rolling last 12 months. You are right they will be skewed in the longer term picture. The more recent period of last 6 months or so have not been great but we sold quite a bit and i was always expecting it to take time to pick up again. I also do rolling last month as well but try not to pay too much attentions to it as its too fine I feel.
|
|
|
|
Post by Deleted on Feb 9, 2020 11:04:34 GMT
For me the risk v return equation has now left Zopa. My ISA return over the preceding last nine months worked out at a (annualised) measly 1.9%. I had already reversed out of the non-ISA a/c and made the decision to sell out rather than run down. I have now successfully sold out the ISA and transferred to RS. I have projected that the higher return (still only 4%) will repay the Z sale in about five months time. Annoying shifting money around but it had to be done. The only hassle is I now have c. 10% of loans unsold which I will now just run down. Happy to be away from Zopa now which is abit sad as I have been with them for over twelve years. Things are constantly changing in the P2P arena and we all have adapt as we see fit. Everyone has slightly different views here, some have specific grievances, but there is a clear(ish!) picture of what's going on. I see that the platform's that get too expansive and stray away from their core business get in trouble and lose their customer base. My personal choice [for now!] is in order: RS, LW
|
|
|
|
Post by Deleted on Feb 9, 2020 11:28:39 GMT
For me the risk v return equation has now left Zopa. My ISA return over the preceding last nine months worked out at a (annualised) measly 1.9%. I had already reversed out of the non-ISA a/c and made the decision to sell out rather than run down. I have now successfully sold out the ISA and transferred to RS. I have projected that the higher return (still only 4%) will repay the Z sale in about five months time. Annoying shifting money around but it had to be done. The only hassle is I now have c. 10% of loans unsold which I will now just run down. Happy to be away from Zopa now which is abit sad as I have been with them for over twelve years. Things are constantly changing in the P2P arena and we all have adapt as we see fit. Everyone has slightly different views here, some have specific grievances, but there is a clear(ish!) picture of what's going on. I see that the platform's that get too expansive and stray away from their core business get in trouble and lose their customer base. My personal choice [for now!] is in order: RS, GS, LW It's worth trying to sell your remaining Zopa loans every couple of weeks. Some may not have sold due to pending repayments and some in arrears may have caught up allowing them to be sold, at least they did for me (but not many).
|
|
|
|
Post by Deleted on Feb 9, 2020 12:31:29 GMT
For me the risk v return equation has now left Zopa. My ISA return over the preceding last nine months worked out at a (annualised) measly 1.9%. I had already reversed out of the non-ISA a/c and made the decision to sell out rather than run down. I have now successfully sold out the ISA and transferred to RS. I have projected that the higher return (still only 4%) will repay the Z sale in about five months time. Annoying shifting money around but it had to be done. The only hassle is I now have c. 10% of loans unsold which I will now just run down. Happy to be away from Zopa now which is abit sad as I have been with them for over twelve years. Things are constantly changing in the P2P arena and we all have adapt as we see fit. Everyone has slightly different views here, some have specific grievances, but there is a clear(ish!) picture of what's going on. I see that the platform's that get too expansive and stray away from their core business get in trouble and lose their customer base. My personal choice [for now!] is in order: RS, GS, LW It's worth trying to sell your remaining Zopa loans every couple of weeks. Some may not have sold due to pending repayments and some in arrears may have caught up allowing them to be sold, at least they did for me (but not many). Hi yes I might try that. I would have to say that Z stuck quite well to their 1% fee...some other costs as expected but [for me] a good exercise and a relief to have got it done. I have another non-P2P ISA maturing in May and now torn between transferring in to another P2P platform or a stocks/funds ISA. My Funds have outperformed all the P2P platforms so it is a dichotomy. With P2P platforms gradually becoming unattractive full portfolio diversity is shrinking amongst all the asset classes.
|
|
benaj
Member of DD Central
N/A
Posts: 5,661
Likes: 1,746
|
Post by benaj on Feb 9, 2020 17:17:21 GMT
I sold out early. So, I couldn't earn much after the selling fees and interest adjustment, made 0.8% realised profit since 2017, after holding the investment for 8 months. I was glad to get out at the time, but I also made other investment mistakes after Zopa.  There are so many things to learn in P2P lending. |
|
easylender
Member of DD Central
Posts: 249
Likes: 225
|
Post by easylender on Feb 9, 2020 20:24:45 GMT
I've been lending through Zopa since 2010. This made an IRR of 5.9% to 2017 after which the old safeguard (Classic) account has been running down. The IRR since then has been 5.2%.
I also have an ISA started in 2017 with a mixture of Core, Classic and (mostly) Plus loans, IRR to date 4.25%.
|
|
|
|
Post by shanghaiscouse on Feb 13, 2020 14:49:06 GMT
I have been in Zopa since June 2018 and have now sold out, but guess what, all the bad debts I ever had only materialised when I started selling! What an incredible coincidence! Nothing needed providing for as we went along, everything looked fine and dandy, but once I hit the sell button..... I put 12k in in june 2018 and am getting out with....12k. most interest has gone in bad debt, I have £40 interest remaining after bad debts, but still £1,500 of loans unsold......
waste of time and effort.
|
|
