|
|
Post by mainman on Jan 25, 2020 18:32:52 GMT
Hi guys,
I am looking to invest in peer2peer, after a bit of research I came across CP (crowdproperty), the interest looks good 8%, you don't get that at any bank in the UK, you barely get 2.5 with HSBC HTB ISA.
I got a few questions:
1. Have you had problems with projects that went default? Did you manage to get your investment back?
2. I have just opened a IFISA account with CP, should I transfer 20k to this IFSA and let auto-invest on? or spread the IFISA 20k accross more p2p? which ones give you confidence?
3. How much are you guys diversifying?
4. How do you calculate the tax?
I will probably have more questions, but meanwhile if you can help me with these with be awesome!
Regards,
D
|
|
archie
Posts: 1,838 
Likes: 1,842
|
Post by archie on Jan 25, 2020 18:50:29 GMT
Hi guys, I am looking to invest in peer2peer, after a bit of research I came across CP (crowdproperty), the interest looks good 8%, you don't get that at any bank in the UK, you barely get 2.5 with HSBC HTB ISA. I got a few questions: 1. Have you had problems with projects that went default? Did you manage to get your investment back? 2. I have just opened a IFISA account with CP, should I transfer 20k to this IFISA and let auto-invest on? or spread the IFISA 20k across more p2p? which ones give you confidence? 3. How much are you guys diversifying? 4. How do you calculate the tax? I will probably have more questions, but meanwhile if you can help me with these with be awesome! Regards, D 1. No defaults on CP yet. 2. You can only invest in one IFISA this tax year with new money (you could transfer ISA money from previous tax years). You may also invest new money in one cash ISA and one stocks and shares ISA. Total across all ISAs for this tax year must not exceed 20k. For auto-invest you may want to watch for multiple tranches of the same loan and maybe only invest in one. You can set 'skip next project' if required.
I'm not qualified to give advice.
3. I'll pass as everyone invests differently. 4. No tax in an IFISA.
|
|
|
|
Post by Ace on Jan 25, 2020 18:55:20 GMT
Hi guys, I am looking to invest in peer2peer, after a bit of research I came across CP (crowdproperty), the interest looks good 8%, you don't get that at any bank in the UK, you barely get 2.5 with HSBC HTB ISA. I got a few questions: 1. Have you had problems with projects that went default? Did you manage to get your investment back? 2. I have just opened a IFISA account with CP, should I transfer 20k to this IFSA and let auto-invest on? or spread the IFISA 20k accross more p2p? which ones give you confidence? 3. How much are you guys diversifying? 4. How do you calculate the tax? I will probably have more questions, but meanwhile if you can help me with these with be awesome! Regards, D Hi mainman , welcome to the forum. 1. CP haven't had any defaults yet. They had 3 loans go over 180 days late 4ish years back, but all capital and interest was recovered. 2. I wouldn't feed it all in at once as you will suffer some cash drag while it gradually gets invested over a few loans. You can't achieve 8% due to cash drag before your is cash is invested and cash drag after you've pledged but before the loan is drawn down. I'm expecting the highest interest rate you're likely to achieve is 7% assuming no defaults. This is still a good deal IMO. 3. I'm diversified over 27 platforms. It's way too many but I'm addicted and picking the right ones is about as easy as nailing fog. I think that between 5 and 10 platforms would be a more sensible number. 4 Profits on CP are taxed as interest. You can enter the info from the annual statement on you tax form. Good luck EDIT: crossed with Archie. Very good point on the tax question Archie😃
|
|
|
|
Post by gravitykillz on Jan 25, 2020 20:30:24 GMT
I agree crowdproperty is an excellent platform. I have been investing here for 8 months and no problems yet. I am currently invested here and lendinvest. And the rates are pretty good. But just make sure you dont put all your eggs into one basket!
|
|
|
|
Post by gravitykillz on Jan 25, 2020 20:35:17 GMT
Only thing that annoys me though is the level of investment in each project.
£500 unless you use autoinvest!
Surely £250 or £100 would be better and allow more diversification.
|
|
|
|
Post by Ace on Jan 25, 2020 20:42:58 GMT
Only thing that annoys me though is the level of investment in each project. £500 unless you use autoinvest! Surely £250 or £100 would be better and allow more diversification. That's a good point Gravity, as they're happy to accept £50 investments in AutoInvest then why do SelfSelect loans have to be £500? CrowdProperty Representative ?
|
|
|
|
Post by gravitykillz on Jan 25, 2020 20:52:40 GMT
Only thing that annoys me though is the level of investment in each project. £500 unless you use autoinvest! Surely £250 or £100 would be better and allow more diversification. That's a good point Gravity, as they're happy to accept £50 investments in AutoInvest then why do SelfSelect loans have to be £500? CrowdProperty Representative ? Thanks ace. Doubt anything will change tho.
|
|
Greenwood2
Member of DD Central
Posts: 4,243
Likes: 2,686
|
Post by Greenwood2 on Jan 25, 2020 21:27:29 GMT
I agree crowdproperty is an excellent platform. I have been investing here for 8 months and no problems yet. I am currently invested here and lendinvest. And the rates are pretty good. But just make sure you dont put all your eggs into one basket! I wouldn't be telling anyone that a platform was 'excellent' after only investing for 8 months (or probably ever for that matter), it takes much longer for problems to emerge. Putting £20,000 into P2P when you are unfamiliar with it in general and into a platform you don't know seems a bit precipitous to me. If that is a relatively small amount for the IP fair enough. Not that I have anything against CP it may well be one of the best out there. Col, Lendy and FS were all excellent for most people after investing for 8 months and their rates were pretty good too, and then look what happened.
|
|
|
|
Post by gravitykillz on Jan 26, 2020 3:38:49 GMT
I agree crowdproperty is an excellent platform. I have been investing here for 8 months and no problems yet. I am currently invested here and lendinvest. And the rates are pretty good. But just make sure you dont put all your eggs into one basket! I wouldn't be telling anyone that a platform was 'excellent' after only investing for 8 months (or probably ever for that matter), it takes much longer for problems to emerge. Putting £20,000 into P2P when you are unfamiliar with it in general and into a platform you don't know seems a bit precipitous to me. If that is a relatively small amount for the IP fair enough. Not that I have anything against CP it may well be one of the best out there. Col, Lendy and FS were all excellent for most people after investing for 8 months and their rates were pretty good too, and then look what happened. 1.software is good 2.rates are decent 3.withdrawals are instant 4.customer service is good 5. No defaults or losses so far 6. Platform recently received major external investment. In comparison to some other platforms I would call that excellent.
|
|
|
|
Post by gravitykillz on Jan 26, 2020 3:39:32 GMT
But hey that's my personal opinion.
|
|
Greenwood2
Member of DD Central
Posts: 4,243
Likes: 2,686
|
Post by Greenwood2 on Jan 26, 2020 8:45:55 GMT
But hey that's my personal opinion. That's fine but you rather stated it as a fact rather than an opinion, 'it is an excellent platform', which is why I commented. I agree it has performed very well to date compared to many other platforms, with the usual caveats past performance..., capital at risk..., etc.
|
|
|
|
Post by mainman on Jan 26, 2020 10:31:30 GMT
Thanks so much guys, you've been helpful! I feel like this topic should go to general. Got a few more questions  if you would be so kind to help: 1. Basically I already started with a mistake! I've opened 2 IFISAs one in CapitalRise (CR) and one with with CP, now I think I just want to keep the CP one(no money were transferred to them). How should I proceed onward? 2. How do IFSAs work? You open only one with a provider, you transfer some cash to that provider, the cash stays on that provider, then you move your IFSA to another provider, send some more cash; Is this correct? I am getting confused with this IFISA thing to be honest. 3. Do you have somewhere a top of the most trustworthy P2P with a small description of these platforms? Regards, D |
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 26, 2020 11:03:58 GMT
You can open as many IFISAs as you want each year, but you can only subscribe new money from the current year's allowance.
If you have done the latter to two then you are in breach and will have to tell one of them to unwind it. They may charge for this.
If you have only done it to one you are stuck with that platform but if they allow transfers out you can transfer it to the other one.
If you have subscribed new money to neither yet then pick one.
this is my understanding but I am not a tax advisor
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Jan 26, 2020 11:04:45 GMT
Thanks so much guys, you've been helpful! I feel like this topic should go to general. Got a few more questions if you would be so kind to help: 1. Basically I already started with a mistake! I've opened 2 IFISAs one in CapitalRise (CR) and one with with CP, now I think I just want to keep the CP one(no money were transferred to them). How should I proceed onward? 2. How do IFSAs work? You open only one with a provider, you transfer some cash to that provider, the cash stays on that provider, then you move your IFSA to another provider, send some more cash; Is this correct? I am getting confused with this IFISA thing to be honest. 3. Do you have somewhere a top of the most trustworthy P2P with a small description of these platforms? Regards, D 1) As long as you have only paid into 1 IFISA it should be ok. You can only pay fresh money into one IFISA per year. You can however transfer money into that second account from other ISAs. You can open as many IFISAs as you want and if any of your other ISAs (cash,S&S, if any) supports partial transfers out you could transfer money into each of the new ones; as long as it is not fresh money. You need to use transfer forms provided by the target platforms for transfers. You cannot just take the money out of ISA1 to your bank account and pay it forward into ISA2. You could also call CP and close the account. You could also just let it run empty and pay nothing in. 2) You either pay new cash in or transfer in from another ISA. You can keep an ISA for longer than a year (that should actually be the default; there are problems with closing IFISA accounts ...). If you reach your 20k ISA limit, you can pay more cash into the same account the next tax year; but again, you can only pay directly into one in that year. There aren't really major differences between IFISAs and cash or Stock&Shares ISAs regarding what and when you can pay in. Read what HMRC have to say www.gov.uk/individual-savings-accounts. 3) What's top depends on many things, inclduing what your goals and risk level are. As you have already opened an account go with that account until April (when you could open and pay into another one). Until then, read around on this board to see what motivates people and what they say about the platforms. "trustworthy" is a word not to use too much in the p2p world; perhaps better go with the "least level of skepticism"?
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 26, 2020 11:12:07 GMT
Do you have somewhere a top of the most trustworthy P2P with a small description of these platforms? I don't know about "trustworthy" but if you mean "risky" then as a general rule I normally assume that risk is proportionate to interest rate.
|
|
if you would be so kind to help:
