kaya
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Post by kaya on Dec 13, 2014 17:53:42 GMT
P2P lending is risky, compared to a bank, and a foreign P2P is, arguably, even riskier, so why do you invest here? Is there not enough choice in the UK? Is it worth the hassle of money transfers and exchange?
Is it worth the risk? So, why do you bother?
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duck
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Post by duck on Dec 14, 2014 8:40:21 GMT
That is a good question and I see nobody else has so far come up with an answer!
I suppose the initial draw is the baseline higher rates (not inconsiderable when compared to UK ) But there are as I believe you recognise far greater risks. It is for that reason my investment is a small % of my total P2P/P2B ending (6 figures total).
Of the platforms that I partake in the Bondora spreadsheets are by far the largest and keeping track of @2000 loans takes some management, UK tax treatment of '+60 defaults' (had a bad month in Nov and had @£600 added to my +60's), the platform that continually changes (and in my case confuses!) .................... so why do I continue to invest? Simply in % terms (with everything - excluding my time - factored in) Bondora is providing my second best return.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Dec 15, 2014 12:30:46 GMT
For me it's the sheer entertainment value, you never know what to expect from one day to the next.
What the final return will be will take years to establish. It will all hinge on actual bad debt recovery.
Being resident in the Euro zone makes it attractive for me, but I would not add funds until the latest profile bidding is well tested.
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parisingoc
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Post by parisingoc on Dec 15, 2014 19:08:09 GMT
For me it's the sheer entertainment value, you never know what to expect from one day to the next. What the final return will be will take years to establish. It will all hinge on actual bad debt recovery. I second the above. Bondora has pleased me inasmuchas I have remembered things I had forgotten I knew. I have also spent endless hours trying to find a sensible way of interpreting the "Agile" platform changes, only to have that effort dashed to smithereens as they head inexorably towards their own, personal version of sub-prime meltdown. However, it has been a great learning process and it hasn't cost me too much (yet!) and may even show a profit. But there I go, back on that idealised view that P2P and P2B just might actually work as originally envisaged. And so, I am moving my money slowly but surely away from them and towards that vision. A bit (some may say) like the man in the desert, chasing the mirage, except I still think its real! 
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Post by marek63 on Dec 22, 2014 20:09:35 GMT
I am trying very hard to sell down my fairly small holding (sub 1000 Euro). My partner suggested that certain Eastern European borrowers would just take the money and never pay anything, pointing to HomeCredit Russia's early experience there. Unfortunately she seems to be right... However, theoretically still making money-- but crazy amounts of late payers/zero payments/dodgy borrowers. Not something I am keen to recommend unless you have time to analyse 2000 5 euro loans and run your own models. The default rates (not necessarily loss rates) are just too high even on 'good' borrowers to make it worth doing.
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james
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Post by james on Jan 1, 2015 6:09:43 GMT
P2P lending is risky, compared to a bank, and a foreign P2P is, arguably, even riskier, so why do you invest here? Is there not enough choice in the UK? Is it worth the hassle of money transfers and exchange?
Is it worth the risk? So, why do you bother? The potential investment returns used to be good compared to the competition. That no longer appears to be so, given the added risks, removing the reason to be using Bondora for new investments. I still have more than £20,000 invested there but don't currently anticipate adding more.
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