dead-money
Rocket to the Moon
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Post by dead-money on Jun 20, 2021 9:16:44 GMT
Feels like time for another poll
Where are you putting new money? Or what are you transferring into ?
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p2pfan
Member of DD Central
Full-Time Investor
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Post by p2pfan on Jun 20, 2021 14:14:51 GMT
Loanpad seems to be the winner so far.
I understand that Loanpad seems more secure than others and therefore one is less likely to lose one's money. They are also one of my favourite P2P platforms.
However, I've noticed the LTVs being higher and some of the borrowers' projects being more risky ones on my latest loans through them.
A return of 3% or 4% is very low when one considers that inflation is currently 2.1% and almost certain to head towards 3% soon. Then, depending on the amounts of one's invest returns, one may have to pay a sizeable ratio of that 3% or 4% interest in tax, meaning one is basically losing money by lending through Loanpad.
That's despite Loanpad probably having a similar risk of platform failure as P2P platforms paying much higher returns, because one never knows with any P2P company what's happening behind the scenes and how close they are to going bust. (As has been commented before regarding these polls, there's an eerie correlation between P2P platforms that come top in these polls and those that go into Administration!)
Thoughts?
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Post by erniec on Jun 20, 2021 14:34:28 GMT
Elfin Market.
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dead-money
Rocket to the Moon
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Post by dead-money on Jun 20, 2021 17:28:24 GMT
Loanpad seems to be the winner so far. ... (As has been commented before regarding these polls, there's an eerie correlation between P2P platforms that come top in these polls and those that go into Administration!) Thoughts? Assetz Capital came top in the last two polls (Ignoring the 'Not P2P' option) and isn't in administration, but do seem intent on alienating their remaining lender base.
4%+ (Go get those referral bonuses!) in a diversified autoinvest account from Loanpad compares favourably to ~1% pre-tax in FSCS protected savings.
But yes, platform failure risk is always the unmeasurable known.
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Post by mfaxford on Jun 20, 2021 17:34:15 GMT
Where are you putting new money? Or what are you transferring into ? I've been putting a bit into Connective Lending. Although as they're still a new player it might be more of a gamble than an investment at this point. I've still got a lot in Zopa although I'm not putting new money in there currently (some is being re-invested in there, some might go to CL or something else)
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Jun 21, 2021 7:15:00 GMT
1. Loanpad. Falls out of AC, into Lp. 2.Other. ( is my next biggest ££)Not listed P2p. Had a good look around the P2P world when the Pandemic hit. 3. CP (But only 2 votes allowed).
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aju
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Post by aju on Jun 21, 2021 8:26:45 GMT
So i had 2 votes and thought i must use them, however
1. No more P2P 2. Zopa
In the case of 1 Mrs aju and myself at present are hunkering down elsewhere (Zopa bank and PB's at present but the Zopa bank funding will complete later in the year and we'll have to find somewhere else)
For Zopa P2P we still have low 4 figure sums across both current products but we are drawing down, slowly, and whilst not reinvesting at present when we get to mid 3 figures it's very tempting to just turn reinvest back on for the time being if only to maintain a minimal presence.
Whilst a stupid loan sale attempt with everyone and their dog at the start of the pandemic (March but selling in June/July) did lose quite a bit of profit headroom we are still well clear of actual capital losses. (Mind you our daughters lavish wedding in ibiza 2 years ago went a long way to denting our investment fund way more than the pandemic could ever have done!).
so I guess that as usual time will tell ...
PS: We probably would have remained in RS too if they were still available.
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agent69
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Post by agent69 on Jun 21, 2021 9:07:39 GMT
The problem with these polls is that they have been catastrophically wrong in the past (I recall Ly, Col and MT all coming top in previous polls).
I am pulling out of P2P and my advice to others would be don't invest in the platforms that finish in the top 3 places
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aju
Member of DD Central
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Post by aju on Jun 21, 2021 10:58:08 GMT
The problem with these polls is that they have been catastrophically wrong in the past (I recall Ly, Col and MT all coming top in previous polls).
I am pulling out of P2P and my advice to others would be don't invest in the platforms that finish in the top 3 places
The issue with these polls is that there are generally not enough voters to make it subjective but otherwise i'd agree with both your sentiments. I did it for fun
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Jun 22, 2021 9:37:48 GMT
I had a large amount in P2P in the past and the Euro platforms were by far the most profitable. As I understood it the UK platforms were required to have orderly wind down arrangements in place, so that loan repayments/recoveries still belonged to investors if a platform should fail. Reality has been quite different and when a platform goes down there are a multitude of sharks consuming the spoils so that investors end up with hardly anything. The FCA has been entirely useless and only made things worse for us.
I will not be investing in P2P again even though my Euro platforms have all returned at least 12% with no failures, (even Bondora, having stopped 5 years ago and waited for recoveries).
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mrk
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Post by mrk on Jun 22, 2021 22:07:29 GMT
my Euro platforms have all returned at least 12% with no failures, (even Bondora, having stopped 5 years ago and waited for recoveries).
You must have avoided Grupeer. Good for you.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Jun 22, 2021 23:47:24 GMT
I had a large amount in P2P in the past and the Euro platforms were by far the most profitable. As I understood it the UK platforms were required to have orderly wind down arrangements in place, so that loan repayments/recoveries still belonged to investors if a platform should fail. Reality has been quite different and when a platform goes down there are a multitude of sharks consuming the spoils so that investors end up with hardly anything. The FCA has been entirely useless and only made things worse for us.
I will not be investing in P2P again even though my Euro platforms have all returned at least 12% with no failures, (even Bondora, having stopped 5 years ago and waited for recoveries).
I'm very happy to hear that the Euro platforms have performed particularly well for you. I avoided European platforms, despite the substantially higher returns on offer, because I was under the delusion that there would be meaningful protections for lenders with UK P2P platforms compared to those based in the Baltic states etc. How naive and stupid I was. As you very rightfully say, I've experienced time and again that (a) UK P2P platforms are run atrociously, with blatant illegal and criminal behaviour by their Directors and/or other allied parties (e.g. on one P2P platform which recently suddenly closed down, the Director took an "unauthorised Director's loan" - that would have been defined as "stealing money " if he didn't have the "right" skin colour - which, when discovered, triggered the platform going into Administration) and (b) when P2P platforms do go into Administration, everybody is acting against your interests as a lender, whether it is the FCA, the FOS, Action Fraud/the police, the Administrators, Solicitors, Valuers, Surveyors, the borrowers etc. etc.) and therefore chances of you recovering your capital nevermind interest are negligible. Therefore, the biggest risk by far in P2P Land is a platform going bust, not individual loans, as the downside is loss of all/almost all one's capital and years and years of time wasted and suffering severe distress going through Administration processes versus a small potential upside of perhaps 2% or 3% p.a. return after factoring in tax and inflation. I'm still very much in the P2P game as I hope the existing larger P2P platforms won't also suddenly go out of business, but the vast majority of my investments go into equities and bonds etc. because I don't worry about sharedealing platforms like Hargreaves Lansdown suddenly going into Administration and me losing everything I'd invested into shares through them. How high a risk would you say there is of one or more of the existing 'well loved' P2P platforms we talk about on these forums going into Administration within, say, the next year?
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Jun 23, 2021 6:46:32 GMT
my Euro platforms have all returned at least 12% with no failures, (even Bondora, having stopped 5 years ago and waited for recoveries).
You must have avoided Grupeer. Good for you. Yes, I did one loan on Grupeer when it started but it didn't feel right somehow so I left it alone.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Jun 23, 2021 6:57:07 GMT
How high a risk would you say there is of one or more of the existing 'well loved' P2P platforms we talk about on these forums going into Administration within, say, the next year? That is something we cannot know. Only the FCA can look into that and that doesn't seem to be something they are competent to deal with.
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Post by WestonKevTMP on Jul 18, 2021 20:05:13 GMT
The problem with these polls is that they have been catastrophically wrong in the past (I recall Ly, Col and MT all coming top in previous polls).
I am pulling out of P2P and my advice to others would be don't invest in the platforms that finish in the top 3 places
Ha ha, that is so true. Guess I should be relieved that The Money Platform isn't even on the list. Kevin.
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