littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
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Post by littleoldlady on Oct 14, 2022 11:09:28 GMT
Yep, plenty of good loans out there. 😉 But also some (well at least one that I hold) that seems certain to end up in a substantial loss, but CP kick the can down the road, thus increasing the eventual loss due to Administrator's fees, rather than fess up and bite the bullet now. [Edit: CP are now saying something more hopeful, apparently contradicting what they said earlier.] IMO all p2p platforms will need to increase their rates to restore the previous differential versus FSCS accounts. Even then investors would need to be well diversified to be able to absorb inevitable losses so I could not recommend anyone starting now. p2p has been good to me but the good days are over.
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Post by Ace on Oct 14, 2022 11:34:56 GMT
Yep, plenty of good loans out there. 😉 But also some (well at least one that I hold) that seems certain to end up in a substantial loss, but CP kick the can down the road, thus increasing the eventual loss due to Administrator's fees, rather than fess up and bite the bullet now. IMO all p2p platforms will need to increase their rates to restore the previous differential versus FSCS accounts. Even then investors would need to be well diversified to be able to absorb inevitable losses so I could not recommend anyone starting now. p2p has been good to me but the good days are over. True, there are definitely bad loans out there. I can't comment on that specific loan as I'm not in it (purely due to luck), but any platform that has only 1 likely partial loss out of 581 loans over 8 years gets a thumbs up from me.
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Post by verunce on Oct 14, 2022 20:52:58 GMT
I'd definitely prefer anyone else's opinion rather than theirs! Well, if you are chasing rates like 10%, then you better check out Ace performance report. I am sure Ace has some active investment >10%, even some active paying live loans from a winddown platform like FC are over 15% if you know how to cherry pick the good ones with a time machine. Unless you spend a lot of time monitoring your p2p account and loans, p2p products are not the same as any other investment products. It's not always easy to understand the game change when platforms introduce new T&Cs. It also takes time to learn about the nuts and bolts of each platform, you may not fully understand how the platform fully works with your money in a short period. The only stop loss is at -100%, you could lose it all. I wasn't chasing any specific rate really. It's just that I was quite impressed with the 10% average return rate that 4thway gave Crowdproperty. Being the real interest rate around 7%, which is roughly what I remember it was 2 years ago, then it doesn't make much sense if much safer products are giving 4% interest rates. I am quite familiar with p2p already, as I have been investing in european sites for around 4 years. But it really intrigues me because I feel like I get a bit of negativity when I read about them here, whereas my common sense tells me that they should be safer than european sites. I might be completely wrong by the looks of it!
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Post by verunce on Oct 14, 2022 20:55:20 GMT
Is that your average interest in the past few years? I guess those rates from 4thway could be from the most recent projects?The average rate at the moment is probably just above 7%. You can technically earn 10%: CP charges 2% penalty interest on late loans and passes that on to the investor, so if a loan's standard rate was 8%, you'd earn 10% during the period it was late. Other P2P operators tend not to charge, or to pass on, this penalty. Against that, there is frequently a lag between pledging money and earning interest on CP, so your real return in many cases will actually be lower than the advertised rate. No idea where that rate must have come from then! In that case, I would probably invest a larger amount in something like Raisin/Aldermore and end up getting a similar income...
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
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Post by littleoldlady on Oct 14, 2022 21:44:43 GMT
I was considering putting some money on Crowdproperty, which seems to be offering 10% interest according to 4thway. ! And coincidentally predicting 10% losses in the economic environment which appears imminent. (This is what their risk score of 5 means).
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Post by Ace on Oct 15, 2022 7:25:03 GMT
I was considering putting some money on Crowdproperty, which seems to be offering 10% interest according to 4thway. ! And coincidentally predicting 10% losses in the economic environment which appears imminent. (This is what their risk score of 5 means). That assumes a house price crash resulting in sales at 55% below their valuations.
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