mikeb
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Post by mikeb on Mar 24, 2015 20:15:48 GMT
Why do some of you (apparently) buy into the second tranche rather than just buying more of the first tranche when it was open? Goldservice - I buy to my diversification limit, but immediately put most/all of the parts up for sale (usually at par, i.e. to autobidders) .. if any actually sell (and they usually do, slowly) then I repurchase in later tranches , what GSV3MIaC said, plus not being able to free up older loan parts to bid in a property cashback bonanza. Sometimes it gets filled before I hit my limit, so will pick up more in a 2nd tranche (if there's still cashbakc!)
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Post by GSV3MIaC on Mar 24, 2015 20:52:41 GMT
plus not being able to free up older loan parts to bid in a property cashback bonanza. Ah, most of my parts are liquid to the point of being superfluid (will climb out of the account and roam around on their own, even at 3% markup, if not restrained) so I've not had that problem .. the only ones which are hard to shift are other property loans. I should have mentioned that while my diversity goal for any one property loan may be higher than normal (2-5%), I also worry about =total= property loans, because a) they are not very liquid, b) if/when there is a property crash, they'll all go down the pan in synch. I really don't want too large slices of anything, whether property, windfarms (yuk!), airplanes, or whatever. Several of the FC property deals are also to the same person/people, albeit under different single project company names, so even the 1% autobidders may be diversity criminals by some measures.
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fasty
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Post by fasty on Mar 24, 2015 21:23:46 GMT
Strongly agree with GSV3MIaC about realistic diversity. I'd also add that rather than twiddling one's thumbs impatiently waiting for higher rates to return, now seems to be a great opportunity to dispose of older/risky loan parts or simply those with poor returns.
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blender
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Post by blender on Mar 24, 2015 21:26:18 GMT
This is all good sensible advice, more sensible than my practice.
I find it is worth selling older parts at a modest discount to get another 2% - and have shifted a lot of old property parts to buying bots (not yours I hope GSV) during this latest feeding frenzy. Better of course to sell at par, but that is a background task.
So far I have never got to the point of a property loan repaying due to completion of a project. Some have refinanced and repaid. Many loans I have sold completely on the SM, and so do not know the end result.
Have any property loans repaid on completion yet? Or is this still terra incognita? I have some with 6 months to go which I will probably hold (by which I mean just list at par).
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Post by GSV3MIaC on Mar 24, 2015 22:09:10 GMT
I don't have a SM buybot running, so I am safe from accidentally buying discounted property loans, or dented parts. There are a couple out there which will buy literally anything** if the discount is 2.5% or more.
** well up to £100, and down to 4% buyer rate, anyway. 8>.
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blender
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Post by blender on Mar 24, 2015 23:43:52 GMT
There were property buying bots which would bite at a discount of 0.5% on certain loans - but I think they have just noticed the 2% cash backs.
It is good to know that there are bots which will help those desperate to cash in their portfolios - but not so go for those who have made the ultimate listing error, selecting the wrong 3%.
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Post by GSV3MIaC on Mar 25, 2015 8:43:32 GMT
Yes, I could wish the sell page was a bit less error prone .. Maybe a tick box or radio button for sell at discount, with just 0-3% on the dropdown. Better yet a warning (or option for one) if selling at better than the best current offer maybe. Or autosell option to 'sell at best' (rather than always at par, which is silly).
Not that these bother me personally, because most of my listings are done automagically, but that doesn't stop me wishing for better for others.
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coop
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Post by coop on Mar 25, 2015 19:10:01 GMT
Since those last two property loans went so quick I fully expect Farcical Charges to chance their arm at 1 or possibly 1.5% CB next time...
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min
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Post by min on Mar 30, 2015 11:01:46 GMT
Since those last two property loans went so quick I fully expect Farcical Charges to chance their arm at 1 or possibly 1.5% CB next time... Pretty accurate- 11945 just gone up with 1%. Let's see how it goes.
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SteveT
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Post by SteveT on Mar 30, 2015 11:34:45 GMT
Nope, I'm not biting!
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coop
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Post by coop on Mar 30, 2015 11:48:54 GMT
1% isn't enough for me either.
I don't want to hold to term so 1% becomes 0.75% after selling fee.
Also for 2% I'm prepared to discount old property parts to get the cashback (.25% seller fee; .5% discount and .25% seller fee to sell the new part still leaves 1% CB plus interest); but this is obviously pointless for 1% CB.
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blender
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Post by blender on Mar 30, 2015 12:50:42 GMT
1% isn't enough for me either. I don't want to hold to term so 1% becomes 0.75% after selling fee. Also for 2% I'm prepared to discount old property parts to get the cashback (.25% seller fee; .5% discount and .25% seller fee to sell the new part still leaves 1% CB plus interest); but this is obviously pointless for 1% CB. Same here, but I am still selling the 0.5% discounted parts to pay back a cash deposit to buy the 2% first tranche of this current loan. If it does not go at 1% it will be back at 2%. Meanwhile I have registered for Ablrate - my first serious look at another p2p platform.
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coop
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Post by coop on Mar 30, 2015 13:27:18 GMT
So in essence you deposit money to buy 2% CB; sell at a loss of .75% including fee to make a profit of 1.15% plus interest. Interesting. I have just created these fag packet APR calculations whilst thinking about it. I have assumed a generous 2 weeks "dead" time and an apr of 8% on the loan; a 0.5% discount and the all important and elusive 2% cashback. I've done this for my own research more than anything but hopefully someone finds it useful! APR (2 weeks dead time) Cashback after fees APR Total APR Assuming sale after exactly: 8% 1.15% 2 Weeks 0 29.90% 29.90%4 Weeks 4% 13.80% 17.80% 8 Weeks 6% 7.48% 13.48% 12 Weeks 6.67% 4.98% 11.65% 16 Weeks 7% 3.74% 10.74% 20 Weeks 7.20% 2.99% 10.19% 24 Weeks 7.33% 2.49% 9.83% 28 Weeks 7.43% 2.14% 9.57% Please accept my apologies for the lazy C&P from excel  |
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Post by goldservice on Mar 30, 2015 13:57:49 GMT
blender: Meanwhile I have registered for Ablrate - my first serious look at another p2p platform.
From one Flying Circus to another, eh? (I see that Ablrate is in part an aviation specialist.)
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 30, 2015 14:09:29 GMT
blender: Meanwhile I have registered for Ablrate - my first serious look at another p2p platform. From one Flying Circus to another, eh? (I see that Ablrate is in part an aviation specialist.) And at the moment showing itself to be more Von Richthofen than Monty Python - long may it continue 
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