jfm
Member of DD Central
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Post by jfm on Jan 3, 2016 8:21:13 GMT
My last house purchase at the start of '91 was on 14% that quickly went to 15%. On normal maximum income multiple at that time of 3.5X. I bet on rates reducing quickly or serious inflation giving me a pay rise. It did start coming down after a few months.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jan 3, 2016 8:40:36 GMT
What was the relationshipship between average salary & average house price in those days? Was it similar to what we have today, as that would be a factor in the discussion also?
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Post by meledor on Jan 4, 2016 10:52:40 GMT
I agree with those who suggest there is no need to "improve" the secondary market by incorporating premiums/discounts.
Saving Stream's stated primary aim for the SM is to provide a means whereby an investor can exit quickly if desired:
"It is our opinion that the ability to diversify your portfolio through the purchase of loan parts that become available on the secondary market is of secondary importance to that of having a liquid mechanism with which to divest oneself quickly if necessary. At the moment demand is outstripping supply. It is as simple as that."
p2pindependentforum.com/thread/702/on-sm?page=35 At the moment the SM works pretty well in meeting that primary objective so there is no reason for change for change's sake.
I appreciate there are other platforms which may have different objectives for their SMs in terms of offering a mechanism whereby supply and demand are balanced - Ablrate has been mentioned - which was the first P2P platform I used and is still one of three I am still looking to put money in. But you have to question the relevance when it has had very poor deal flow in the last 12 months - its total completed loans at £3.9m is the same size as a single moderately sized loan at Saving Stream. I have not used Ablrate's SM at all but I use Saving Stream's regularly and the main reason for this is the size of deal flow in the primary market.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Jan 4, 2016 11:05:46 GMT
Any chance we could put this debate to bed,at least for now? One of the main attractions of SS currently is CONFIDENCE in the liquidity of the SM. Now is definitely NOT the time to do anything that could undermine this confidence. Obviously if conditions change then I'm sure SS will be flexible and responsive enough to respond accordingly.But for now why can't just leave bloody well alone?
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Post by Financial Thing on Jan 4, 2016 12:52:42 GMT
The sucess of SS is allowing any investor simple access to high risk/reward investments. I fear this will also be their ultimate downfall. If you find buying or selling at premium/discount intimidating, I think you should be asking yourself what you're doing on a platform like SS. High interest bridging loans or "hard money" are pretty standard in the real estate development world. I've used them before. I don't consider most SS opportunities high risk. The highest risks are that the property market goes pop, loan fraud, valuations are too high or SS goes bust and leaves us with an admin / legal nightmare chasing after owed loan pieces. Every property owners I've know doesn't want to default, especially on low LTV loans.
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