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 Jun 5, 2016 17:26:10 GMT
Almost all of the loans I have invested in are now available on the SM at a discount of up to 2%, suggesting I would have done better by not buying at the time of launch. Does this indicate a loss of confidence in the platform?
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ben
Posts: 2,020 
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Post by ben on Jun 5, 2016 17:31:22 GMT
Almost all of the loans I have invested in are now available on the SM at a discount of up to 2%, suggesting I would have done better by not buying at the time of launch. Does this indicate a loss of confidence in the platform? It generally works out better when a loan is nearer completion to sell on the secondary market ie tax for a lot of people. It aslo reduces the risk of having a defualt and losing capital or having to wait a month or two until the asset is sold. I just wish they would do a few less property loans as I can not see how the can be assessing all of these well.
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Post by earthbound on Jun 5, 2016 17:36:40 GMT
littleoldlady I lost confidence when FS decided to use a simple pawn set up to sell property PBLs .. I do not believe that FS is sustainable in its present form, i have been winding down for the last month or so , fortunately, barring the scottish thingy i am now out of all property on the FS platform. I am quite heavily in the 2 boaty ones which look like they are both going to be ok... exactly what i expected.. (not a surprise, because this stuff is what FS are good at) That said , i do like FS for the stuff it was set up initially to do, and i will keep a bit in there for that reason, But property, no way.
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Post by Deleted on Jun 5, 2016 18:12:48 GMT
watch the 6 yachts very carefully
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SteveT
Member of DD Central
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Post by SteveT on Jun 5, 2016 18:16:50 GMT
Almost all of the loans I have invested in are now available on the SM at a discount of up to 2%, suggesting I would have done better by not buying at the time of launch. Does this indicate a loss of confidence in the platform? It looks to me like someone is looking to free up a sizeable amount of cash quickly. Discounts of 2% are much larger than usually survive for long on the SM (1% is as high as I've usually seen offered). Remember also that a discount is needed to offset the additional tax liability you assume if you buy a part that's already several months old and pay the seller their accrued interest. At 1% discount, most lenders would still be wiser to invest at par when the loan begins (company lenders, however, may profit from the discount). At 2% discount with 80 days still to go and 55% LTV on a residential property, I doubt that will take long to sell.
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Post by earthbound on Jun 5, 2016 18:20:18 GMT
watch the 6 yachts very carefully @bobo Why?
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stevio
Member of DD Central
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Post by stevio on Jun 5, 2016 19:56:29 GMT
Almost all of the loans I have invested in are now available on the SM at a discount of up to 2%, suggesting I would have done better by not buying at the time of launch. Does this indicate a loss of confidence in the platform? It looks to me like someone is looking to free up a sizeable amount of cash quickly. Discounts of 2% are much larger than usually survive for long on the SM (1% is as high as I've usually seen offered). Remember also that a discount is needed to offset the additional tax liability you assume if you buy a part that's already several months old and pay the seller their accrued interest. At 1% discount, most lenders would still be wiser to invest at par when the loan begins (company lenders, however, may profit from the discount). At 2% discount with 80 days still to go and 55% LTV on a residential property, I doubt that will take long to sell. 20% sounds to good to be true, even for just 2.5 months. I can purchase through a company so tax not an issue, but anything else to watch out for here?
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Post by Deleted on Jun 5, 2016 20:20:33 GMT
watch the 6 yachts very carefully @bobo Why? Unusual to have basically a bunch of low value boats. Any "local class" sailing will be long gone, so no premium value, summer sailing now very active, not going in the water just shows that they are not being used, problems are not being found out. Engines (if present) not turned over, rigging not used etc etc. In a few months they will need to be back in storage. I've seen boats like that all over the UK. I would value them most highly on Nov 5th. :-)
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Post by earthbound on Jun 5, 2016 20:27:06 GMT
Unusual to have basically a bunch of low value boats. Any "local class" sailing will be long gone, so no premium value, summer sailing now very active, not going in the water just shows that they are not being used, problems are not being found out. Engines (if present) not turned over, rigging not used etc etc. In a few months they will need to be back in storage. I've seen boats like that all over the UK. I would value them most highly on Nov 5th. :-) @bobo thanks for that.. fortunately i haven't renewed , i'm not the type of 'guy' to hang around boats and boatyards, past experience not to be recommended. 
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