IFISAcava
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Post by IFISAcava on Sept 6, 2017 9:26:56 GMT
That's crazy! I was expecting less than 20% but not that low. There must be some huge account balances sitting idle on the platform now. Looks like the student property will be vastly oversubscribed too.... I had thought 10% or less very likely. It was the last for the 5% cashback, and was a great property, so I suspect many people put in large amounts not expecting to get much, but with the knowledge it would get them 5% cashback on all of August's buys.
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littonowl
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Post by littonowl on Sept 6, 2017 9:36:23 GMT
...and yet their new referral scheme is looking to attract people who invest a minimum of £10K ! Hardly going to improve the scale-back situation in future...
Maybe they need to start looking at offering properties on a first-come first served basis, with bid limits in place, at least those that do get their stakes will feel they're worthwhile, as no one is going to be happy with just 4%!
Would also remove the problem of cash drag, because I now have to hold a far bigger cash balance (earning nothing) than I really want, just to try and make the allocation after the inevitable scaleback worthwhile.
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snowmobile
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Post by snowmobile on Sept 6, 2017 9:47:28 GMT
...and yet their new referral scheme is looking to attract people who invest a minimum of £10K ! Hardly going to improve the scale-back situation in future... Maybe they need to start looking at offering properties on a first-come first served basis, with bid limits in place, at least those that do get their stakes will feel they're worthwhile, as no one is going to be happy with just 4%! Would also remove the problem of cash drag, because I now have to hold a far bigger cash balance (earning nothing) than I really want, just to try and make the allocation after the inevitable scaleback worthwhile. I agree, they're in danger of alienating their existing investors the way things are going. There is a point at which people will think it's not worthwhile even trying, due to the cash drag.
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rick24
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Post by rick24 on Sept 6, 2017 9:50:51 GMT
Had a bit of a chuckle when I saw my allocation (4.26% of requested amount). I put in more than usual, expecting less, so I suppose lots of people did the same. Tends to suggest there is lots of money sloshing around and PP will be wanting to divert as much as possible their way ("we're working hard to bring larger fundraising targets to the platform", as they say in their allocation email).
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IFISAcava
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Post by IFISAcava on Sept 6, 2017 9:52:02 GMT
That's crazy! I was expecting less than 20% but not that low. There must be some huge account balances sitting idle on the platform now. Looks like the student property will be vastly oversubscribed too.... it's a much larger loan (£1.6 million) with no cashback, so I wouldn't expect a massive oversubscription on this one.
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rick24
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Post by rick24 on Sept 6, 2017 9:58:24 GMT
That's crazy! I was expecting less than 20% but not that low. There must be some huge account balances sitting idle on the platform now. Looks like the student property will be vastly oversubscribed too.... it's a much larger loan (£1.6 million) with no cashback, so I wouldn't expect a massive oversubscription on this one. Nice dividend though.
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IFISAcava
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Post by IFISAcava on Sept 6, 2017 10:05:21 GMT
it's a much larger loan (£1.6 million) with no cashback, so I wouldn't expect a massive oversubscription on this one. Nice dividend though. yes indeed. Although the email says once again "start earning 6.70% from the moment you invest" whereas we know that the amount you prefund (which you can't undo so I would consider IS an "investment") doesn't earn any interest, and the prefund doesn't end for 2 weeks. So advice is leave any funding until the last day to avoid cash drag.
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IFISAcava
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Post by IFISAcava on Sept 6, 2017 10:11:25 GMT
it's a much larger loan (£1.6 million) with no cashback, so I wouldn't expect a massive oversubscription on this one. Nice dividend though. Looking at the recent deals tab, huge amounts going through into this property already!
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snowmobile
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Post by snowmobile on Sept 6, 2017 10:14:33 GMT
That's crazy! I was expecting less than 20% but not that low. There must be some huge account balances sitting idle on the platform now. Looks like the student property will be vastly oversubscribed too.... it's a much larger loan (£1.6 million) with no cashback, so I wouldn't expect a massive oversubscription on this one. True but it depends how much money is sitting on the platform idle after the scale back. The temptation to invest those funds straight into the student property will be strong I expect. It depends how much of the scale back was a result of higher amounts being invested through auto-invest, and therefore less available for non auto-invest purchases. PP are clearly trying to promote that scheme, to the detriment of investors who prefer to pick and choose their own investments.
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j
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Post by j on Sept 6, 2017 10:16:12 GMT
That's crazy! I was expecting less than 20% but not that low. There must be some huge account balances sitting idle on the platform now. Looks like the student property will be vastly oversubscribed too.... I had thought 10% or less very likely. It was the last for the 5% cashback, and was a great property, so I suspect many people put in large amounts not expecting to get much, but with the knowledge it would get them 5% cashback on all of August's buys. One bid stuck in my mind at the time that I saw was for over £16k!!! No wonder it was just over 4%. I put in a much higher pre-fund than usual myself expecting less but not this ridiculous amount which hs hardly made it worthwhile the effort. Must agree with some suggestions of max amounts being alowed per investor if massively oversubscribed
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Post by sayyestocress on Sept 6, 2017 10:18:53 GMT
I think this will steer people to using the auto-invest feature. It's probably what PP would prefer; a regular and predictable stream of money onto the platform. You do earn 3% on the cash not yet invested (so no cash drag if 3% is enough for you) and you aren't going to see scale back unless the unlikely (for now) event of auto-invest pot being higher than the listing value. You just have to hope you like the properties that come up or that they're enticing enough to offload them on the SM without a loss. This summer's listings has steered me down the auto-invest path; I simply cannot predict reliably how much I need to bid to get the amount I actually want...
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Steerpike
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Post by Steerpike on Sept 6, 2017 10:22:33 GMT
Wasn't this simply a last minute dash to get to £25k to qualify for the 5% cashback?
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IFISAcava
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Post by IFISAcava on Sept 6, 2017 10:29:37 GMT
I think this will steer people to using the auto-invest feature. It's probably what PP would prefer; a regular and predictable stream of money onto the platform. You do earn 3% on the cash not yet invested (so no cash drag if 3% is enough for you) and you aren't going to see scale back unless the unlikely (for now) event of auto-invest pot being higher than the listing value. You just have to hope you like the properties that come up or that they're enticing enough to offload them on the SM without a loss. This summer's listings has steered me down the auto-invest path; I simply cannot predict reliably how much I need to bid to get the amount I actually want... I don't like the idea in Autobid that a) you commit to investing in the next 5 properties that you haven't even seen and b) you have to invest the same amount in each. I suppose you could invest a smaller amount via autoinvest and then top up as appropriate for each property, but that still leaves you at the whims of variable scaleback. I think I will change my strategy to a) investing (even) more via the SM, which allows buying at a discount and less time until the 5 year exit point, and b) only going for PM when there are bonuses etc, accepting that this means exposure to extra scaleback. Reduces the amount PP raises from me for new purchases, but I suppose helps reduce said scaleback.
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IFISAcava
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Post by IFISAcava on Sept 6, 2017 10:30:25 GMT
Wasn't this simply a last minute dash to get to £25k to qualify for the 5% cashback? yes, but also a good, high yielding, low value property. Fatal combination.
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SteveT
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Post by SteveT on Sept 6, 2017 14:42:37 GMT
"Recent Trades" box currently lists some investments in the Exeter student block of £245k (!), £70k and £49k ...
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