angrysaveruk
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Say No To T.D.S
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Post by angrysaveruk on Nov 18, 2016 15:14:27 GMT
Having been an investor in P2P for about 3 years now I am starting to make my exit - in that time I have made a pretty nice return given the alternatives but I am starting to get cold feet about it. Falling interest rates, uncertainty about the credit worthiness of borrowers, profitability of the platforms and the risk of another financial crisis on the horizon have made me decide to slowly put my investments back into cash and wait and see. The world seems to be in a state of flux. I would be interested to hear how other people feel about their investments in P2P at the moment.
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archie
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Post by archie on Nov 18, 2016 16:38:59 GMT
Overall I'm still increasing P2P investments.
I have reduced the amounts invested in platforms where it's difficult to sell.
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adrianc
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Post by adrianc on Nov 18, 2016 16:48:28 GMT
Static, but moving around between platforms.
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kaya
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Post by kaya on Nov 18, 2016 16:55:46 GMT
Okay for another year at least, I think.
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Post by mrclondon on Nov 18, 2016 17:10:01 GMT
I'm still increasing p2p investments by re-investing the interest. I have a max of 1% of my p2p investments in any one loan, I'm split across multiple platforms and I reject a fair proportion of loans following my own due dilligence. For now the proportion of my loans defaulting is stable, and recovery of defaulted loans running ahead of my assumptions.
In 2016 I have had just one loan default which looks like it will be a significant capital loss (FCF on TC which may be a total loss) and that one is a failing of my due dilligence as it's risk as 2nd charge balance sheet security was clearly way above my risk threshold. The other dozen or so defaults this year should all recover at least 80% of capital oustanding
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Jeepers
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Post by Jeepers on Nov 18, 2016 19:59:43 GMT
I'm also looking for alternatives, my overall return over the past 18 months has been about 12/13% with no losses and often wonder, how much longer can it last?
The trouble with P2P is the good borrowers refinance elsewhere and the bad ones default.
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hazellend
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Post by hazellend on Nov 18, 2016 20:01:24 GMT
My spouse is a non earner so we enjoy 16k tax free income from P2P at 12% on our holdings.
Even with significant losses nothing will come close.
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Jeepers
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Post by Jeepers on Nov 18, 2016 20:08:07 GMT
My spouse is a non earner so we enjoy 16k tax free income from P2P at 12% on our holdings. Even with significant losses nothing will come close. You're entitled to £17k tax free savings interest as a non-earner.
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Post by BrianC on Nov 18, 2016 20:16:29 GMT
12% with no defaults  Where is that?? |
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Jeepers
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Post by Jeepers on Nov 18, 2016 20:19:47 GMT
12% with no defaults Where is that?? Mainly SS, got a bit on MT... had a dabble on FS but quickly got out of the fire exit there as defaults on loans which I wasn't in were coming in thick and fast! I cherry pick the best loans and avoid the rest. I don't believe in eggs and baskets, my eggs go in the strongest ones not spread out among the ones with holes in!
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hazellend
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Post by hazellend on Nov 18, 2016 20:48:47 GMT
My spouse is a non earner so we enjoy 16k tax free income from P2P at 12% on our holdings. Even with significant losses nothing will come close. You're entitled to £17k tax free savings interest as a non-earner. Awesome, even better!
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angrysaveruk
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Post by angrysaveruk on Nov 19, 2016 10:37:12 GMT
I'm also looking for alternatives, my overall return over the past 18 months has been about 12/13% with no losses and often wonder, how much longer can it last? The trouble with P2P is the good borrowers refinance elsewhere and the bad ones default. The question is why are people borrowing at these rates if finance from banks is so cheap (unsecured personal loans for 3%).
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Nov 19, 2016 14:47:25 GMT
12% with no defaults Where is that?? Mainly SS, got a bit on MT... had a dabble on FS but quickly got out of the fire exit there as defaults on loans which I wasn't in were coming in thick and fast! I cherry pick the best loans and avoid the rest. I don't believe in eggs and baskets, my eggs go in the strongest ones not spread out among the ones with holes in! Are you holding any overdue loans in SS?
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Jeepers
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Post by Jeepers on Nov 20, 2016 9:26:30 GMT
Mainly SS, got a bit on MT... had a dabble on FS but quickly got out of the fire exit there as defaults on loans which I wasn't in were coming in thick and fast! I cherry pick the best loans and avoid the rest. I don't believe in eggs and baskets, my eggs go in the strongest ones not spread out among the ones with holes in! Are you holding any overdue loans in SS? No, shortest term is about 120 days.
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Post by brokenbiscuits on Nov 20, 2016 10:00:18 GMT
My spouse is a non earner so we enjoy 16k tax free income from P2P at 12% on our holdings. Even with significant losses nothing will come close. It's definitely not true to say nothing will come close to 12%. Even the low effort vanguard lifestrategy funds are coming in at 20% and above this year (80 and 100, although the 60 and 40 are still above 12%) Other funds I hold are returning 40% or so this year. P2p has its place and I've reshuffled back to the percentages i first allowed myself. The excess has gone into topping up mostly India as that's on a bit of a dip right now with this cash issue they have at the moment. It's all short term and should see massive returns over the next 30 years. Balanced portfolio that includes p2p with pre designed percentages. There's no upside when p2p does badly, you just lose Money. When funds do "badly" most of the time you just get to buy them cheaper to increase long term gain.
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