|
|
Post by oldnick on Sept 3, 2017 9:34:42 GMT
But try and avoid cars and the odd dubious commercial property. 😉 why avoid cars? There is a school of thought in the media, and echoed on this forum, that too much credit has been made easily accessible for the purchase of new and used cars. A credit crunch might cause a lot of these cars to be repossessed and some p2p loans (both to individuals and car dealers) will then become unrecoverable. (It can be quite a task to catch all of the interesting snippets on this forum, particularly when they appear on sub boards you don't frequent, but you may find it worth looking at 'Recent' on the blue bar at the top of the page. You'll still have to speed-read through some twaddle, but you won't miss the gems.)
|
|
annie
Posts: 45 
Likes: 16
|
Post by annie on Sept 3, 2017 11:00:29 GMT
I agree with @wallstreet, if you need the capital protected for the next 12 months, go 'boring'. Include premium bonds if you need a monthly adrenalin rush!
By all means put a toe in the water of a few P2P but I am almost out (thanks to RS's debacle which forced them to offer 'get out of jail free')
I think the sectors rush for the c£1/3T in cash ISA funds, with uneducated lenders accepting low rates will see at least a couple of platform mergers/ crashes. Are you willing to gamble it's not the ones you are invested in?
|
|
|
|
Post by df on Sept 3, 2017 15:54:23 GMT
There is a school of thought in the media, and echoed on this forum, that too much credit has been made easily accessible for the purchase of new and used cars. A credit crunch might cause a lot of these cars to be repossessed and some p2p loans (both to individuals and car dealers) will then become unrecoverable. Credit crunch can also cause problems with property and SME loans. Following media reports, it is best not to invest in anything. I prefer diversification across variety of loans and not spending much time on media speculations. In theory cars should be as recoverable as properties, at least some capital can be recovered from auction sales.
|
|
stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447 
Likes: 945
|
Post by stub8535 on Sept 3, 2017 16:39:40 GMT
There is a school of thought in the media, and echoed on this forum, that too much credit has been made easily accessible for the purchase of new and used cars. A credit crunch might cause a lot of these cars to be repossessed and some p2p loans (both to individuals and car dealers) will then become unrecoverable. (It can be quite a task to catch all of the interesting snippets on this forum, particularly when they appear on sub boards you don't frequent, but you may find it worth looking at 'Recent' on the blue bar at the top of the page. You'll still have to speed-read through some twaddle, but you won't miss the gems.) No need to avoid cars. The car loans need to be taken on a contract by contract basis in order to gauge the risk. A loan, or series of loans, to individuals on a hire purchase agreement basis has a different risk than a company loan to a garage with an all assets debenture and pg as collateral. Then there is the car stocking loans where very tight control on stock movements against a list is maintained weekly. Finally there is the case of a vehicle being taken into the platforms possession for the loans duration only to be returned once the loan and interest have been repaid. All carry risk bit some of the scenarios reduce the risk level. You then choose your comfort level that "allows you to sleep at night".
|
|
|
|
Post by df on Sept 3, 2017 17:11:22 GMT
Have a look at Collateral (12 to 15%), there are plenty of decent loans on there. You can put the full 200K on there, and there is some cashback available Is there? I've looked at Collateral a few times but there are not many loans. There's only been 2 on the PM for the past few days and another few on the SM (woth a few days remaining). I wouldn't risk diversifying between so few loans for such a short length of time (and in such high risk loans). In deed, not many loans. I could be that some people don't register that many "new" loans are just further tranches of the same loan. It is a very sound platform, but I wouldn't put all my p2p eggs in one basket. I have about 7% of my p2p funds in COL, would be happy to increase, but diversification is my priority.
|
|
|
|
Post by df on Sept 3, 2017 17:25:06 GMT
I agree with @wallstreet , if you need the capital protected for the next 12 months, go 'boring'. Include premium bonds if you need a monthly adrenalin rush! By all means put a toe in the water of a few P2P but I am almost out (thanks to RS's debacle which forced them to offer 'get out of jail free') I think the sectors rush for the c£1/3T in cash ISA funds, with uneducated lenders accepting low rates will see at least a couple of platform mergers/ crashes. Are you willing to gamble it's not the ones you are invested in? I don't think RS would be suitable in this case, the rates are far too low and unpredictable... but why do you think there is a scope for platform mergers?
|
|
annie
Posts: 45
Likes: 16
|
Post by annie on Sept 3, 2017 17:54:59 GMT
Just an opinion on the maturity of the marketplace. Like other industries, seen the slow start, rapid increase in new entrants (platforms not lenders) and next a reduction as the poorer performers fail to grow profitably. This is the stage I think P2P is approaching in next 12 to 18 months. Add to this the introduction of government 'endorsement' by allowing tax relief (ISA) and there will be a rush of platforms direct selling to chase the cash.
|
|
|
|
Post by df on Sept 3, 2017 19:16:38 GMT
Just an opinion on the maturity of the marketplace. Like other industries, seen the slow start, rapid increase in new entrants (platforms not lenders) and next a reduction as the poorer performers fail to grow profitably. This is the stage I think P2P is approaching in next 12 to 18 months. Add to this the introduction of government 'endorsement' by allowing tax relief (ISA) and there will be a rush of platforms direct selling to chase the cash. I think rapid increase was in both, platforms and lenders. Long term reduction of interest rates by BoE brought them in. I think p2p industry will be safe for a while, there is no sign of returning to 5.75%, as it was 10 years ago, in foreseen future. I can't imagine them buying each other in next 18 months, but you might be right, who knows?
|
|
|
|
Post by dingdong on Sept 3, 2017 20:08:21 GMT
The Telegraph reported today that at least a third of the cabinet now believe no Brexit deal will be reached and we will therefore crash out. I'm not sure any investment would be safe in that event and we'd be in for Black Monday mark 2.
I'm currently reducing all my investments until we have more certainty over Brexit and wouldn't put money in any platform for a long period at this point.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
|
Post by littleoldlady on Sept 3, 2017 20:19:47 GMT
Put 50k into Premium Bonds. You will probably get c1% but might get lucky and zero risk in cash terms. Putting Collateral and risk averse together is an oxymoron.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Sept 3, 2017 20:41:08 GMT
The Telegraph reported today that at least a third of the cabinet now believe no Brexit deal will be reached and we will therefore crash out. I'm not sure any investment would be safe in that event and we'd be in for Black Monday mark 2. I'm currently reducing all my investments until we have more certainty over Brexit and wouldn't put money in any platform for a long period at this point. So you are 100% cash. Brexit really isn't that scary in my opinion. "Crashing out" means same deal as Norway
|
|
|
|
Post by bracknellboy on Sept 3, 2017 21:13:03 GMT
The Telegraph reported today that at least a third of the cabinet now believe no Brexit deal will be reached and we will therefore crash out. I'm not sure any investment would be safe in that event and we'd be in for Black Monday mark 2. I'm currently reducing all my investments until we have more certainty over Brexit and wouldn't put money in any platform for a long period at this point. So you are 100% cash. Brexit really isn't that scary in my opinion. "Crashing out" means same deal as Norway Ummm, where did yoiu get that idea from ? Apart from the fact that the nature of the future relationship is not simply the UK's to decide (there is as I recall another party involved), Norway is a member of EEA and thereby EFTA. EFTA membership requires, amongst other things, free movement of labour. That is a complete red line for Brexit proponents (Norway also happens to be a Schengen member, double red line).
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Sept 3, 2017 21:36:47 GMT
It doesn't matter what Brexit proponents want. Without a deal we revert to WTO which means Europe has to offer trade which is as favourable as with its most favourable trading partner.
Still not as good as what we have now but eurizone would likely want a better trading deal anyway.
|
|
carolus
Member of DD Central
Posts: 204
Likes: 191
|
Post by carolus on Sept 3, 2017 22:06:38 GMT
It doesn't matter what Brexit proponents want. Without a deal we revert to WTO which means Europe has to offer trade which is as favourable as with its most favourable trading partner. Still not as good as what we have now but eurizone would likely want a better trading deal anyway. Most favoured nation status has exceptions though - in particular you are allowed to set up free trade area and then discriminate against countries from outside the bloc. Since Norway is part of a free trade area with the EU (via the EEA), were the UK to drop out of the EU without a deal and attempt to trade under WTO rules, the EU would be under no obligation to treat us in the same way as Norway. It's true the EU would probably *like* a better deal than WTO rules with us, but we need it more than they do, and I am not filled with confidence that the current approach is going to lead anywhere at all.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Sept 3, 2017 22:24:47 GMT
It doesn't matter what Brexit proponents want. Without a deal we revert to WTO which means Europe has to offer trade which is as favourable as with its most favourable trading partner. Still not as good as what we have now but eurizone would likely want a better trading deal anyway. Most favoured nation status has exceptions though - in particular you are allowed to set up free trade area and then discriminate against countries from outside the bloc. Since Norway is part of a free trade area with the EU (via the EEA), were the UK to drop out of the EU without a deal and attempt to trade under WTO rules, the EU would be under no obligation to treat us in the same way as Norway. It's true the EU would probably *like* a better deal than WTO rules with us, but we need it more than they do, and I am not filled with confidence that the current approach is going to lead anywhere at all. Not sure we do need it more than they do, but I'm no expert. A trade war would be very bad for europe and the UK. Agree the current approach isn't going to lead anywhere. Branier is being allowed to single handedly destroy any hope of a reasonable deal. Hopefully, he will be pressured by the euro leaders to stop playing his attempt at hard ball. Seems ridiculous we can't come to a decent agreement without all the BS.
|
|
