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Post by Financial Thing on Apr 20, 2016 15:48:17 GMT
Pat on the back mrclondon for your comments on commercial property values. My dad bought a market value high street retail S.E. property in 2006 that has dropped in value by 30%. When people hear commercial they tend to think stability. Not always the case. Properties are only worth what people will pay at the time it needs to be sold and prior valuations sometimes mean little.
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Post by Financial Thing on Apr 20, 2016 12:00:22 GMT
Or the housing, or commercial property, or whatever market goes pop. Great time to buy at a fat discount, although that's not currently an option with SS. If the platform can survive, sure.
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Post by Financial Thing on Apr 20, 2016 11:58:11 GMT
Loan Ref: 1891972919 - Royal Oak - Audemars Piguet
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Post by Financial Thing on Apr 20, 2016 1:56:00 GMT
I suspect that people don't quite realise the scale of the risk with SS. Very true. The risk associated with these 12% platforms is quite high. The longer one is invested, the more complacency kicks in. When the stock market goes pop and consumer confidence falls, the real test of p2p sustainability will begin.
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Post by Financial Thing on Apr 19, 2016 13:07:08 GMT
Somewhere along the way this ceased to be P2P; perhaps nobody noticed. The whole meaning of P2P is that you haven't got a platform in the middle that is engaged in leverage or financial engineering such as securitisations. Properly done there is nothing wrong with securitisations in the right situations, but P2P is not one of them. I don't know the details here but it looks like institutions were happy to pony up the money for the loans to be written on the basis of originate to distribute. When you know you are going to quickly sell on your exposure then the standard of creditworthiness checks is liable to slip as we discovered in 2008. This is reinforced by the fact that loan volume (rather than profit) continues to be the metric that everyone seems to use to gauge the success of a P2P platform.
For an alternative perspective see Geoff Miller's piece:
www.altfi.com/article/1893_new_model_for_less_exuberant_times
Geoff sees alternative finance as having reached an "inflexion point" and a balance sheet model as a solution to the problems of funding as the sector grows. Banks would provide funding to platforms which "could be achieved by writing loans on balance sheet, rather than on behalf of lenders, and then bringing in external investors to the extent that demand allows. Retaining at least part of every loan on balance sheet would deal with the “skin in the game” criticism continually thrown at the sector."
However the success of P2P has been based on platform trust and transparency. If we move to a balance sheet model we could have a situation where the platform is retained as a shop window but the best deals are done at the trade counter round the back and then that trust is going to disappear.
All of this is continue to play out favorably while the stock markets continue to prosper and complacency presides over logical thinking. But when things take a turn for the worse (a stock market correction), only then will we see these unsecured loan defaults rise and see if p2p can stand the true test.
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Post by Financial Thing on Apr 17, 2016 2:49:07 GMT
wiseclerk Thanks for posting the article. To me the risk levels of these Euro p2p sites offering mouth watering returns seems in the ultra high red flag range...31% returns are going to fall foul at some point. There have been some very interesting economic situations arising recently that have some investment pro's warning of an dire economic disaster much worse than in 2008. If (many believe more of a case of when) this happens, platforms offering ultra high rates will be the first to fall. I would say buyer beware.
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Post by Financial Thing on Apr 15, 2016 18:22:00 GMT
Not sure where these hoops are, I have one account which requires direct debits; I pay my phone, council tax, electricity etc and get good cash back. Most of the rest require only monthly deposit, easy, set up monthly sanding orders (just to be clear you only need to do this once), pay from bank one to bank 2, estimate expected interest in bank 2 account, pay the same amount + expected interest to bank 3, keep going until all accounts funded, pay last bank back to bank 1. This happens on a set day every month, all completed in short period of time usually before I get up, no intervention, no need to monitor anything as it funds will stay very close to capped rate.
You wore me out with all that "hooping"
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Post by Financial Thing on Apr 15, 2016 14:08:28 GMT
Is it just me who is finding the rates a little low compared to risk. Santander are giving me 3%, instant access and no risk. TSB give me 5%, instant access and no risk. Tesco give me 3% with the same. Given the risk we take on P2P would have thought the rates would reflect better given the time you have to tie your money up. Not seeing what the attraction is at the moment or am I missing something? Where is the fun in that? You can't play the markets, you can't stick it to the man (banker), you can't have a moan about the platform, you can't boast about having non-FSCS investments, etc.... I had a good laugh at this, especially the moaning about the platforms. Nice one westonkevRSIt's interesting to me how people still love to give the billionaire banks their money, for a measly 3%. What a pain having to jump through deposit and direct debit hoops to get a measly interest rates, plus you're forever watching the capped rate to make sure you don't go over. Plus I'm once again rewarding the giant corporations who helped cause an economic disaster meltdown and helped millions of people to lose billions from their retirement funds. So much for consumers voting with their feet and wallets.
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Post by Financial Thing on Apr 15, 2016 13:35:38 GMT
Time consuming if you're invested in many platforms no? I would not say so. I have a spreadsheet per platform. Perhaps the first one took half an hour to create. Converting to other platforms took about ten minutes a platform. For each subsequent deposit or withdrawal to/from a platform it must take all of a minute to add a line to the relevant spreadsheet. Ditto plugging in current value to get an answer. What if you're not making further deposits or withdrawals, just reinvesting, does this still work?
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Post by Financial Thing on Apr 15, 2016 11:31:47 GMT
MoneyThing Ed is there a way under My Loans to have loans pieces in the same loan consolidated to display one amount?
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Post by Financial Thing on Apr 15, 2016 11:24:05 GMT
Why not use a spreadsheet to calculate your XIRR (annualised return on investment)? One of the easiest ways to do that just involves tracking all deposits and withdrawals you make plus the current balance and automatically includes all fees as part of the calculation. Time consuming if you're invested in many platforms no?
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Post by Financial Thing on Apr 15, 2016 11:14:12 GMT
I seem to remember reading a couple of years ago that actual demand for resident parking places in inner London apartment blocks is 1 parking space per 5 apartments, when talking of bog-standard 2 bed apartments in the £500k-£750k range. When I was looking at properties 12 years ago (as an out of towner) I was astounded to see vast largely empty parking under each building, but in reality I only use my car once a month on average. I know of one block going up near me that has no parking spaces, and indeed a restrictive covenant in the deeds to prevent the overnight parking of a car owned by the resident in the London Borough entirely. The demand is for parking spaces than can be used during office hours by out of towners, and hence residents only parking spaces are of no use.
Seems like the parking spaces will be a loss then
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FundingSecure (FS) in Administration
Am I bovvered?
Apr 14, 2016 20:18:34 GMT
Post by Financial Thing on Apr 14, 2016 20:18:34 GMT
It will need a miracle for this one to be resolved quickly as the parking places can only be utilised by occupiers of the building above the car park. The building is in inner London, where many residents don't have cars.
Did FS state the spaces could only be used by residents? If true then these parking spaces will be worth less than the £20k valuation?
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Post by Financial Thing on Apr 14, 2016 18:17:15 GMT
Darn it MoneyThing , you're paying back completed loans plus interest, with no default...where's my pound of flesh bonus? Seriously though, well done and keep doing what you're doing.
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Post by Financial Thing on Apr 13, 2016 18:29:41 GMT
I'm sure this has been answered before but the forums search feature makes hunting down answers tricky.
If I were to sell a part on MT's SM, do I receive interest for days owed after it is sold? I know the buyer doesn't pay the interest so for example if I hold the loan for 28 days and then sell 3 days before an interest payments due, will MT pay me for the 28 days interest I held the loan part?
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