|
Post by Financial Thing on Jan 9, 2016 18:35:26 GMT
Since I'm a simple man, can someone explain in simple terms...
1. If I have my planned 16/17 allowance of £15k in a non ISA Savings Account, can I transfer pieces of this money into 3 different p2pisa's or does it have to be all in one place?
2. If I have £15k in an ISA that holds shares, can I sell these shares and transfer this money into a p2p isa?
|
|
|
Post by Financial Thing on Jan 8, 2016 17:40:09 GMT
In other news, US Powerball lottery jackpot reaches $800m I'm going online to wangle a ticket and If I win, I'm never p2p lending again Oh and everyone here gets a nice gift.
|
|
|
Post by Financial Thing on Jan 8, 2016 15:49:35 GMT
And the return rates drop as the risk increases...reminds me of 2008.
|
|
|
Post by Financial Thing on Jan 7, 2016 22:37:30 GMT
In the unlikely event that anything like this should happen, ALL FCA P2P firms, are obliged to ensure that a 3rd party/other FCA licensed business/platform is in place to collect the loan repayments and repaid to lenders by way of a standard business continuation policy. Thanks for the information. Where is the information listed as to whom this 3rd party is for your company?
|
|
|
Post by Financial Thing on Jan 7, 2016 11:49:30 GMT
parag I'm considering investing in FE. Since your loan book is still smaller in size, can you tell me how you plan to expand? I suppose I'm mostly concerned a about how FE is financially staying afloat with such a small loan book? Thanks
|
|
|
Post by Financial Thing on Jan 6, 2016 23:45:08 GMT
This is my reworking of their illustration in the FAQ. It seems to be so much against lenders interests I'm starting to doubt the whole thing. I've emailed them. (Of course I'm quite probably wrong)t They do calculate the yield on the cash invested. Perhaps they should show the the yield on the cash invested value and yield on current property value seperately. I have to say the returns so far have been very good (capital gains + net yield on invested cash). Because of current high prices rental yields are always going to be a bit low unless you go with lower end property. I calculate gross yield for the market drayton property at 6.67% (56,100 annual rent / £840,000 property cost ) which seems okay to me? Can anybody explain how come stamp duty never seems to be more than 1%? The property cost isn't $840k, it's £884,000.
|
|
|
Post by Financial Thing on Jan 6, 2016 22:58:57 GMT
They prob. calculate yield based on cash invested rather than amount paid for the property? If the cash invested amount is lower, the yield looks better so it seems like a better deal. This is my reworking of their illustration in the FAQ. It seems to be so much against lenders interests I'm starting to doubt the whole thing. I've emailed them. (Of course I'm quite probably wrong) The purchase price is £840k + fees
|
|
|
Post by Financial Thing on Jan 6, 2016 20:10:45 GMT
"The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc. I'm going mad - I cannot find the "property page" with the mortgage info. However - I am an investor. I don't want to borrow money at 4% (I wouldn't mind lending it at 4% on 50% ltv). On the current proposition that adds 80K to the costs (5yr 4% 400K). The info is on the main page under the description
|
|
|
Post by Financial Thing on Jan 6, 2016 13:19:52 GMT
Another new property as the email says Our first property this year is aptly named Prospect Court - a fresh, modern-looking building of 10 flats, secured at a 14% discount to its RICS break-up value and offered with gearing for enhanced returns. With an attractive dividend yield of 4.44% this property is a great opportunity to diversify into the West Midlands. Ben - for tidiness sake can you change your profile so it declares that you are representing a platform I'm new to PP (but not new to p2p!). Are you thinking of putting a q&a on the site - for me this is at the very heart of p2p - being able to piggyback on other people's competences and expertise, and keeping you, the platform up to the highest standards, making sure you don't forget anything - practically all the platforms have had the experience of pulling or significantly changing some offers as a result of q&a, it is good for everyone. This offer TF9. As I understand it there is a mortgage for about half the purchase price - forgive me if I have missed it but on what terms? Are we vulnerable to interest rate changes? What is your reasoning (because I would have thought it would be better for us lenders not to be paying interest out)? As a niggle on the site - you are asking us to send a pre-order AFTER you have received funds. Why are you giving me the job of remembering to do it - I want to make the bank transfer and tell you what it is for at one and the same time, not to have to do the job in two stages separated by some hours. Please rethink this. (I suggest by saying the money has to be with you by X date) Any new on your moves into Europe From the property page re. mortgage: "The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.99%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast." In regards to gearing, as a real estate investor, IMO gearing is ok here because the risk is spread across hundreds of investors. Yes it is somewhat risky because vacancies and higher interest rates could reduce yield, but it's a risk worth taking since it's only 50% geared. Money is cheap at the moment so if you can borrow at 3.9%, why not. It will be a while before interest rates move. I would like to see specific info on the leases etc.
|
|
|
Post by Financial Thing on Jan 4, 2016 23:13:14 GMT
I see on the legal FAQ: "What happens if Emoney Union goes bust? In the unlikely event that this would happen, all Loan Agreements would remain in force and all loans would still be paid by the borrowers to the lenders via the protected client account, which is ring fenced from any Legal or Insolvency process. The monies held in the eProvision account are also protected, therefore providing additional resources and or revenues should they be ever needed." emoney Can you provide further information about this ring fencing? If I went to our website tomorrow and it was a blank space and your phone number was disconnected, where would I be able to access my loan agreements and who are the legal entities that would facilitate loan repayments? (It still amazes me people are willing to entrust their money into p2p companies without this information being transparently displayed)
|
|
|
Post by Financial Thing on Jan 4, 2016 22:05:30 GMT
less of a risk than shares, very small amounts in several loans, so spreading my investments as much as i can in this area, I think you should be aware that p2p is very risky compared to buying and holding shares for the long term. The riskiest part isn't the loans, it's the possibility of the p2p platform going out of business.
|
|
|
Post by Financial Thing on Jan 4, 2016 13:29:54 GMT
The majority of investors are happy with this arrangement. A small minority of one so far are not. I think this forum cannot and will not represent the majority of investors anyway (and I am one of the small ones BTW). The earlier system matched every request percentage-wise and that was fair, in the sense that everyone got the same xx% of their availability/declared interest. Now you have large unbalances percentage-wise and that is an implicit invitation to reduce the exposure to SS for people with larger availabilities. (people who had put aside 4-5-6k for this loan will now probably invest them on other networks). Of course for the future the only way forward is with bots. The old way wasn't that fair given the fact the we figured out the system and using over pre-funding would get you closer to your real allocation.
|
|
|
Post by Financial Thing on Jan 4, 2016 13:23:49 GMT
Glad I'm not SS dealing with trying to keep everyone happy which is an impossible task.
I like the new PF system.
What I don't understand is the SM speed. I see a piece pop up and disappear in less than 1 or 2 seconds. It's physically impossible to purchase that fast so surely automated systems are at work here?
|
|
|
Post by Financial Thing on Jan 4, 2016 12:52:42 GMT
The sucess of SS is allowing any investor simple access to high risk/reward investments. I fear this will also be their ultimate downfall. If you find buying or selling at premium/discount intimidating, I think you should be asking yourself what you're doing on a platform like SS. High interest bridging loans or "hard money" are pretty standard in the real estate development world. I've used them before. I don't consider most SS opportunities high risk. The highest risks are that the property market goes pop, loan fraud, valuations are too high or SS goes bust and leaves us with an admin / legal nightmare chasing after owed loan pieces. Every property owners I've know doesn't want to default, especially on low LTV loans.
|
|
|
Post by Financial Thing on Jan 4, 2016 3:37:20 GMT
The FTSE 100 is a relatively poor tracking product. I would rather put money into P2P than this index. Now the US trackers are a different story, much better performers over the long long long term. For me I factor in risk as a return weight. Yes p2p in its young infancy has performed for some investors but if you could average say 10% in an index fund, I can't see anybody choosing p2p over indexing because of the added risk. At least with an index fund share, you can be relatively certain that the indexes won't go bankrupt and take all your cash. I really wonder how many Trustbuddy investors still have money in p2p? The S&P500 was only down about .5% for the year and if you use dividend reinvestment, you are receiving lower priced shares which will benefit you when the market grows (if you have a buy and hold strategy). I think over the next xxxx amount of years, the US index funds will continue to perform as they have always done. You just have to be disciplined to keep buying through the peaks and valleys and hope when you need the cash, the market isn't correcting. Oh and with index funds, no time needed trying to pounce on good interest rates. P2P can involve a significant time investment. What you said about p2p having a place as a piece of an investment portfolio is spot on.
|
|