Author Topic: Anyone using P2P lending in Australia?  (Read 10467 times)

AliEli

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Anyone using P2P lending in Australia?
« on: May 02, 2016, 06:08:26 AM »
Hello MMM peeps :)

I was wondering whether any other Aussies are using ratesetter or society one lending platforms for investing?  I have been using Ratesetter for a few months but am not sure whether I want to put more money in to it.  Has anyone been using it for 12 months or more?  What experiences have you had?

mrcheese

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Re: Anyone using P2P lending in Australia?
« Reply #1 on: May 03, 2016, 01:03:10 AM »
I've joined ratesetter, but only a month ago. I did however just get my first income of $7.77 this week (whee!)
I found looking at the repayment schedule to be enlightening. If I never reinvest my capital, the real rate of return is more like 4.26% per annum. Still beats ING's 3.5%, though after today's RBA rate cut that may become 3.25% and I may consider putting a little more of my security-blankie money into ratesetter...

AliEli

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Re: Anyone using P2P lending in Australia?
« Reply #2 on: May 03, 2016, 03:08:13 AM »
I really like the aspect of being able to get a regular interest payment.  However, I do feel concerned about how safe the whole system is.  Everything I've read online has been really positive but friends and colleagues are all concerned about whether I'll get my money back.  I've only invested a few hundred so not big money... I'm testing the waters. 

cakie

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Re: Anyone using P2P lending in Australia?
« Reply #3 on: May 03, 2016, 06:12:19 AM »
I've been on it for a few months now. You can get a decent welcome bonus if you sign up with someone else's referral code, so my SO and I both set up accounts :P

Our investments are split 80/20, so we aim to have half of the 20% in VAF and half in Ratesetter. Right now we only have about $1.5k in RS. It's a risky investment, but we are early in accumulation phase...TBH, I see it as similar risk to other investments - I think the big real risk to your capital is if there is mass and sudden unemployment and loads of people default at once.

I was annoyed at xmas time, as it took a couple of weeks to reinvest some money. Nothing was being lent on the platform over public holidays, and the 5-year rate dropped to ~9%.

I have it set up to auto-reinvest, but it can just sit there. Sometimes, it goes on the market at the current market rate (e.g. 10%), but then immediately, the rate will drop lower, say 9.8%. Even though my reinvestment settings are fine with 9.8%, the money just sits there until the rate goes back up!

AliEli

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Re: Anyone using P2P lending in Australia?
« Reply #4 on: May 03, 2016, 06:42:20 AM »
I'm finding that the rate for 5-year loans tends to increase on either side of public holidays :)

Cakie, excuse my ignorance, but what is VAF?

syednaeemul

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Re: Anyone using P2P lending in Australia?
« Reply #5 on: May 04, 2016, 12:57:36 AM »
I've been on Ratesetter for 4 months, just been doing the super low 1-month loans on auto-reinvest. Once a year's up I'll start putting more in.

AliEli

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Re: Anyone using P2P lending in Australia?
« Reply #6 on: May 04, 2016, 03:17:11 AM »
Is there a reason that you are waiting a year before putting more money in?  Are you not confident in the platform?

marty998

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Re: Anyone using P2P lending in Australia?
« Reply #7 on: May 04, 2016, 03:21:02 AM »
I'm finding that the rate for 5-year loans tends to increase on either side of public holidays :)

Cakie, excuse my ignorance, but what is VAF?

Vanguard's Australian Fixed Interest ETF.