Author Topic: P2P Lending & The House Crowd  (Read 997 times)

UKMustache

  • Stubble
  • **
  • Posts: 173
P2P Lending & The House Crowd
« on: January 13, 2018, 06:25:14 AM »
We've used a peer to peer lending site for some of our mid-term cash savings for a few years.  The returns have been reasonable (circa 4-5%) however the level of returns has been dropping steadily over the last 18 months or so (now circa 3.6%).

I'm aware there's an opportunity cost to diversification away from the stock market but this is cash we're likely to want for a second BTL purchase in a couple of years (not an ideal stock market investment time-frame).

I've been following 'the house crowd' for a couple of years and the reviews always seem largely positive, the stated returns are between 7-10% and their valuations are normally pretty solid.  They've recently started offering bridging finance over relatively short terms (5-12 months) with the same sort of rates.

I wondered if anyone here had used this (or any other) property crowdfunding sites, did you lose your shirt or are you an advocate?
« Last Edit: January 13, 2018, 06:58:45 AM by UKMustache »

Playing with Fire UK

  • Handlebar Stache
  • *****
  • Posts: 2294
Re: P2P Lending & The House Crowd
« Reply #1 on: January 14, 2018, 04:55:33 AM »
Huw at Financially Free by Forty and thefirestarter have both done blog posts on P2P housing - thefirestarter's were paid but Huw's weren't.

I'd want a higher rate for a bridging loan, they are messier than other loans and things can go wrong.

I'm winding down on P2P, it's starting to feel like it did before the 2007/08 credit crunch (gut feel).

UKMustache

  • Stubble
  • **
  • Posts: 173
Re: P2P Lending & The House Crowd
« Reply #2 on: January 14, 2018, 05:06:41 AM »
Huw at Financially Free by Forty and thefirestarter have both done blog posts on P2P housing - thefirestarter's were paid but Huw's weren't.

That's great thanks, I'll take a look.

I'd want a higher rate for a bridging loan, they are messier than other loans and things can go wrong.

I've taken that into consideration, it's the length of term that makes it attractive and the risk sort of balances that out.

I'm winding down on P2P, it's starting to feel like it did before the 2007/08 credit crunch (gut feel).

I wasn't financially savvy back then (in fact I was about to graduate) so I haven't seen a direct comparison but I agree that everything (stocks, house prices, p2p, etc) is seemingly very frothy at the moment.

frugledoc

  • Pencil Stache
  • ****
  • Posts: 557
Re: P2P Lending & The House Crowd
« Reply #3 on: January 14, 2018, 02:05:26 PM »
Check out http://p2pindependentforum.com

I have a somewhat crazy amount invested in P2P loans 10-15%.

I have diversified across 4 sites and approx 2% per loan.

My favoured sites are Ablrate (best by far),  then moneything, collateral and Lendy.

Itís a bit like the Wild West out there, so tread carefully.

I am attracted to the sector as my wife is a non earner so we can earn up
to 17,000 per year tax free due to a tax perk called starting rate for savings.

However, Iím going to try and reduce my exposure as I am losing confidence in the whole sector mainly due to dodgy valuations from stupid/corrupt RICS valuers.

dreams_and_discoveries

  • Pencil Stache
  • ****
  • Posts: 932
  • Location: London, UK
Re: P2P Lending & The House Crowd
« Reply #4 on: January 14, 2018, 03:14:18 PM »
I've only got mainstream P2P, and I'm running them down and putting the money into the market - I've got Ratesetter at over 6% interest, and 4.5% at Zopa, so letting them come to their natural end - the rates you get now are no longer worth the risk in my opinion.

As for property, personally I think there are a rocky few years ahead....

financialfreedom

  • 5 O'Clock Shadow
  • *
  • Posts: 27
  • Age: 36
  • Location: UK
Re: P2P Lending & The House Crowd
« Reply #5 on: January 15, 2018, 06:52:01 AM »
We use propertypartner.co, especially their new purpose built student properties. Commercial coming soon.

Property might be in for a rough ride, but students will still go to uni, and the parents guarantee the rent!