I had looked at them last year, but only E and F grades had seemed tempting. Attachment 9896
Since then they've had a C default, making their overall default rate across all risk grades and loans issued thus far to be 1.77% on a very flea base (https://www.zagga.co.nz/invest/rates-of-default ) vs 3.37% to date with Harmoney on comparatively an elephantine base, which is returning 10% RAR.
To August 2018, they had only lent approx $8 million in New Zealand and $61 million in Australia. ( https://www.interest.co.nz/personal-...vestors-are-nz). Have you taken any/all offered loans A1-F5, or just the more risky ones? If you have taken any Aussie loans too, are there any tax implications of Aussie interest earned?
The rates in your table are indicative only and are hardly adhered to at all. For example, in the table you have C4 at 7.54%. I have a C4 loan returning 14.39% net of fees (see attached). That is my highest return, the other loans are returning mostly between 6.79% and 10% (net of fees).
I do not pay much attention to the grades but more to the LVR and their credit ratings and l also scan through all the documents attached. I do look at all loans briefly and if I like one, then more closely at the documents. I commit $5k or more in each. Because they do not have that much investors yet, some of the loans ended up not filled and lapse. But it seems to be improving (more investors must be coming on board).
Not sure about the default you mentioned. One of mine did missed a monthly payment and had some trouble but in the end we got our money back with default interest as well as the LVR was very low and the borrower paid up rather than lose his asset. As the amounts are very large, they do monitor each and every loan very closely.
I am not investing in their Australia loans. Had not looked at that and no intention of doing so at the moment.
Having read thru Zagga's definition of default, I am sure that "that" C default mentioned was the same one that I had. And I got all my money back! So, Zagga's "default" is really Harmoney "30 days Arrears"
Having read thru Zagga's definition of default, I am sure that "that" C default mentioned was the same one that I had. And I got all my money back! So, Zagga's "default" is really Harmoney "30 days Arrears"
Thanks, cool bear. I gave them a call. Found out that they did a mortgagee sale on that defaulting C, and there was no loss of investment capital for anyone, so clean chit so far. Also, it appears NZ domiciled investors can't invest in Australian loans at the moment. Will read up on them more. Cheers
Last edited by beacon; 05-09-2018 at 09:46 AM.
Reason: Typo
I know, slow going.
Have eased up on the repayment/income ratio amongst other things to keep up the #s up. Taking nibbles at "not-quite-ideal" loans, while going full steam on the rare "ticks-all the boxes" types. Hopefully HM run a marketing campaign soon and increase their new business take.
I know, slow going.
Have eased up on the repayment/income ratio amongst other things to keep up the #s up. Taking nibbles at "not-quite-ideal" loans, while going full steam on the rare "ticks-all the boxes" types. Hopefully HM run a marketing campaign soon and increase their new business take.
They seem to be running a big marketing campaign already
For REWRITES! the rewrite rate is HUGE at the moment
Re-writes are a double edged sword I think. On one side it means an early payout, but on the re-investment side it shows if a borrower has been able to make repayments in the past. For me, knowing that past repayments have been made (over a reasonable period of time), means that will likely continue, lowering the chance of defaults.
So I tend to favour re-writes that show good past repayment history. Something you don't know with a new borrower...
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