and if you want out you can't sell, the secondary market is a dead duck because no one wanted it, according to the survey results.....
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and if you want out you can't sell, the secondary market is a dead duck because no one wanted it, according to the survey results.....
I will most likely still invest in harmoney after the fee change, their returns arent bad at all (even after the fees and write-offs).. I have had up to 60% of my entire portfolio in it already, and i think it would be better to just watch how things unfold before i decide to pull out entirely.
As long as my RAR stays roughly the same, give or take a few. I dont see why i shouldnt continue with them
Assuming real returns stayed similar, then sure. My calculator says otherwise. I see real returns under 10% within a year. Not worth the risk compared to other p2p platforms IMHO.
Unrelated question,
Why does it seem like where my RAR should be displayed i instead get
http://imgur.com/edit
Is it something to do with not enough capital returned yet?
If it goes below 10%, i may consider other alternatives.. Theres alot of investment vehicles that make that same amount, that doesn't necesarily involve p2p. I've been heavily invested in the other lending platforms too, but there seems to be hardly any action on them
Based on my return of 12.94% last financial year the new fee structure would have dropped my return to 10.7% based on the 20% commission or 11.45% based on 15% commission. Currently paying just over 5% of interest in fees. I have opted for a conservative spread with 20% in As and 40% in Bs - I might have to reconsider the spread and perhaps use other platforms for the lower risk investments - first time I have seriously considered the other P2P platforms since I have been pretty happy with Harmoney.
I'm with you Art. I haven't worked out the difference the fee hike will make to my investments but at a current cost of around 5% I can't see a hike to 20% on interest only is going to be in my favour. I have stopped reinvesting as of today and will maintain a wait and see approach.Quote:
first time I have seriously considered the other P2P platforms since I have been pretty happy with Harmoney.
Personally, I think Harmoney, until today, did a pretty good job. They've F****d up on this one big time and unless they can prove that this fee change isn't going to seriously affect our returns, I will be jumping ship.
It will vary with a different interest rate but one loan I reworked...
$250 @ 20.03% for 36 months. Old fee totalled $4.18. New fee at 15% is $12.70. 17.5% is $14.82 and 20% is 16.93. Roughly 3 times, 3.5 times and 4 times respectfully.
Repayment $250 and total interest $84.67.
Now take off RWT at your rate (remember it comes off of the gross, not the nett) and your actual return is....
For comparison
looks like Lending Club of USA still only charges 1% fees.. Makes you wonder, they've been around for far longer than HM and still have modest fees.
Tho in fairness, the delinquency rate in Lending Club is far greater