Harmoney works best drip feeding a small amount in each week, good luck transferring in large one off amounts.
Those 20 loans from this morning are gone, only 2 now showing.
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Harmoney works best drip feeding a small amount in each week, good luck transferring in large one off amounts.
Those 20 loans from this morning are gone, only 2 now showing.
I find the direct transfer normally goes through the next day but the DD takes a few.
Defaults are the big unknown. I have had a few but the have been more than compensated. Time will tell if thats the still the case.
Agree. Only put in a bit at a time as you want to be fully invested as soon as and dont want to be forced to take loans you dont want to. If you dont want an A and B, you are currently out of luck but there was was a time when there were no A going though. The other annoying thing is you have no idea when they will they will upload more loans so unless you have time to check a few times a day, you may miss your opportunity.
Whats the best strategy?
I am going to invest in each loan .
I started at 4 notes for each but have now switched down to one note, but I think it will take too long , I may have to increase.
On average how many loans come up for investment per week?
If I invest in each new loan for 60mnths I will be visiting the website a lot.
Anyway I hopes it better tgan my forrays into FOREX and Canadian oik juniors.
My best investment has been the house I bought.
True - especially if you have a house in Auckland. How long Auckland house price rises will continue to exceed historical averages is uncertain.
Your returns from Harmoney are taxed at your marginal income tax rate, whereas with real estate all your capital appreciation and, if you are the owner-occupier, the benefits of being an owner-occupier are tax-free. With Harmoney all the gross interest is taxed, then you still need to pay the service charges and deduct from your returns any defaults, so you could end up paying more than 33% tax during the course of the year on your actual net investment returns. In addition to the uncertainty of actual default rates, especially as the economy comes in for tougher times.
I have been investing now for 11 months, I started with 1 or 2 notes per loan, now I invest 6 per loan. Reason being that it becomes quite a lot of work re-investing paid off loans and if one stuck to 1s and 2s you would have a lot of loans and after a few months it would require constant attention to keep all your money "active". I have invested in 181 loans and 43 of them have been paid back in full, the return from these is not that good but still satisfactory. Harmoney advised me some months ago that the expected early payment of loans was 28%. Looks like that figure could be a bit light.
My strategy has been to concentrate on 36 month loans (95%) not too many A's or F's. Probably C and D loans weighted. Borrower's monthly payments must not exceed 10% of income. So far I have had no write offs, although there are a couple of arrears that are 2 months old. Going back to the first 2 months, I calculated a gross return of plus 16% on those loans, so if this continues one can stand a write off or two.
Over all, happy with them now that most off the bugs seem to be sorted on the website.
Had a letter this morning telling me that i could borrow up to 35k for a new car,
Pretty obvious to me that these letters must go out willy nilly as i have been unemployed/able for 12 months,so if i do take up the offer make sure you investors out there keep an eye out.
I am weighted 90% in A & B loans.
So far I haven't had any paid off in full early and no defaults.
Things are just ticking along as they should.
I have stayed away from any loans I wouldn't take out myself, e.g. weddings, car loans etc.
Only debt consolidation, business loans, home improvements.
What is the quoted annualised return on that?
I think I have had 5 write offs from about 250 loans. about 40 in arrears and 50 paid off early. Annualised return is apparently over 20% but even after writeoffs, I am hoping for more than 15%. Note: of the write offs - a B, D E and 2 F's.
13.18% according to the dashboard.
Saw an article in the print edition of Dominion Post today about ComCom investigating Harmoney regarding their fees. Cant seem to find it online though
been with Harmoney for a few months and have worked a A to D pattern to try and give me a net return (after tax and fees ) of 12 - 13 %.
Bit difficult as anything I have taken over 20% goes into arrears. Also fin it frustrating as I am trying to load over $250K and it takes ages.