Harmoney

[Cool Bear]

I had looked at them last year, but only E and F grades had seemed tempting. 2016 0901 MUHL Zagga investor return - fee.JPG

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.