Harmoney

[leesal]

It has been a rough ride of late, but things have improved in the last two or three weeks - I've been able to get almost all of my available principal re-invested with some good quality loans.

The graph below plots my invested principal - blue line with scale on the left vs the total gain (i.e. total value less defaults, fees, tax) - red line with scale on the right:

chart.png

Overall the gain is tracking very consistently for a clear return above 15%pa. The first dip in the blue principal line is my deliberate choice to not take on many loans during the lead-up to Christmas, the second longer dip is due to recent lack of loans, but is now almost back on track.

Added: [this is on a fixed $100K investment i.e. no withdrawals for clarification]

Am getting enough loans too, esp the last few weeks now. Although am at a much lower base, so only need to reinvest a a few hundred to stay static.

Nice Graph Myles. You're doing very well. How are you achieving 15%. To achieve that I'd need to be at 26.5%+ before costs (top tax bracket). Aren't most you loans platform 1.5?

[myles]

10.5% tax rate so equivalent would be above 11% + any concessions/deductions etc.

[permutation]

I think I might be done with Harmoney--I've had ~15% of my total investment paid back over the past few months with almost no loans to reinvest (4 in July, 11 in June). Not sure where to take the funds.

Sometimes you can lose heart CageyB, but there has been slim pickins' lately for almost everyone except some people on this forum who state that they are able to reinvest their large cash reserves easily; hmmm, maybe they have very broad or no filters, a lot of time and maybe good luck!

I keep track of my principal repayments over a running 6 month period and have found 44% of my total outstanding principal is repaid over this time.

So it is a difficult task to lend new money against the rapid flow of repayments. I currently have a 22% Cash Balance vs Outstanding Principal and have Autolend On.
I do receive a trickle of loans this way with my very strict filters and if I happen to log in and see some loans in and out of my Autolend filter, I quickly analyze them and if suitable lend to them before they vanish within minutes!

[humvee]

I currently have a 22% Cash Balance vs Outstanding Principal and have Autolend On.
I do receive a trickle of loans this way with my very strict filters and if I happen to log in and see some loans in and out of my Autolend filter, I quickly analyze them and if suitable lend to them before they vanish within minutes!

If your struggling to get loans via auto lend with a 22% cash Vs outstanding. No wonder I've had only 3 auto lend loans in 3 months during this time I've generally been between 4% and 6%.
The problem is with 22% of your portfolio earning 0% your real returns will be dragged way down

[permutation]

If your struggling to get loans via auto lend with a 22% cash Vs outstanding. No wonder I've had only 3 auto lend loans in 3 months during this time I've generally been between 4% and 6%.
The problem is with 22% of your portfolio earning 0% your real returns will be dragged way down

There is no problem, this is a temporary injection of cash which is sourced at an interest rate about 3 times less than my current RAR of 13.99%.

Sadly, the real unfair problem emerged when Harmoney increased the limit of Autolend lend notes from 4 to unlimited quite sometime ago.

I still believe that Autolend loans should be limited to 4 or less, to make it fairer for the small retail lenders , the majority of whom are most probably at work unable to access the platform.

[humvee]

There is no problem, this is a temporary injection of cash which is sourced at an interest rate about 3 times less than my current RAR of 13.99%.

Sadly, the real unfair problem emerged when Harmoney increased the limit of Autolend lend notes from 4 to unlimited quite sometime ago.

I still believe that Autolend loans should be limited to 4 or less, to make it fairer for the small retail lenders , the majority of whom are most probably at work unable to access the platform.

Although 22% uninvested drops your real returns once factored in to ~10.9%

[permutation]

Although 22% uninvested drops your real returns once factored in to ~10.9%

22% of my Outstanding Principal in cash represents the NET interest generated by my portfolio over the last 40 months lending.

Even a 10.9% return in the short term for my purposes is still great.

[beacon]

Sometimes you can lose heart CageyB, but there has been slim pickins' lately for almost everyone except some people on this forum who state that they are able to reinvest their large cash reserves easily;

Been a hard grind trying to reinvest principal returned during May last week - 11 July ish. Picked up subsequently, but still patches where a good chunk of loans come on the marketplace and vanish in a flash. Still, better volume than Lending Crowd, and better rate than Squirrel etc. For the moment...

I keep track of my principal repayments over a running 6 month period and have found 44% of my total outstanding principal is repaid over this time.

Mine's at 40% ish too. Great RAR permutation.

Great going myles...

[BJ1]

I keep track of my principal repayments over a running 6 month period and have found 44% of my total outstanding principal is repaid over this time.

For the past six months my repayments have been near to the same. I deliberately target 36 month terms and low repayment percentages, which leads to higher cash flow and more of my loans being topped up.

[Vagabond47]

May be of interest to many here.. Heartland bank restructuring and listing on ASX. And they own a decent chunk of Harmoney.. https://www.nzherald.co.nz/business/...ectid=12099133