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  1. #1171
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    777

    Default

    With Inflation running at 6+% ( cough cough ) and most LC loans offering about 10% minus 25% flex, these days..... After Tax the true return is now almost zero.

    As funds now get repaid - I too am withdrawing every cent and investing elsewhere.

    Do not get me wrong, I really really like LC and they have served me very very well for 6 years, but perhaps now with changing external financial variables, for me their time with re-investing is finished for now.

  2. #1172
    Member
    Join Date
    Sep 2019
    Posts
    51

    Default

    It's a valid viewpoint. Everyone will have their own strategies, and different "tipping points".

    For me, inflation is one factor when considering return on investment, but just as important is "where else would I put my money". Inflation might be 6% (those of us who pay rates, buy building materials, employ tradespeople and shop at supermarkets will know it has been at least that for a while!), but it doesn't mean that bank term deposits have caught up: TD rates are still very very low.
    Managed funds returns have been good, but only partly impacted by inflation - I wouldn't say their returns have dramatically increased in the past 2 years. So while I do have money in managed funds as part of my diverse portfolio (same with NZ property), I feel that P2P still has a part to play in that portfolio.

    I think a good loan of around 11-12% with 10% going to LC is still a very productive investment. Anything below 10% at 25% fee, or below 8% at 10% fee, is not worthwhile for me, I do agree on that.

    I treat P2P like those managed funds actually: where in funds, you split between conservative, medium and risky, I do the same with loans. Each has a return in line with the risk. I have to say the risks with LC are a lot lower than what they were with Harmoney.

  3. #1173
    Junior Member
    Join Date
    Dec 2021
    Location
    Picton
    Posts
    1

    Default

    I'm generally very happy with LC.

    The unsecured loans are however a concern to me as my areas rate in unsecured loans stands at 9-10% with 90% Cx loans and 4 Cx loans written off already. I'm not taking them since 2-3 month anymore until I'm down to 1% of my total invest from currently 5.1%. Then I'll maybe get into a few handpicked ones of B3s max and with 10% flex only.
    Another concern is the upper limit of $20,000 for them. I find that limit ways too high, I would probably accept an upper limit of $5,000-$10,000

  4. #1174
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    777

    Default

    New RAR's out today @ LC.

    Both the wife's and mine have lowered and morphed into the same rate now @ 11.81%

    This was expected to happen, 6 months back now.

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