Is p2p investing really investing?

[Bjauck]

But returns did steeply dive by 20-40%...

i could easily suggest that it is a leap of faith to correlate credit card debt and p2p lending.
It might work out that way.

As I said I am totally for the industry , I think its a great innovation, I just want folks to have a good idea about the risk.

P2P is new sector in NZ and I guess its risk is not fully known. BTW, with investment in NZX 50 companies, the returns(including drop in valuations) averaged about -26% in the financial year ending in 2009.

[Pipi]

27% of my total financial investment portfolio at present, but this will reduce. I don't include my home. I only include investments I can make income off.

[Saamee]

27% of my total financial investment portfolio at present, but this will reduce. I don't include my home. I only include investments I can make income off.

Does your statement mean you are Proactively taking Funds out of P2P? If so can I ask you why?

[Pipi]

Does your statement mean you are Proactively taking Funds out of P2P? If so can I ask you why?

No I am not, I have put all I want to currently in Harmoney so letting that build up with reinvesting. I'm putting money aside for shares, so my % in p2p will reduce.

[Bjauck]

27% of my total financial investment portfolio at present, but this will reduce. I don't include my home. I only include investments I can make income off.

You can make money from the equity in your home - either by renting it out or taking in lodgers. If you did not have your home you would need to rent. Depending on the home and your stage in life, you could trade down and reinvest the excess. In NZ it is for many their main investment and their pension plan. In my opinion. determining how diversified your investments are becomes meaningless if you don't include the current value of the equity invested in your home - especially when assessing investment diversification among those whom may or may not own their own homes.

In my opinion, 27% in p2p sounds like a high proportion of your investments in a new potentially risky asset class. However, if you have 80% of your total investment equity invested in your own home, then I would not come to that conclusion.

[Pipi]

I see what you mean. I am new to all this, so have never looked at my home in my investment portfolio, as I will always need a roof over my head. I do include it in my networth though. I look at my investment portfolio as something that will make me money to live off, (currently have no interested in getting borders etc). So if I included this and also my business it brings me down to 4%.

[Bjauck] In my opinion, 27% in p2p sounds like a high proportion of your investments in a new potentially risky asset class. However, if you have 80% of your total investment equity invested in your own home, then I would not come to that conclusion.[/QUOTE]

[Harvey Specter]

I see what you mean. I am new to all this, so have never looked at my home in my investment portfolio, as I will always need a roof over my head. I do include it in my networth though. I look at my investment portfolio as something that will make me money to live off, (currently have no interested in getting borders etc). So if I included this and also my business it brings me down to 4%.

I dont include my house in my investment portfolio (even though it has capital growth and provides imputed rents) and my decision is not investment based. It is emotional based, I chose it based on the type of house I want to live in and the stage of life and wealth I am at. If it was investment based, I would probably live somewhere smaller or choosen a place with bigger capital gain potential, or maybe even choosen to rent and buy a rental elsewhere.

If I was young, and my house was just a stepping stone, then it might be 100% investment based.

[Bjauck]

I dont include my house in my investment portfolio (even though it has capital growth and provides imputed rents) and my decision is not investment based. It is emotional based, I chose it based on the type of house I want to live in and the stage of life and wealth I am at. If it was investment based, I would probably live somewhere smaller or choosen a place with bigger capital gain potential, or maybe even choosen to rent and buy a rental elsewhere.

If I was young, and my house was just a stepping stone, then it might be 100% investment based.

If you did not have your own home you would need a replacement portfolio of well-performing shares to be able to afford to pay the increasing rent for a similar house over the years. So when comparing investment portfolios between a home owner and a non home owner, you need to include the value of any equity owned in a home. All investment decisions have an emotional component to a greater or lesser degree.

All home purchases have an investment component to greater or lesser degree. Nimby-ism has as much to do with preserving property values as anything else. Nobody likes to see capital values erode - whether it is their home or their portfolio of NZX shares.

[attraides]

I've been "Investing in P2P" in both NZ and AUS since December 2014 (presently hold positions in excess of 400 unsecured and secured loans ranging from ($25 -$1000) and have invested in loans with all P2P providers in NZ plus the two in Australia most accessible to NZ investors wishing to start out with small test amounts to begin with.

I have successfully averaged "stable" annual returns over 10%+ every year through a very fractionalised-diversification secured and unsecured strategy.

Typically the fewer "unsecured" loans you invest the more volatile your investment is, only then would i consider P2P lending unfit as an "Longterm Investment"

[whitt]

I've been "Investing in P2P" in both NZ and AUS since December 2014 (presently hold positions in excess of 400 unsecured and secured loans ranging from ($25 -$1000) and have invested in loans with all P2P providers in NZ plus the two in Australia most accessible to NZ investors wishing to start out with small test amounts to begin with.

I have successfully averaged "stable" annual returns over 10%+ every year through a very fractionalised-diversification secured and unsecured strategy.

Typically the fewer "unsecured" loans you invest the more volatile your investment is, only then would i consider P2P lending unfit as an "Longterm Investment"

do you have any suggestions for people wanting a bit of longterm investing using Nz p2p?
also what about for older people wanting to retire and live off p2p interest, would you suggest a different strategy?