Is p2p investing really investing?

[Saamee]

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"

"Typically the fewer "unsecured" loans you invest the more volatile your investment is"...

I'm struggling to follow the logic there! My mind tells me that the more "Secured Loans" you have = A Less Volatile investment you own??

[beacon]

"Typically the fewer "unsecured" loans you invest the more volatile your investment is"...

I'm struggling to follow the logic there! My mind tells me that the more "Secured Loans" you have = A Less Volatile investment you own??

Perhaps he meant the more loans (whether secured/unsecured) you buy, the lesser the income volatility = not too different a view from yours, Saamee. Hence, the fewer "unsecured" (or secured, in your case) loans you invest in, the more volatile your investment ...

Diversification via greater quantity of loans (and in his case via providers, loan grades, NZD/AUD etc)

[Saamee]

Perhaps he meant the more loans (whether secured/unsecured) you buy, the lesser the income volatility = not too different a view from yours, Saamee. Hence, the fewer "unsecured" (or secured, in your case) loans you invest in, the more volatile your investment ...

Diversification via greater quantity of loans (and in his case via providers, loan grades, NZD/AUD etc)

Yes. Agreed

[Entrep]

If a P2P loan gets written off the amount is tax deductible correct?

[RMJH]

If a P2P loan gets written off the amount is tax deductible correct?

Only if you are carrying on a lending business. No clear rules on this sadly.

[Entrep]

Only if you are carrying on a lending business. No clear rules on this sadly.

Thanks, do you know if all the people who lost money in finance companies were able to claim?

[RMJH]

Thanks, do you know if all the people who lost money in finance companies were able to claim?

Same rules applied so many (most?) wouldn't have got a deduction.

[kiora]

Around :10 % in default,3% written off
http://www.scoop.co.nz/stories/BU171...+November+2017

[Saamee]

@Entrep - This has been well covered over past threads ( before your time I believe ) however I'm sure it was this guy that really had great input on it ( maybe over multiple P2P company threads ).

http://www.sharetrader.co.nz/member.php?11527-Bjauck


May I suggest you do a search of all the P2P threads with their user name and also with Tax as an option.... ( or even just a search of Tax within P2P )

[Entrep]

Thanks Saamee, the consensus seemed to be that fees are deductible but write offs are not unless you have a special structure in place (even then not sure).

I will speak to my accountant.

Edit: https://www2.deloitte.com/nz/en/page...p-lending.html