Peer-2-Peer lending

[Kendhni]

I have been dabbling with it now for a few months ... due to the miserable returns from the banks of late. I notice that in the last few weeks the rates have dropped by quite a bit ... still better than the banks though.

Does anybody else invest in peer-2-peer lending sites?

[Silver_Shiney]

Wasn't even aware of it...

[Kendhni]

Hi SS, it has been about for over a decade now but has really only come to the fore in the last couple of years ... basically it allows borrowers to get cheaper loans while offering investors/lenders a better return by cutting out the banks in the middle. Risk is mitigated by spreading small investment amounts over many loans rather than a few loans ... plus most sites seem to have quite strict criteria for the borrowers. The government has pumped tens of millions into these sites to provide more money for lending ... and hopefully (at some point) next year they can be wrapped up in an ISA.

[Boris+]

No, I've not got anything invested in this manner (as far as I know), and somehow I don't feel comfortable with it.

I believe I've got some investments which are doing ok, and they get monitored daily - so I'll let sleeping dogs to have a good kip (as they say).

The thing is, if people have to resort to this facility because mainstream facilities won't play ball - then I don't think I'll play along either.

Em

[Silver_Shiney]

Thanks Ken

[Stephen]

Money......I remember that.....just.

[Kendhni]

No, I've not got anything invested in this manner (as far as I know), and somehow I don't feel comfortable with it.

I believe I've got some investments which are doing ok, and they get monitored daily - so I'll let sleeping dogs to have a good kip (as they say).

The thing is, if people have to resort to this facility because mainstream facilities won't play ball - then I don't think I'll play along either.

Em

Hi Boris,
Don't think of it as 'resorting to non-mainstream' it is a just a competitor to the banks ... one that the banks have started taking seriously which has helped to keep borrowing rates low ... which is both a good and bad thing.

[Manoverboard]

For the ' pensioners ' there is a new Income Bond scheme which seems to offer up to 4% ... not big time but safe and certainly better than most of the routine Building Society accounts.

Have to confess that I do not fancy becoming a money lender and given that I no longer go to work it is, for me, unwise to put money that I cannot replace into a risk investment.

ps ... welcome back Ken and a Happy New Year

[Gill W]

I know someone who dabbles in Peer to Peer.

He is careful about the profile of the person he lends to, and spreads his money over a large range of borrowers.

But he doesn't do it on a large scale

[Raybosailor]

Peer to peer is ok if you invest carefully and a good peer to peer scheme is registered with the FSA and you can get default insurance.
Personally I think property is still the best investment.

[Raybosailor]

There are no decent savings accounts these days ISAS even taking the tax relief into account are useless, pension bonds at 4% with limits of £20,000.00 per person won't make you rich very quick but start up your own property investment venture with a few friends or family and your soon playing bingo.
From reading the posts on this and other cruise forums there are quite a few subscribers that take two or more cruises a year and have friends who do the same. If four friends or family get together and invest a sum of money into buying a property in need of renovation they could soon be on to a winner. If members of the group are prepared to get their hands dirty the profit is greater as little or no labour costs are involved.
For example: I can buy a 3 bedroom re-possession house for about £60,000.00 and turn it round for £10,000.00, that is new Kitchen,Bathroom and new combi boiler. All electricity brought up to 17th edition standard and any plasterwork and decorating. The property will sell pretty quickly at £100-110,000 round here giving a profit of £30-40,000.00 in less than six months.
Four investors each putting £17,500.00 into the pot can achieve this with ease, (£20,000.00 in a pension bond at 4% for three years ?????) do the sums.
So peoples look in your trusted friends list and seek out the plumber,sparky and builder amongst them and invite them round for a few glasses of Rioja and nibbles.
Sorry I am not having a dig at people who do two or more cruises a year but for the price of a few cruises or just one world'y this venture is easily achievable.

[barney]

"I can buy a 3 bedroom re-possession house for about £60,000.00"

Down this way Ray, try nearer £260K

This weekend, my son sold his two bed flat for £173k

He wants to buy a 3 bed house but there is very little under £250k

[GillD46]

We would love to do similar, but firstly property is MUCH more expensive here. Our daughter has just had her one bed flat valued for rental, not in this area but certainly not in amazing condition and it's well over 1/4 million.

Secondly, we don't have any friends that are the tradesmen required, so refurbs wouldn't make us much.

[Gill W]

Even the cheapest back street two up to down would be £160000 round here

[Raybosailor]

Property prices are caused by the purchaser being prepared to pay the price asked and even offering more to get what they want. To me a house is four walls and a roof and only that, I still live in my ex local authority house that I bought for under £7,000.00 I was offered £125,000.00 cash for it but although I can afford to move into a better house I won't as I have all that I want here and it would take me a year to move all my tools and machinery so I will probably die here. I am of the elk that says if it does the job don't change it, if you see me pull up at Mayflower in my beat up 51 plate Zafira in May you will see what I mean. My kids and grandkids still call me Ebaneezor although they have all been helped by the Old Scrooge.
Barney you can get a 20 acre property in Notts, for not much more than your house and a better football club too.
P.S. nobody is telling you to move to invest in property.

[majortom10]

Even though returns are poor in traditional banks/building societies at least they are safe and have the £85000 protection. A friend lost nearly all of his "pay off" when he was finished through injury playing for a Premier League club after bad professional advice to invest in shares from a well known FA and with regards to property being sound investment it all depends on which part of the country you live in.

[barney]

"and a better football club too."

Last time I was in Nottingham was to see Gills relegated from the Championship by the Trees, and after they had themselves been relegated.

Not good memories I'm afraid Ray.

To rub salt into the would, I also broke my RayBans celebrating Gills equaliser and then some muppet came on as sub for Forest anss scored from 30 yards with his first touch.
Eugene Bop ???? never to be heard of again.

We will have to wait for you lot to get relegated again to get our revenge.

(I don't live in Gillingham by the way, I live in proper Kent)

[Raybosailor]

I live 3 miles from the Derbyshire border Barney (somebody has to stop the sheep straying over)

[Raybosailor]

and with regards to property being sound investment it all depends on which part of the country you live in.[/quote]

Not true really you can invest in property in any part of the country without having to move there that's why prices are so expensive in London a large proportion of property buyers down there don't even live in the country never mind London.
If I were 30 years younger I would put my pension pot into the rental market but not good for me short term and I have given the kids enough, all they will be getting is the house and my tools which they can Ebay. If Cheryl has anything to do with it there won't be much hard cash left by the time we both pop our clogs.

[Raybosailor]

There is an auction of property at Nottingham Racecourse 27th. March with loads of property ranging from 2 bed bungalow £34,000 upwards. There are a number of 3 beds in need of renovation from £45,000 to £60,000, the catalogue also shows some terrace properties close to the two universities that will show a lot of interest as there is high demand for flats in this area.