Peer to Peer Lending

Discussion in 'Other Asset Classes' started by wombat777, 4th Nov, 2015.

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  1. wombat777

    wombat777 Well-Known Member

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    wombat777, 4th Nov, 2015
    #1
  2. Perthguy

    Perthguy Well-Known Member

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    @wombat777, do you think you would loan money through a p2p lending site? I was thinking about it. Risky?
     
    Perthguy, 4th Nov, 2015
    #2
  3. Heinz57

    Heinz57 Well-Known Member

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    Yes I opened a thread on ratesetter but no response. Are you using money place Wombat?
     
    Heinz57, 5th Nov, 2015
    #3
  4. wombat777

    wombat777 Well-Known Member

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    @Perthguy, @Heinz57 - I'm not currently lending through any of the services. I would consider it - primarily in a funds pool model. It is more risky to lend to a single borrower. Some kind of diversification would be the right approach.
     
    wombat777, 5th Nov, 2015
    #4
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  5. Heinz57

    Heinz57 Well-Known Member

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    I'm leaning toward ratesetter. I have set the account up but haven't had the time to devote to it. The returns appear good and I think the risk manageable. I will explore more maybe look at a small investment and report back. Meanwhile it would be good to hear of some Australian experiences with P2P. Lot of info on the web but mainly US.
     
    Heinz57, 5th Nov, 2015
    #5
  6. Steven Ryan

    Steven Ryan Well-Known Member

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    I first read about P2P lending maybe 2-3 years ago via Mister Money Mustache–loved the concept so I will be watching this thread with great interest.
     
    Steven Ryan, 5th Nov, 2015
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  7. The Falcon

    The Falcon Well-Known Member

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    P2P is a no brainer.......for the platform operator :) I struggle with the risk / reward analysis as the punter lender however.
     
    The Falcon, 5th Nov, 2015
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  8. DanW

    DanW Well-Known Member

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    Forgetting about loaning money, would you borrow to invest? That's what I'd be interested in..

    Supposedly the benefit for the borrower is lower rates than the big lenders?
     
    DanW, 5th Nov, 2015
    #8
  9. Grogounet

    Grogounet Member

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    Has anyone tried it?
     
    Grogounet, 22nd Aug, 2016
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  10. S0805

    S0805 Well-Known Member

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    I was looking p2p sector earlier this year but was focused more on buying shares in these companies as I could see compare to global market aussie is yet to embrace the ideas. I was keeping close eye on Money place listing but i think they were listed as back door entry. any P2P companies listed on asx??
     
    S0805, 23rd Aug, 2016
    #10
  11. JohnPropChat

    JohnPropChat Well-Known Member

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    Has the landscaped changed in the last 6 months or so? P2P lenders taking off. I heard Westpac invests in SocietyOne. The much more mature P2P market in the UK is growing by heaps and bounds.

    PS: I am primarily interested in ratesetter
     
    JohnPropChat, 6th Jan, 2017
    #11
  12. Kirsti327

    Kirsti327 Well-Known Member

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    The bank I work for invests in SocietyOne as well. They give borrowers a grade based on credit score and we've chosen to invest in the AA, A and B grade categories. Delinquency has been negligible and returns quite decent (around 8%-9%, with only minor administration). Good experience so opening up our mandate to put some into the C risk category soon.

    I tried to get a quote from a few of the platforms myself for investing but the rate wasn't attractive enough to proceed (since I still had equity in a property and could alternatively access mortgage secured rates).
    One of the platforms, I think it was Ratesetter, have details of their entire loan book available to download. I looked through it a while back and they have loans as low at 3.50%, but they didn't offer me one of those :(
     
    Kirsti327, 5th Feb, 2017
    #12
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