10% on a million with easymoney.com
Discussion
It's just a bog standard peer to peer investment platform. Where you take a MASSIVE dose of risk for the chance of a couple percent more than a normal savings account.
Each to their own but imo anyone successful enough to accrue £1m in investible cash and chooses to invest it in this is a gargantuan plonker. "Easy money" FFS.
Each to their own but imo anyone successful enough to accrue £1m in investible cash and chooses to invest it in this is a gargantuan plonker. "Easy money" FFS.
trickywoo said:
Is the 10% guaranteed?
Website says 5.4% to 10%.
I’d imagine most people get nearer the five than 10 and there will be risk. More so than a bank deposit giving you high 4%
Guaranteed at 10% on a million plus-no mad or bad reviews-some people are just very neg. Ffs.Website says 5.4% to 10%.
I’d imagine most people get nearer the five than 10 and there will be risk. More so than a bank deposit giving you high 4%
Edited by trickywoo on Wednesday 7th May 08:56
Good Plan Ted said:
Guaranteed at 10% on a million plus-no mad or bad reviews-some people are just very neg. Ffs.
Not negative, merely realistic.You have a very novel definition of guaranteed:
Or from their own website:
easyMoney said:
Your capital is at risk and interest payments are not guaranteed, in the event of a borrower default.
The “target rate” is the rate we are currently targeting but returns are variable and not guaranteed.
Withdrawals from a peer to peer investment platform are not like an instant access savings account and your capital is tied up for the term of the loan, there can be significant delays in getting your money back.
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The “target rate” is the rate we are currently targeting but returns are variable and not guaranteed.
Withdrawals from a peer to peer investment platform are not like an instant access savings account and your capital is tied up for the term of the loan, there can be significant delays in getting your money back.
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My mum has a small amount of cash with SOMO - its a bundled p2p property lending platform, you can pick the loans you are in and see the charges, PG's, valuations etc etc etc. usually get about 10-12% .
lots of them default, but they always get the money in the end. but you may find a 2 year loan is stuck for 4 years
my tactic is pick low LTV sub 50% in london locations, PG with other properties and dont pick ones with surnames that you think might be a bit suspect.
lots of them default, but they always get the money in the end. but you may find a 2 year loan is stuck for 4 years
my tactic is pick low LTV sub 50% in london locations, PG with other properties and dont pick ones with surnames that you think might be a bit suspect.
Edited by z4RRSchris on Wednesday 7th May 09:55
NowWatchThisDrive said:
Why do you suppose the borrowers in this arrangement are having to raise cash like this rather than through more conventional means?
Our MD wanted to lend £1M to his developer mate at 10%. Story was he could get 8% from the bank but wanted to limit his dependence on them.Our finance guy squashed the idea.
Assume you realise that, aside from FSCS, HNW investments enjoy lower levels of protection due to the presumed sophistication of the investor?
I can take a pretty good guess as to why they’re badging certain levels as HNW and professional and how they are directing loans to get close to target returns. It could well be that the spiciest credits are going to those (theoretical) most able to understand and cope with the risk they are taking…
I can take a pretty good guess as to why they’re badging certain levels as HNW and professional and how they are directing loans to get close to target returns. It could well be that the spiciest credits are going to those (theoretical) most able to understand and cope with the risk they are taking…
Like everything in life, when times are good, things like this look fine, it's when it goes wrong that problems occur.
This type of lending is literally the lender of last resort. There are hundreds of traditional lenders happy to lend to experienced developers and investors on good quality schemes at significantly lower rates than p2p lenders can offer in the UK. There's a reason the borrower can't access that cash.
When values drop these are the first schemes to go bad. Add in that developments are one of the most risky forms of property investment due to all the variabilities of all the inputs - finance costs, build costs (labour & materials), planning issues, timescales, sustainability requirements everchanging, supply, demand, etc. A small change in just one variable can have a huge impact on residual value, far more so than in traditional property investment.
We've not had a crash in recent times, but we've had wobbles - the 2022 mini-budget dropped industrial development land values by around 50%. They are recovering but higher finance rates and increased build costs have made lots of schemes unviable in the short term and have been mothballed. Should there be another shock to the system (I'm looking at you Mr Trump) then suddenly lots of schemes will be totally under water. Bear in mind that the industrial market has been, and continues to be, the strongest performing property sub-sector, the risks are far greater in other asset classes.
I was taking a look at a traditional office investment yesterday that has just come to the market for £9.5m, the vendor purchased it 8 years ago for £21m.
If you're happy to risk your money, that's absolutely fine, go for it, just enter with your eyes wide open and accept that a 10% return long term is not guaranteed.
Personally if I had £1m cash I'd rather source my own deal, providing me with the opportunity to assess ALL the risks and mitigate those risks.
I was around in 20004/2005 when there were lots of schemes offering guaranteed returns - buy a hotel room, buy a single office in a serviced office centre, apartments with guaranteed returns, Icesave, Kaupthing, etc. They all went bust.
This type of lending is literally the lender of last resort. There are hundreds of traditional lenders happy to lend to experienced developers and investors on good quality schemes at significantly lower rates than p2p lenders can offer in the UK. There's a reason the borrower can't access that cash.
When values drop these are the first schemes to go bad. Add in that developments are one of the most risky forms of property investment due to all the variabilities of all the inputs - finance costs, build costs (labour & materials), planning issues, timescales, sustainability requirements everchanging, supply, demand, etc. A small change in just one variable can have a huge impact on residual value, far more so than in traditional property investment.
We've not had a crash in recent times, but we've had wobbles - the 2022 mini-budget dropped industrial development land values by around 50%. They are recovering but higher finance rates and increased build costs have made lots of schemes unviable in the short term and have been mothballed. Should there be another shock to the system (I'm looking at you Mr Trump) then suddenly lots of schemes will be totally under water. Bear in mind that the industrial market has been, and continues to be, the strongest performing property sub-sector, the risks are far greater in other asset classes.
I was taking a look at a traditional office investment yesterday that has just come to the market for £9.5m, the vendor purchased it 8 years ago for £21m.
If you're happy to risk your money, that's absolutely fine, go for it, just enter with your eyes wide open and accept that a 10% return long term is not guaranteed.
Personally if I had £1m cash I'd rather source my own deal, providing me with the opportunity to assess ALL the risks and mitigate those risks.
I was around in 20004/2005 when there were lots of schemes offering guaranteed returns - buy a hotel room, buy a single office in a serviced office centre, apartments with guaranteed returns, Icesave, Kaupthing, etc. They all went bust.
Good Plan Ted said:
Guaranteed at 10% on a million plus-no mad or bad reviews-some people are just very neg. Ffs.
'Guaranteed' is a word that I'd never use in relation to P2P lending.In my experience of P2P, diversifying across platforms is just as important as diversifying across individual loans. Everything might look fine now, but situations can change very quickly.
C69 said:
Good Plan Ted said:
Guaranteed at 10% on a million plus-no mad or bad reviews-some people are just very neg. Ffs.
'Guaranteed' is a word that I'd never use in relation to P2P lending.In my experience of P2P, diversifying across platforms is just as important as diversifying across individual loans. Everything might look fine now, but situations can change very quickly.
xeny said:
ferret50 said:
Who remembers Lendy/Savings Stream?
I was just thinking of Lendy - Entered administration just under two years after deciding to sponsor Cowes week wasn't it?I peaked at have £36k with 'em, managed to get £19k out when it started to crumble and I think my total losses will be in the £12/14k ballpark. Every now and then I get an email with another few quid available!
Learnt my lesson regarding P2P.....
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