Peer-to-peer lending sites: MSE guide discussion
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Yes, there are a few of us here.
There is a specific thread at
http://forums.moneysavingexpert.com/showthread.php?t=55037180 -
I do not remember exactly why I was not keen in options with safeguard fund, probably because rates are ridiculously low on those.
After reading more I quickly taken 2 000 out of FC and placed 1000 in moneything and 1000 in ablrate. On FC I switched autobid off. Then added another 1000 split amongst FC, moneything and ablrate resulting in about 1300 on each platform. Entertaining myself with manually selecting loans on those platforms placing dribs of £20 at a time . If all goes well I will place another couple of thousands in those platforms plus collateral and FS if I find trustworthy loans on the latter.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
elephantrosie wrote: »what do you mean by 28% tax?
The first £11,300 of gain is tax free due to the annual CGT allowance. Above that the rate is 10% (18% residential property) for basic rate tax payers and 20% (28% residential property) for those liable to the higher rate, roughly higher rate tax payers. Much P2P lending is exempt as well, you need to check the guidance for each platform because it depends on the fine details of how their loans are structured. If you have disposals (sales or repayments) of loans that aren't exempt that are more than four times the allowance you have to report all transaction in non-exempt loans and other investments to HMRC even if no CGT is due because you're within the allowance.0 -
i do wish you wouldn't defend P2P so well, i am finding it hard enough as it is to stay fully invested in the loans that i like
I occasionally think P2P is something that I should get involved with, but I am very wary, what I fear is not risks from a day to day basis, but what happens when there is a huge economic collapse (like 2008 and 1988). Sure, share prices and property collapsed back then, but they eventually recovered, wouldn't P2P investments just end up being totally lost in such an extreme economic meltdown?
On the other hand both jamesd and bigadaj not only put up very reasonable arguments, they are also respected posters with a history of common sense. I think my problem is that I am at a strange (to me) stage of my investing life. I have made my money, and I am 60 next year, and I must admit that I am struggling a little moving from investing for profit, to investing for safety. We've just sold 2 (of 8) investment properties, it was the right thing to do, but part of me still feels like a mug when I look at the prospective lower returns on the equity released.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »I occasionally think P2P is something that I should get involved with, but I am very wary, what I fear is not risks from a day to day basis, but what happens when there is a huge economic collapse (like 2008 and 1988). Sure, share prices and property collapsed back then, but they eventually recovered, wouldn't P2P investments just end up being totally lost in such an extreme economic meltdown?0
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If you have disposals (sales or repayments) of loans that aren't exempt you have to report all transaction in non-exempt loans and other investments to HMRC even if no CGT is due because you're within the allowance.0
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It's worth remembering that Zopa was around back in 2008 and, although it had a pretty bad year, investors did not lose money. With asset backed P2P, which most are recommending here, a total loss is pretty unlikely. Having a significant proportion of your money tied up for a long time during recoveries is something you would need to be able to cope with however. If you stick to the recommended ~10% of your investments in P2P, then this shouldn't be a major issue.
I appreciate what you are saying, and perhaps my post could have been worded better, but wouldn't those assets be sold in a very bad market, leading to significant losses? In 2008 our properties dropped in value by approx £1m, but are now well over £2m higher than they were in the dip. Obviously we didn't sell back in 2008, in fact, we actually bought another investment property (which has doubled in value) taking advantage of the lower values.
EDIT: Another problem that I (I realise that this is irrelevant to a lot of people) have with P2P is that I wouldn't be able to spend the extra returns (we are already going to struggle to spend everything), so it seems daft to accept risks for no upside, at the end of the day you have to balance risk against potential 'real' gains.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »I appreciate what you are saying, and perhaps my post could have been worded better, but wouldn't those assets be sold in a very bad market, leading to significant losses? In 2008 our properties dropped in value by approx £1m, but are now well over £2m higher than they were in the dip. Obviously we didn't sell back in 2008, in fact, we actually bought another investment property (which has doubled in value) taking advantage of the lower values.EDIT: Another problem that I (I realise that this is irrelevant to a lot of people) have with P2P is that I wouldn't be able to spend the extra returns (we are already going to struggle to spend everything), so it seems daft to accept risks for no upside, at the end of the day you have to balance risk against potential 'real' gains.0
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I was under the impression you only needed to make a declaration to HMRC if you had a liability. I have previously placed share trades outside of a tax free wrapped and made a few hundred pounds here and there, but never reported the transactions to HMRC.0
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