Alternatives to P2P for 1-3 Year Investing

dont_use_vistaprint

What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.

eskbanker

dont_use_vistaprint wrote: »

What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.

What I would do is accept the fact that such a thing doesn't exist, reset expectations accordingly and go with something in the real world....

bowlhead99

dont_use_vistaprint wrote: »

What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.

What would I get if I wanted more returns than 8-12% on a short term basis but without taking any more risk?

Real.

And then just accept the going rates for cash, P2P, investment funds, or the casino.

Alexland

Which P2P is going to provide a likely 8-12% return anyway? Unless you are counting intro bonuses.

stehouk

I'm getting 10% on Archover

Alexland

stehouk wrote: »

I'm getting 10% on Archover

But with Archover that's before allowing any defaults which may occur?

bxboards

stehouk wrote: »

I'm getting 10% on Archover

I assume you are talking about the RDA loans?

Of course, a recent 10%-er to Unit you-know-who has just gone pop....

Fatbritabroad

Alexland wrote: »

Which P2P is going to provide a likely 8-12% return anyway? Unless you are counting intro bonuses.

I've made 13% with Ablrate and now just invest up to the interest earned in each borrower or less

stehouk

I'm in 6 loans 2k in each, all between 8-10% and between 6mths-24mths duration, only one had a problem which was resolved without any missed payments and the company is now trading after being backed by Archover and its much larger parent company.
I moved my funds from funding circle due to bad debts, cannot fault Archover myself.

1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.

bowlhead99

Alexland wrote: »

Which P2P is going to provide a likely 8-12% return anyway? Unless you are counting intro bonuses.

stehouk wrote: »

I'm getting 10% on Archover

Alexland wrote: »

But with Archover that's before allowing any defaults which may occur?

stehouk wrote: »

I'm in 6 loans 2k in each, all between 8-10% and between 6mths-24mths duration, only one had a problem which was resolved without any missed payments and the company is now trading after being backed by Archover and its much larger parent company.
I moved my funds from funding circle due to bad debts, cannot fault Archover myself.

1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.

So although you say you are getting 10% on each, a sixth of your deposits were subject to a 'problem' which was only resolved when the p2p platform company put its own money into 'backing' the borrower to avoid a situation where the platform loses face, and would have to tell its platform investors that it's quite easy to lose money - and admit that nobody should be signing up to their service thinking they can really get 8-10% returns while expecting them to be safe.

If you had instead lost the sixth of your money due to a default where the platform didn't decide to throw its good money after bad and 'back' the investee company, the loss would exceed a year's returns made on the other five sixths of loans you had made.

The OP is looking for a three year return. In three years time, assuming we have a recession (which is probably about due, based on timelines from history and the last nine years of bull markets) you can easily imagine some platforms *not* choosing to 'back' a defaulting borrower, just as you can imagine some platforms going completely belly-up.

Sure, you got a one-off £75 welcome bonus which comes out of the platform's potential future profits, as they are looking to buy market share. No problem with that. But the idea that someone with a 3-year view should expect to make significantly more than 8-12% while only taking the risks associated with p2p loans of 8-12% interest rate. Seems unrealistic.

Am I being overly pessimistic? Realistic, I think.

Fatbritabroad wrote: »

I've made 13% with Ablrate and now just invest up to the interest earned in each borrower or less

So you have lost confidence in those high returns to the extent that you will now only invest no more than the amount of interest that they have already paid you, rather than any fresh new money?

Doesn't bode well for OP, who is hoping to exceed the 8-12% rate of return which was historically available from certain P2P investments, without looking to take on any more risk than the typical risks associated with that level of return.

firestone

Maybe its not a lack of confidence in Ablrate in only reinvesting interest just that they have reached their limit of new money same as reinvesting div's in a fund
But still no sure why the OP if they can get 12% today on P2P is looking to squeeze a couple of % extra for only 1 - 3 years