in short yes
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wow you guys with above 15% RAR are doing well. I have about 1400 loans (about 5 months to 6 months invested) and well spread out. Changed my criteria as I went about 3 times. Now trying for a normal distribution curve. My RAV is 14.57%. According to my own spreadsheet it should be 16.4%. But that is whittled down mostly with the service fees for the early repayments. As mentioned in my earlier post, the service fee is now an equivalent of about 2.5% instead of 1.25%
I worked out the slow increase in equivalent fees from one month to another earlier when I was in the office and will post it here later.
I am slowing down committing more funds as I do not want to risk too much too soon - I think a clearer picture will emerge after at least 18 months of investing
Just been looking through this page
https://www.harmoney.co.nz/investors...ace-statistics
Some really good info there, it will take some time to go through it - but at least some of our requests for information have been answered
My Rar is 12.47%
I have been investing for about 9 months now and I do my own 30-62 day moving average return after fees and tax, which at day 55 (nov30days+ dec25days) is 14.26%
My investment spread is broader than most and I am very strict in my selection of loans based on RvI (repayment ability versus borrower income)
I am happy with a more conservative return as I reckon it will be more resilient in the long term
Attachment 7772
I'm new to Harmoney and prior to investing, did a lot of research to check out the viability and safety of p2p lending. I had several email discussions with Mark Bardi, at Harmoney, and got prompt, straight answers back which did ease any concerns I had.
I did ask for a number of stats on performance, write-offs, arrears, etc which he answered but are now being published for the world to see. Good work Harmoney!!
I have read this entire discussion from the start and can see that there were some issues early on but I think these have either been addressed or are in the process of being addressed.
With the number of other p2p companies available, all operating differently, there is plenty of choice for investors to pick one that meets their needs.
The one thing I would like to see change at Harmoney is the fees paid on re-writes. I'm sure they can find a balance that makes this fairer on investors and hopefully the negative feedback received will prompt them into addressing this.
It would be great to hear from other investors what their own investment strategies are so that we can all learn from those more experienced. Mine is fairly simple at this stage:
1. Not too worried whether it's 36 or 60 month. I'm in long term and there will be a number of re-writes expected no matter what the term.
2. Simple loan selection....give weddings, holidays, buying presents etc loans a miss.
3. Amount I'm prepared to loan each category is A=6 notes, B=5 notes, C=4 notes etc. But try sticking with C to E mainly.
So far, 157 loans, 2 arrears (paid now), and 2 paid off. Reinvest all interest and principal received.
Happy with it so far.
Does anyone know how often the RAR(realised annual return) figures will be updated? I just Had 2 more loans written off today - Admittedly when I look back at them I cannot work out why I invested in one of them as it does not even come close to meeting my normal Criteria
Hi MLT,
Read your interest in loans selection so here is my penny worth.....
I look for > Length in steady Employment ( 2 years Min ) + Length of residential Tenure ( 2 years Min ) + plus Monhtly Earnings ( I look for a Harmoney Monthly repayment that is Max 10% of Borrowers Monthly Income.
I will not lend for Weddings, Holidays or Loans to Family Members... Does a Borrower ever lie with their Loan needs description? I guess, so but how can we tell?
I am most comfortable lending for Debt Consolidation and Business Expansion.
Note: Harmoney borrowers info does not tell you if Borrowers Monthly Income is after Tax and also what other Fixed Outgoings a Borrower may also have ( Mortgage, Car Loan etc ) .... That would be really good to know.....
Hope this assists..... Happy New Year everyone :)
Repayments not more then ~10% income.
No Excessively bad English or typing in description(small typos are OK)
Eg won't be lending on this current one "hi thanks for trust me to barrow online in you lending"
I also skip ones where description comes across as they think the loan(or worse just money) is their entitlement or right
Usually 3 or less enquiries, longer job and residence is better but not a requirement
Hi,
I'm new here, so please be gentle!
Why does everybody think that they are better able to determine risk than Harmoney who are professionals in consumer finance.
Harmoney have access to far more borrower information than we do and with their expertise create a credit rating (with associated default rate). So why would we, with just a small subset of the borrowers details, be able to do better than Harmoney?
I just accept Harmoneys ratings.
But what I do consider is loan term - I only invest in 36 month loans as there is no secondary market to provide an exit path.
And I have also been stung by rewrites and so I only invest in loans that are at the top limit (ie. can't be increased further) or are rewrites (on the assumption that it won't happen again)