Peer to Peer Lending: Portfolio update July 2018
Peer to Peer Lending: Portfolio update July 2018
Hello, fellow alternative investment seekers!
If you are looking for a smarter way to invest, then this portfolio update of my first full month should get you at least a little bit excited.
During June 2018 I started with peer to peer lending with the first platform: Mintos. Eventually, it led to me investing a total of €5500 spread across 6 different platforms. Originally I was hoping to invest a little bit more at once, but some unforeseen costs have slowed down my investment strategy there.
However no worries, the goal I had initially planned by 2025 (more about this in the About page) is still achievable and I will try to add some more funds later on in maybe one or two more platforms.
The numbers you see here are 100% real and followed by screenshots. Some platforms had a starting bonus and I started investing in halfway June. But for all of these, the interest received numbers are from the full month of July 2018.
So a total of €60,30 interest received in the first month bringing the total account value to €5571,47. There are some overdue loans in the portfolio and unfortunately, Crowdestor only pays the full month of July (and even a couple of days in June) on the 5th of August. I’ve already put €15 in for it.
Update 5th of August: €20 was added to my account today, perfectly on time, which is from a full month + one week in June.
This was my first platform as it had good interest rates and a very good history. However, during the month of July, one of their biggest Loan Originators (Mogo) did a lot of buybacks. This quickly led to the interest rates dropping from 13-14% to 10-11% in the Primary Market. Mostly due to lower availability of high-interest loans. The secondary market is currently also not very interesting.
So at the moment, I would recommend to not invest in Mintos yet and let the platform bounce back. This is also the reason why almost half of my funds (€449,44) currently sits idle in my account. I’m fully aware this might affect my August update in a negative way. But we’ll see if they can recover.
As you can see however on the screenshot below, I did make €0,48 on some secondary transactions (early July) and got some loans with 1% cashback giving me €2,10 in Campaign Rewards.
I’m still not fully convinced about this platform, hence the reason why this is the one I invested the lowest amount in. However, the returns are decent so far. What I don’t really like is that for all the received interests – if you have an auto invest set as I do with Portfolio Pro – it invests into €1 loans with a 36-month duration. That is a bit silly to me and I’m really no fan of it. Especially since you can’t set a minimum amount to invest.
For now I’ve paused the auto investing and will let it build a little bit before turning it back on.
On this platform, I was initially struggling a bit getting my €1000 invested in 14% loans. But to be honest, I didn’t want to lower the interest rate so I didn’t mind having to wait a little longer. For July, most of the amount was always invested so I’m fairly happy about that.
Interest received is actually rather low, and almost the same as from the Bondora platform, where I only invested €500 in. I’ll fully explain the reason once I get to writing reviews of the individual Lending Platforms.
The reason why the interest is rather low at €5,73 is because of the bigger amount of overdue. This means the loan term of 30 days has run out, but Robocash hasn’t received the principal and interest yet. As all the loans have buyback guarantee I’ll wait to see what that would mean for my August returns, but I’m expecting them to be higher. Currently, the overdue amount sits at €8,70, which potentially should have brought in €14,43 for July. So I will keep you updated on next month’s post.
As mentioned already above, I started investing in Crowdestor in June, however I still haven’t received my first full month. So I’ve provisionally put the income of July already in the received amount at the top.
All in all I’m expecting solid returns from them, in spite of it being the dullest website of all the platforms. Could use a little work with perhaps better reporting options, yes, but all that matters is the steady and nice returns, right? So I’ll update the post once I know that is the case for sure with the exact interest numbers.
The interest from Grupeer is rather low, about half of what I would expect in the coming months to be. I must admit I kept some funds un-invested as I was waiting for new loans to come in during July. Reason for that is because I didn’t want to only invest in the Promenada development project and I was waiting on new loan deals.
However, after a week or so in July, I did invest the remaining sum. So for August, the returns should be on the full €1000 invested, as interest should start coming in a week or two for those.
Keeping the best for last? Perhaps if I’m honest!
It was the last platform I invested in, but so far it has the highest interest returns. Granted they do have above average interest rates (highest currently is 22% which I’m invested into) but so far the platform has given me a very good impression with a clear overview via their “Investments repayment schedule” on the main Dashboard page after logging in. To me that is important, so I know exactly when the interest is coming in and which amount I can expect.
No delays at all on their loans so I can only be happy about it. Also, the €7 bonus to start investing with them was a nice initial boost. However, for new investors I have a little bit of bad news. They have lowered the first deposit bonus to €5.
All in all I’m happy with my first month. At this point, I’m only taking baby steps so we will have to see where it leads to. But again a Solid plan, and a patient Core, combined with the necessary due diligence should spread the risk enough to keep this a smart investment.
Before we end I’d like to take a moment to add a small note. I’m travelling to the Philippines in the last week of August for 3 weeks. So depending on our activities there, my next update post might be delayed by a couple of days.
Have a wonderful summer everyone, and feel free to let me know any questions, suggestions or concerns you might have!