Considering banks are paying almost no interest, I thought it would be great to share this. On average you will be earning a 6-7% return.
I have been using it from last 2 years and the interest payments haven't missed for even once.
$150 Each Referral Bonus for Referee and Referral ($5000 Minimum Investment) @ Funding
20
d-hunterz on 19/02/2021 - 17:06 funding.com.au (385 clicks)
Last edited 19/02/2021 - 21:51 by 2 other users
Last edited 19/02/2021 - 21:51 by 2 other users
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$50 to the referrer & referee.
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Errrr … No.
It's nothing like an ETF.
Comparing interest on a savings account with a mortgage backed financial derivative is absolutely deluded thinking. With a 6% management fee no less.
Yeah this guy must be from wsb lol
no rocket emojis, can't be one of them
Referral links not working. Admin might need to refresh.
Please use the report link in future. We only just happened to see this.
There is an issue with the URL in the way it interacts with our system. We've now switched to private message only via the referral system.
Cant understand why someone would put money a peer to peer like this over traditional investments. Only for short term investments I suppose, but why risk your capital for a short term investment?
Has anyone got experience in situation where the borrower defaults? Do they really sell the property and pay back the lender and how long does this process take? If the advertised LVR is true and accurate then the risk should be low or am I missing something here?
If they are going peer to peer and paying 8% then they have been declined by every bank. You don’t hold the deed to the property like a bank would (it’s unsecured debt). So a low LVR doesn’t matter if they don’t have the cash flow to meet the repayments.
According to the PDS, it's a First mortgage security, hence it's a secured debt.
See https://www.funding.com.au/investing/I believe these peer to peer lenders distribute the risk as an insurance, so your $1,000 investment is lent to, say, 100 different borrowers. If one of them defaults you'd only lose $10 (obviously 100 people like you will lose $10 each).
According to their website, your investment only belongs to one borrower and it's secured by the borrower's property. It's a first mortgage security so it should be quite secured. I am struggling whether I should give this a try.
Perhaps the biggest risk is what happens if funding.com.au closes down? Will I lose all my capital?
Op your link is just for a login page with no info. This page at least let’s people know what it’s about https://www.funding.com.au/common-terms/peer-to-peer-lending…
Make sure you know what you are getting yourself into. Just becos someone went to the effort to create a PDS and have the relevant satisfactory compliance doesn’t make financial products any less safer than lending your money to someone you don’t know with a “I am good for it, trust me”.
If you don’t understand how it works, pay your accountant or financial planner for an hour of their time to explain it to you.
You worked hard for the money, don’t let it go so easily.
What are your returns after fees OP?
Cannot be much considering that "… for every $50,000 you have in the Funding Investment Trust you will be charged $3,000 each year."
6%pa fees?
According to PDS page 28 (https://www.funding.com.au/wp-content/uploads/2020/06/Prodcu…), the 6% fees are paid by the borrower:
Management fees or the margin is no more than 6% of the Loan amount per annum (paid by the Borrower)
I hope OP can confirm if this is the case.
Referral links not working.
Borrower pays 6 percent fees and you get 6 to 7 percent returns . Therefore borrowers is paying at least 12 percent. What sort of borrowers are paying that…..
Note that the person who refers you needs to have also already invested $5k. I got burned by this, because the person who referred me hadn't:
"The Promotion is open to anyone with an existing Funding online account and who has invested $5,000 into available investments.
Is this like an ETF? Something like Raiz or Commsec pocket?