The first new loan offering of 2108 has got off to a flying start. More than 27 per cent funded in less than a day, lenders are demonstrating great enthusiasm for this property-backed offer.
As is our wont on these occasions, we let the borrowers speak for themselves – and remind you that we have used our best efforts to ensure that all representations are true, but cannot categorically warrant that this is so. The offering has an indicative yield of 9 per cent, and an A rating from our credit-analysis committee.
[The] company is a substantial property development business and we have been trading for 9 years. We focus on purchasing and developing listed properties for residential use in leading cities in Germany including Berlin, Frankfurt, Hannover and Leipzig.
The shortage of residential property in Germany means that there is an opportunity to increase our level of development activity and that is why we are seeking to borrow through Money&Co.
We have completed over 50 projects in the past 9 years with a total value in excess of 1.5 billion euros. Germany has been the top performing EU economy over most time periods and it showed particular resilience in weathering the European debt crisis. As a result, it has had a stable housing market…
A review of German house prices over many years evidences an extremely stable market with small increases (c.1%) seen each year. As a result, the housing sector in Germany is viewed as strong, stable and predictable with an exceptional long-term outlook. We have experienced strong growth as demand for residential property has increased and we see this continuing for the foreseeable future.
Peer-to-peer (P2P) lending is about bringing individuals seeking a good return on capital together with businesses seeking funds to grow. The average gross return achieved by lenders is 8.6 per cent (7.6 per cent net). This compares with 1.3 per cent, which is the best return currently available on cash deposit with a bank or building society, according to comparison sites such as Moneyfacts. See also risk factors, at the foot of this page.
In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users.
All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment.We write regularly about these three key factors. Here’s an earlier article on security, access and yield.
If you haven’t made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.