Portfolio update July 2017

Portfolio P2P investments Swaper Robo.cash Twino Mintos Bondora Crowdestate review

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Summary of July

I was on holiday almost all of July but that doesn’t stop me from looking for good investment opportunities.

As stated last month, I was quite keen on trying out Viainvest . However, after only a few hours I made the decision that Viainvest not a good match for me. I started writing a longer explanation, but to keep this post short, I decided to make a separate blog post explaining my decision. (Hint: Internal taxation.)

Instead, I decided to invest into two new sites, Robocash and Crowdestate. So far I’m very pleased with the experience with both of them. I’m currently writing a review on Robocash that I will publish this week. A review of Crowdestate will also follow shortly.

Let’s get to the numbers

Bondora returned 199,16€ (-26,64€ less than last month)

Twino returned 119,56€  (-0,52€ less than last month)

Swaper returned 43,77€ (+12,12 € more than last month)

Robocash returned 4,17€ (first month with Robocash)

Mintos returned 11,96€ (-0,13€ less than last month)

This gives me a total of 378,62€, (-11,00€ less than last month)
which equals 12,62% of my first goal, (-0,37% less than last month)

Remember, you can see the interest history, month over month, on the right side of the page. I hope you find it as exciting to follow as I do.

July was a weak month for Bondora, just like last year. August will probably be low as well. Lenders like their holidays and paying back loans becomes second priority for many. If history continues they will catch up in the fall.

Bondora interest historyMintos

As you may know, I use Mintos for my children’s mutual savings account. Mintos is probably the P2P company I trust the most, which is why I put their savings there.

The refer-a-friend program that gave you 1% extra cash on every deposit for 90 days expired on 07.07.2017. If you have not yet invested with Mintos and missed the limited offer, I have good news for you. If you register through my link you will still receive 1% extra on all deposits for 90 days. That means, if you invest e.g. 1.000€, 1.010€ will be credited to your account. Loans with buyback and interest rate of 13.5% can be pickup up at the moment, which I think is quite good. 

If you deposit through my link you would also help my daughters (age 5 and 6) reach financial freedom faster, as they would receive 1% too. They only have 1.142€ invested so far, but they love watching it grow every month, even though it’s just a few euros. They would be more than happy for your support!

Where will my spare money go in August?

I’m trying to get it to bring most of my investments to min. 5.000€ to spread the risk more evenly between the platforms. I’m planning to add another 2.000€ to Robocash in August and if Crowdestate adds another investment opportunity (with an estimated return above 15%) I will probably add another 1.000€ here as well.

Engage in the conversation

I love reading your comments and being on this journey with you. If you want me to cover any certain topic or review a specific site, let me know in the comments below!

4 Replies to “Portfolio update July 2017”

  1. I found your blog as it was discussed in the forum here: http://p2pindependentforum.com/thread/9361/huge-losses-private-bondora-investor

    I can’t understand why your Bondora performance does not seem to worry you and you continue to reinvest interest earned. Currently you have 70% in default and from the figures you report in July the amount of new default is much more than interest earned. At the moment your graph of net interest last month looks like you get about 50€/month recovered maximum. At this rate is would take 30 years to recover the defaults and if no money is seen for even 3 years you can probably forgot it. You are probably looking at and minimum of 70% loss for loans in default.

    Due to the way Bondora calculates net return, your reported net interest will deteriorate as the loans go on because in the early stages most of the payments are interest and there is no principal lost that is subtracted from the interest to get net interest. After a high interest loan has been in default for 2 years, the principal starts significantly overtaking the interest so your Bondora calculated net interest in just going to keep getting less and less on average until it is actually negative. This is discussed extensively in the forum I referenced so I suggest you take a look and read up on this.

  2. I commented here before seeing the comments on the previous month. Jørgen, it doesn’t sound like you will be convinced by what others are trying to tell you and is evident in the loan book history so I’ll just wish you luck with your goals.

  3. Hi Luke.

    Thank you for your comments, I really appreciate having you here.

    Just for your information, I have read and engaged in discussions with other investors and Bondora staff probably more than you can imagine. I also know everything about the amortization method Bondora uses and I completely understand the (very disputed) method Bondora uses for calculating profit works.

    There’s a few reasons why I’m not worried about Bondora. I’ll try to list them here:

    First of all, when I started investing with Bondora I knew it was high risk and I originally decided not to withdraw for at least 7 years to account for the very long recovery rates. Due to the performance over the past year, I have adjusted this decision to wait at least 3 years from investing start date to see if the trend reverses.

    Second, take a look at the “Cumulative cash on cash return” graph from the official statistics page: https://www.bondora.com/en/public-statistics.

    You could easily argue that Bondora generated 0 revenue from 2009-2017 because the blue columns combined (interest) are less than the grey columns combined (outstanding principal). You could also argue they didn’t make any profit after 2014. You could also argue that they are making double digit returns year after year with a slip of 3½-4 years. All of those statements could be correct. It all depends on future performance. When I started investing in late 2015 the graph looked quite the same as it does today.

    Third, historical recovery performance says nothing about future performance. No one knows if it will be better or worse. In the stock market, when everyone yells “sell” and won’t touch the company it’s usually the best time to buy. Could the same strategy be correct in P2P lending? I don’t know, but I stick to my plan and focus my energy and new money into new investment opportunities. I stopped putting fresh money into Bondora in December 2015.

    And last but not least, even though the invested amount seems large to some readers it’s nothing I worry about. The amount I invested in P2P sites is only a part of my overall portfolio. I have other more speculative investments such as stocks as well. I don’t count those as passive income, which is why I don’t include them on this site.

    I share my strategies and experiences for my readers to make their own conclusions. If you are more confident about how you want to invest after reading my blog, my goal has been accomplished 🙂

    Once again, thank you for taking time to post your comments. Every contribution to discussion enhances the value for all readers!

  4. And just for the record.. I have 51,83% defaulted loans, not 70% 🙂 (defaulted amount 19.872,5€ / outstanding principal 38.339,77€)

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