An update on our Investor platform - October 2020

What's the latest?

Well, the Business Property Loan we emailed our Investors about didn't last long, in fact it was fully funded by investors within 24 hours! If you missed out, don’t fret as we have at least one additional Business Property Loan coming to our marketplace later this week.

A little about the loan

The LVR (loan-to-value ratio) is under 20%, with a loan value of approximately $700k. The loan is being used for the construction of an additional dwelling and subdivision on an Auckland property. We expect to list this loan on the platform on Friday 16th October.

There’s plenty coming to invest in

Looking at our wider pipeline, we have over $5million worth of Home Loans and Business Property Loans at various stages due to settle this month. Once settled, we’ll look to pass them on to our investors.

Existing loans maturing

We’re also expecting two active business property loans to mature this month, so if you’ve currently got an investment in this class, keep an eye out for funds coming back into your Squirrel Call account.

To make this easier, our Tuesday email updates will include your Squirrel call account balance from Tuesday 20 October. We're aware that quite a few investors have requested this, and we’ve been trying to wedge it in since we introduced the weekly email a few months back.

Update on the Personal Loans investment class

There’s a longer waiting list for personal loan investments than we’d like, now up to 4 weeks in the 5/7year term and possibly a little longer in the 2/3year term. The shortest wait is likely to be in the 1-year term at 1 to 2 weeks. We expect at least $300k in total settling this week across all 3 terms, and we’re continuing to hunt out quality borrowers in this segment to snap your funds up.

We've also put our chef's hats on, and are cooking up some new products to grow the number of Personal Loans available. Once we're satisfied that the recipe is successful, we'll aim to launch these new products in the new year.

Investing tip for this month

When placing orders for Home Loans and Business Property Loans, make them in round numbers to the nearest $500. Why? Because we break all the investments into $500 portions, which makes it easier to transfer part of your investment to the secondary market should you choose to use it.

Example: If you make an order for say $5,650, we'll match $5,500 and you'll be left with an unfilled $150 order. If this happens, you can simply cancel the remainder of the order and the $150 will return to your Squirrel call account.

Arrears update

Portfolio arrears for personal loans are continuing to run at normal levels for the portfolio. The Personal Loan Reserve Fund is performing really well, and you’ll see the coverage ratio has just reached 4.00% of the portfolio.

We have no loans in arrears in our Home Loans or Business Property Loan categories, and the respective reserve funds are beginning to grow.

To see the latest platform stats, head to our Investments page.

The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Squirrel shall not be liable or responsible for any information, omissions, or errors present. Any commentary provided are the personal views of the author and are not necessarily representative of the views and opinions of Squirrel. We recommend seeking professional investment and/or mortgage advice before taking any action.

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