EstateGuru funded € 14m in loans in January 2021, borrowers repaid 61 loans worth € 11.3m, defaults up 6%
EstateGuru revealed that they had financed a total of 14 million euros in loans. The P2P lender also confirmed that Estonia was the “most active country”, closely followed by Germany and Finland (collective total of 5.8 million euros).
In January 2021, the borrowers managed to repay 61 loans (11.3 million euros) with “an average yield of 11%”, notes EstateGuru. The lender also mentioned that it now expects this stable repayment behavior to continue for the remainder of the year.
In January and the first days of February 2021, 8 loan recoveries took place – the first default was “resolved in Finland (0.2 million euros) and the rest were smaller loans in Estonia (total of 0 , 45 million euros) “. EstateGuru confirmed.
The P2P lender further noted:
“The overall default rate has risen to 6%, mainly due to a default in Estonia (nearly 1.0 million euros). We are seeing solid progress in handling defaults in Latvia, where our collection partner has mitigated collateral risk by transferring defaulted collateral on behalf of our security guard. This will help us to sell the collateral without litigation if the borrowers do not meet the conditions agreed in the transfer contract.
(Note: you can find graphs, tables and other more detailed information on EstateGuru here.)
The EstateGuru team also commented on how Wallstreetbets was able to create a new investing phenomenon while reinforcing “an old truth”.
EstateGuru noted that many people around the world have been following the Wallstreetbets chain of events closely which has created a lot of controversy in recent weeks.
The lender wrote in a blog post:
“The phenomenon, which shook the stock market in an unforeseen way, calls into question the market fundamentals and the hypothesis of efficient markets while underlining the effect of digitization on investment. We have found ourselves in a situation where the established rules and presumptions are being rewritten, some of them permanently. “
EstateGuru has predicted that in the future investments will be much more diverse and “less exclusive”. The lender also mentioned that “as alternatives emerge, there must also be know-how development”. EstateGuru went on to quote an old proverb: “Knowledge is power, and this applies especially to the investment market”.
The lender added:
“On average, the operators who have navigated market fluctuations the best have always invested outside the stock markets as well, so market risk can be better managed by diversifying investments into different asset classes, which are not correlated with each other… Real estate and real estate are among those asset classes which stabilize portfolio volatility, while offering satisfactory profitability.
For example, the real estate-backed lending asset class has attracted investments worth more than $ 100 million in the past 8 months through the EstateGuru platform, the company claims. They pointed out that “the attractiveness of investing” increases when nobody “bets on the end result of the bond and therefore these alternative investment opportunities, which are not directly related to the stock market, are necessary” .