My new investments in February 2020

My new investments in February 2020

Still in São Paulo while the Corona virus panic grows in Europe

I am still located in Sao Paulo and the carnival is over. Now it is time to work. I have been rebalancing my portfolio heavily and have also been looking into a new potential opportunity for real estate investing here in Brazil. 

The foreign ministry in Denmark is currently advising all Danish citizens to go back to Denmark as soon as possible. I tried to get a ticket out early, but the booking service I used had errors. I got a ticket where only two of three flights got booked and later one of these flights were canceled. The call centers for changing tickets are extremely overloaded and kicks you off the call eventually. So there is no chance of getting trough during the next couple of days. The prices are elevated. I will give it a try later, but for now I am still in Brazil where all events, television filming, football matches and gyms are closing down. There is still not a lot of cases here, but it is growing. 

The Corona virus is making its impact on the stock market and creating new opportunities there for investors. I see a lot of people moving all of their funds from crowdlending and moving all the money into stocks. I do not plan to do this. I had 15000 EUR set aside, earmarked for this opportunity. I have about 10% of my portfolio in crowdlending. I think that is a good percentage. But if I start moving everything I have in crowdlending into stocks, I will lose the diversification I have between stocks, real estate and crowdlending. I may take the profits out and invest in stocks though. 

If you want to follow my travel adventures and get even more content you should consider following my Facebook pageInstagram or YouTube channel where I also publish videos from my platform visits in the Baltics and Southeast Asia. 

During the month I did not really release a lot of content. I did however finally publish an article about my favorite books about crowdlending, finance, investing and personal development. Most of them are audio books and you can get one of them for free! See my favorite books and get one of them for free here

How is my rebalancing going?

I decided to stop the autoinvest on several of my platforms and do a rebalancing of my portfolio to match the knowledge I have gathered over the last nine months. It will mean that my earnings will go down a bit during rebalancing as some funds will not be invested over days. Some of the platforms offer a bit lower interest rate than the ones I move the fund from, and more of my investments will be in real estate that mostly have bullet payments. This is the portfolio split I am aiming for. 

I decided to stop the autoinvest on several of my platforms and do a rebalancing of my portfolio to match the knowledge I have gathered over the last nine months. It will mean that my earnings will go down a bit during rebalancing as some funds will not be invested over days. Some of the platforms offer a bit lower interest rate than the ones I move the fund from, and more of my investments will be in real estate that mostly have bullet payments. This is the portfolio split I am aiming for. 

I decided to stop the autoinvest on several of my platforms and do a rebalancing of my portfolio to match the knowledge I have gathered over the last nine months. It will mean that my earnings will go down a bit during rebalancing as some funds will not be invested over days. Some of the platforms offer a bit lower interest rate than the ones I move the fund from, and more of my investments will be in real estate that mostly have bullet payments. This is the portfolio split I am aiming for. 

I am doing pretty well getting there. However, I decided to put a little more towards EstateGuru than originally planned. I am still pulling some funds out of Grupeer, and Crowdestor as they are still too big a part of my current portfolio. All other platforms have autoinvest enabled again. 

How did I rebalance and invest new funds during last month?

Most of the heavy rebalancing was done in January and February. The rest will most likely take 6-12 months as Crowdestor and Grupeer does not have secondary markets yet. That is perfectly ok. I feel pretty confident about both platforms. About half a year ago I moved some funds from Mintos to Swaper due to a bonus campaign and lowered interest rates on Mintos. They have now been moved back. I keep my stake in Swaper over 5000 € to keep receiving the interest rate of 14% instead of 12%. 

I added to my investments on 6 different platforms. I also lowered the amount of money on 5 other platforms. Two of them are no longer in my portfolio. Here is how I rebalanced and split up the funds on the 11 different platforms during the last month. 

Decreased exposure: 
Crowdestor: -117,85 €. 
Swaper: -2555,35 €.  
Peerberry: -838,87 €.  
Grupeer: -496,89 €. 

Increased exposure: 
Bondora: 331,53 € (Go & Grow). 
BulkEstate: 211 €. 
EstateGuru: 1529,34 
Evoestate: 199,02 €. 
Mintos: 3397,67 €. 

Learning about a potential new investment for short term rental

Like I told you about in last months review, I am looking into investing in a short term rental apartment here in São Paulo. The building I decided is the most interesting is the project “Downtown Nova Republica“. 

The reason I find this building especially interesting is the location and the architecture. This will be the second part of a two parts building, where the first building has a maskulin architecture and the second has a female architecture. The building is unique and I am sure that an apartment here will both rent and maybe later sell fairly easy. 

The masculine building is already constructed and in use. Last year I rented an Airbnb there to check out the facilities and it was wonderful. Perfect for short term rental. You also have the opportunity to leave the short term rental to the administration of the building as they run a hotel service for investors. 

It is located right by a park, so the right apartment would deliver a spectacular view over the two buildings, the skyline and the park. The location in the new center, with a metro station right outside, is just perfect. There are many interesting things within a short walking distance. 

The Brazilian currency is historically low these days. Even more with the coronavirus. During the time, until the project is turn-key in 3 years, the value of the property apparently rises about 35%. I still need to verify this though. If the brasilien Real goes up then that would be an added bonus. 

All that being said, as this time it would be very risky to invest in real estate, just on the plan. 

Which is the better product - Bondora Go & Grow or Mintos Invest & Access?

In the start of June 2019, during the P2P conference in Riga, I published an article about the new Mintos Invest & Access product. This is in some ways similar to the Bondora Go & Grow product. I wanted to transfer money back into Bondora Go & Grow. When I visited the Bondora office in Tallinn, they told me that 1/3 of their investor portfolio is in Go & Grow. This paints a clear picture that this type of product is really popular with investors and has great potential. Bondora has been in operation since 2007, but the Bondora Go & Grow product is fairly new. Both Bondora Go & Grow and Mintos Invest & Access promise that the investor can sell their investments and get the money out right away. With Bondora Go & Grow you can get all the money out no matter the status of the loans you are invested in, but offers a lower interest rate than Mintos Invest & Access. On the other hand, with Mintos Invest & Access investors can only get the money out that are currently not late. Some loan providers at Mintos also does not offer interest payments on late loans. So it is not quite clear which product is the best. 

I therefore decided to transfer 500 euros to each platform at the 1st of August 2019. I invested the money at the same time and I will not deposit any more money to the two portfolios. Every month I will then do a status of the progress and earnings, to share with you which portfolio is currently ahead on different parameters. This will be interesting!

Below you can see the results for both portfolios by the 1st of March 2019Mintos Invest & Access still has the lead in terms of earning as expected. However, 192.78 euros of the money invested in Mintos Invest & Access is not available for instant withdrawal. This is an increase of 12.55 euros compared to last month. So this month Bondora Go & Grow is ahead in terms of liquidity and Mintos Invest & Access is ahead in terms of returns with 27.28 euros versus 18.43 with Bondora Go & Grow. During February, for the first time during this test run, the average interest rate on Mintos Invest & Access went up. From 9.36% to 9.50%. Not a lot, but at least a move in the right direction. 

Here you can see the change in available amount for withdrawal and interest rate for Mintos Invest & Access since the start of the experiment. Bondora Go & Grow always has the same values. 100% can be withdrawn at any time and the interest rate is  6,75% capped. These are probably the numbers that will decide which is the best of the two products for you. You want to earn well, sure, but you may also want a certain level of liquidity. 

My portfolio in the start of March 2020

My crowdlending portfolio currently consist of 21 platforms. 
CrowdestorVIAINVESTMintosPeerberryGrupeerPropertyPartnerBulkEstate, Swaper,  Estateguruand Crowdestate are dominating. 

I currently only have minor funds on NEO FinanceEvoestateFinbeeDebitum NetworkRobo.cashIuvo GroupBondora, Housers, Brickshare, Reinvest24, and DoFinance. These are platforms that I am currently testing, new platforms or just interesting platforms that I may put more money in later. I try to diversify both on loan type and loan provider but also on sector, country and platform. In the pie chart below, you can see my distributions on March 1st 2020.  If you are seeing this post later than March 2020, you can find the newest numbers on the My Crowdlending Portfolio page. 

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77342 € in my crowdlending portfolio
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593 € of passive income earned this month from crowdlending

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