When defining peer to peer investment, you will get to see that most people think of it as the borrowing and lending from each other without the need for intermediaries; mostly online. In this article, you will get to know and understand the benefits that you are exposed to should you think of investing in peer to peer investments.
The first thing that you notice with peer to peer investing is that it is easy and quick to invest as well as run as you need not be there physically. When you get the platform that you want to trade with, you do your research, learn how they operate and get started; it is as easy as that.
The other thing with peer to peer investment is that it requires low capital which means that almost every one can afford this. For those who are scared or feel uneasy in the investment, you can test the waters with one dollar so that you can know its workability before putting lots of cash.
Unlike the savings financial institutions, you will get to see that the interest rates are higher for the investor. When this happens, you get to see that you are able to grow your money limits over time.
It is important for you to know and understand that the return on investment is high for you as an investor as if you lend the money in fourteen days, the borrower pays up with the interest. There are some ventures that you will put your money into, only for you to wait forever for the returns to be realized. While making the assessment on the other types of investment and that of the peer to peer investment, you get to see that the latter has low risks which make it workable even when you are freaking out.
As the investor, you will get to see that you have the choice to continue the investment or withdraw. Being the boss at this point, you will get to see that the decision to withdraw or continue investment lies on you.
When it comes to the taxation, you get to see that peer to peer lending does not attract high taxes which is all to the advantage of the investor. According to the taxation rules, you get to see that you do not pay any income tax for the first $1000 that you earn.
When looking at the investment in such ventures, you will need to do your research ideally and talk to those who have been there before. It is only when you have the experienced professionals that you can have an easy time getting to know the workability of where you want to put your money into.