LandlordInvest overhauls secondary market to boost liquidity
LandlordInvest has unveiled changes to its secondary market in an effort to boost liquidity and fairness for investors.
The peer-to-peer property lending platform has made a change to its terms and conditions to stabilise the secondary market and is also increasing its sale fee as part of plans to allow investors to discount loans.
From today (15 April), investors may not relist a loan that they have removed from the market for 14 days.
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“If your secondary market listing is at any time removed by you, you may not list the loan or loan part on the secondary market for 14 days,” the new clause in LandlordInvest’s terms and conditions states.
The platform is also working on a discounting tool.
“We will soon release a discounting feature, which will allow investors to list their loan or loan parts at a discount to further enhance liquidity on the secondary market,” LandlordInvest said in a note to investors.
“Once this feature is available, it will be communicated accordingly.
“The secondary market sale fee will, once the discounting feature is released, be increased from 0.25 per cent to 0.5 per cent to cover the development costs of the new feature and ongoing administration of the secondary market.”
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