Thursday, Jun 21, 2007
Buy-to-Lose the first casualty
thisismoney.co.uk: Buy-to-let bubble 'will burst'
James Hamilton, banking analyst at Numis Securities warned that there were massive potential problems because many individuals have invested huge amounts of their total wealth in buy-to-let. Some retail investors have taken the very high risk strategy with such a high concentration of their money in a single asset class.
Posted by uncle chris @ 09:15 PM (183 views) Add Comment
6 Comments
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1. Scott said...
"Of course, if the buy-to-let market goes into meltdown B&B would be in trouble but then we'd all be in trouble"
This part I can agree with. Oh dear. That Nostra Darmus bloke was right, the world is going to end!
2. confused76 said...
B&B "reporting a near doubling of net lending in its first half and predicting that the buy-to-let market would continue to outperform the rest of the mortgage market"
if the BTL market will "continue to outperform" , how comes B&B stock is 13% down this year!???
3. Rimmer said...
Bummer - but such is life, greed causes people to act stupid will lead to a verrrry loooong and painful lesson.
4. Uncle Tom said...
So the B & B have gone for the BTL market - pulling in lots of nice fat arrangement fees in the process - pushing their profits up nicely - for now..
But the city looks at the long term. Behind those fees are risky liabilities that will generate little further profit.
The City is not enthralled...
Behind those bullish press releases, I sense the existence of many crossed fingers..!
5. dohousescrashinthewoods said...
According to the market, my virtual spread bets against property companies are closing in on 4K profit, up fron 3-and-a-bitK yesterday.
I'm not too concerned with profit and loss in this virtual portfolio, but it does give a neat way of tracking what's going on.
To balance this, the entire FTSE has been heading south, so hardly surprising, but I am guessing these shares are losing value faster than the index.
6. dohousescrashinthewoods said...
Just passed 4K