Thursday, Nov 22, 2007
Great article on but-to-lose
ThisWasMoney: The buy-to-let bubble bursts
So could buy-to-let be Britain's sub-prime? Certainly, the economics no longer stack up. Rental yields have fallen to the point that they no longer cover mortgage and maintenance costs. But not everyone will be able to carry the burden for long. The selftaught landlords, who came late to the market, might well seek to dump property, driving prices and rental values down further causing a downward spiral. YES YES AHAHAH HAHHAHH AHAHH
Posted by confused76 @ 03:32 PM (727 views) Add Comment
3 Comments
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1. confused76 said...
and more on by-t-lt at this link
together with a picture of Terrington and a great chart. Enjoy!!
Paragon sparks fear of meltdown in buy-to-let
http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=426648&in_page_id=56
The crisis at Paragon has plunged the future of the buy-to-let market into doubt, and could spell the end of a great British obsession
The crisis at Paragon, Britain's third-largest buy-to-let lender, and at Northern Rock, the fourth, has trashed sentiment in the industry since the summer.
In a matter of months, buy-to-let has gone from a great source of income - for professional and amateur investors alike - to a potential disaster area.
Five interest rate rises since August last year have made buying more expensive, rental returns in many areas barely cover mortgage costs, and the collapse in house-price growth makes it a highly unattractive investment proposition. Liz Peace, chief executive of the British Property Federation, says: 'Market conditions have clearly brought an end to the boom in buy-to-let.'
Numis analyst James Hamilton said with buy-to-let yielding just 3.75%, investors need house prices to keep rising to make decent returns. 'That is not going to happen,' he said. 'The buy-to-let may not be dead in the water, but it is dying.'
UAAAAAH AHHHHHHHUUUUUUUUUUUUHAHHHA HHHHHHUHAHHHAHAHHAAH H UAUUAUHUHUAUAUUHAUHUA
2. Saintjay said...
If northern rock is the fourth biggest BTL lender, and Paragon the third (Sounds regal that) - who's no.1 and no.2?
3. Simon said...
Either that is an extremely evil laugh or you are enjoying yourself WAY too much.