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B & B Shares Down 30% From Peak On Bad News For B T L

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http://business.timesonline.co.uk/tol/busi...icle1966096.ece

From Times Online
June 21, 2007
Tempus: B&B's buy-to-let worries
Miles Costello
Comment: Bradford & Bingley has carved itself a profitable niche in the buy-to-let market. It has ridden a five-year long wave of homebuyers' interest in buying second properties to benefit from a rental income that will almost certainly be higher than their mortgage repayments. On top of that, buyers can enjoy the uplift in house prices. Analysts have long worried about B&B's exposure to a downturn in buy-to-let, in line with a wider stalling of the housing market, and that worry has taken hold this year. Four interest rate rises have not helped – putting strain on homeowners but also pushing up B&B’s costs of funding new discount mortgages and trimming net interest margins (the difference between rates charged to borrowers and those paid to savers). A glut of rental properties has also hit yields.
B&B’s shares are down 30 per cent from their peak
last March and touched a low of 397.25p earlier this month..../

The monster is dying. The end is nigh for BTL and along with it the false hopes of millions of greedy sheeple who saw it as a get rich scheme at the expense of FTBs.

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No wonder they have been ramping the BTL market recently - the sad thing is that the the media seem to lap it up without question.

....the regulators should be controlling their spin .......try finding a regulator for this market......they are all ducking and diving as misselling claims seed on the horizon.........

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DOWN 1.07% today:

BRADFORD & BINGLEY (LSE:BB.L) Edit

Last Trade: 416.50 p

Trade Time: 4:35PM

Change: Down 4.50 (1.07%)

Prev Close: 421.00

Open: 421.00

Bid: 416.25

Ask: 416.75

1y Target Est: 460.00p

Pessimism about BTL could tank them soon. Shareholders might want to think about selling off their shares now before another 30% gets wiped off?

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DOWN 1.07% today:

BRADFORD & BINGLEY (LSE:BB.L) Edit

Last Trade: 416.50 p

Trade Time: 4:35PM

Change: Down 4.50 (1.07%)

Prev Close: 421.00

Open: 421.00

Bid: 416.25

Ask: 416.75

1y Target Est: 460.00p

Pessimism about BTL could tank them soon. Shareholders might want to think about selling off their shares now before another 30% gets wiped off?

Surely this cannot be right, if you read their report on Cefax the BTL market is bouyant. They wouldn't be telling fibs! would they?

Oh! I've just read the line at the bottom.

There is a small increase of people in arrears.

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What a day, I'm worn out from so much nice bear news!

^_^

me too, off to watch the BBC six o clock news.

Everythings fine in their view of the universe except Iraq of course. Bound to have a nice "skate boarding duck" or something in the light hearted "and finally" bit at the end

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http://www.forbes.com/markets/feeds/afx/20...afx3843732.html

We believe growth in the buy-to-let market is a hostage to rising interest costs, in line with the broader market,' Collins Stewart analyst Alex Potter, who has a 'sell' recommendation on the stock, wrote in a note to clients.

'Sooner or later the buy-to-let investors will look to liquidate their portfolios and B&B's net interest income will implode,' said another analyst, who asked not to be named.

Oh dear

Edited by Ash4781

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me too, off to watch the BBC six o clock news.

Everythings fine in their view of the universe except Iraq of course. Bound to have a nice "skate boarding duck" or something in the light hearted "and finally" bit at the end

or some presenter doing a fashion parade at ascot and sucking as much limelight as possible.

stay tuned for business news sponsored by easyjet where Declan will be discussing that all important subject of supermarket plastic bags...........

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This is Money is quoting:

James Hamilton, banking analyst at Numis Securities, said: 'A lot of people have made very good money in the past from buy-to-let. But if the housing market goes flat, there is every likelihood that many of them will want to sell up.'

Hamilton 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.

'If it all goes wrong they could claim there is an issue of mis-selling, which in turn could lead to political pressure for the Office of Fair Trading or the Financial Services Authority to investigate. '

........for a "Banking Analyst" to quote this is amazing....tell him the FSA have no authority over BTLs!........the rest are running scared........whose money?........is it not borrowed money?........why do This is Money get off with this rubbish by quoting such 'sources' ........ suggest he speaks to some of the lenders.......they are running scared....... :o

Edited by South Lorne

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The monster is dying. The end is nigh for BTL and along with it the false hopes of millions of greedy sheeple who saw it as a get rich scheme at the expense of FTBs.

I don't think you of all people should use the word greedy. As if you aren't hoping for a property price plummet so you can pile all your money in and make a killing on the next boom.

Edited by nohpc

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I don't think you of all people should use the word greedy. As if you aren't hoping for a property price plummet so you can pile all your money in and make a killing on the next boom.

Pound to a penny says you can't goad RB enough to either apologise for cheering-on a crash, or to admit that he is just waiting to pick up the pieces after a crash (the same as Property Guru). ;)

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or some presenter doing a fashion parade at ascot and sucking as much limelight as possible.

stay tuned for business news sponsored by easyjet where Declan will be discussing that all important subject of supermarket plastic bags...........

:P excellent sign of the times! Very observant.

I liked Realist's description of the 'monster'dying. THe youth should all come out of their hovels and have a party like in the end of Return of the Jedi (Return of the FTB)

WIth a funeral pyre for Darth BTL

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http://business.timesonline.co.uk/tol/busi...icle1966096.ece
From Times Online
June 21, 2007
Tempus: B&B's buy-to-let worries
Miles Costello
Comment: Bradford & Bingley has carved itself a profitable niche in the buy-to-let market. It has ridden a five-year long wave of homebuyers' interest in buying second properties to benefit from a rental income that will almost certainly be higher than their mortgage repayments. On top of that, buyers can enjoy the uplift in house prices. Analysts have long worried about B&B's exposure to a downturn in buy-to-let, in line with a wider stalling of the housing market, and that worry has taken hold this year. Four interest rate rises have not helped – putting strain on homeowners but also pushing up B&B’s costs of funding new discount mortgages and trimming net interest margins (the difference between rates charged to borrowers and those paid to savers). A glut of rental properties has also hit yields.
B&B’s shares are down 30 per cent from their peak
last March and touched a low of 397.25p earlier this month..../

The monster is dying. The end is nigh for BTL and along with it the false hopes of millions of greedy sheeple who saw it as a get rich scheme at the expense of FTBs.

This was a good post RB to put your line " and all the poisons are beginning to hatch out in the mud "

BTL became a mugs game 2/3 years ago and all the sheeple that piled in since then are going to be financially hammered , it's just like the dot com boom that ended in March 2000 , 1,000's back then pouring money into start up companies the've never heard of and didn't understand, a media frenzy encouraging them along , starting share clubs that all collapsed soon after , yes BTL is over this is the end of the denial stage as the panic and reality starts to set in .

Sit back and light that cigar cos it's going to be fun ................................................. B)

Edited by grey shark

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I don't think you of all people should use the word greedy. As if you aren't hoping for a property price plummet so you can pile all your money in and make a killing on the next boom.

My interest in seeing Great Crash 2 become a great success is really two fold:

1. I am effectively priced out of owning a reasonable house for now and into retirement.

2. I see HP-INFLATION as a form of economic disease that should have been prevented through prudent lending standards and a central bank with a remit to control inflation--in whatever form or asset class it may appear.

When the economists look back at the miracle economy and why a great bust followed the great boom they will blame it all on greed and political mismanagement. I will not be sorry to see the HPI-MEW monster die and for life to hopefully return to normal in the sense that the average person on an average wage can actually afford to buy a place to live.

HPI-MEW was a great evil to visit upon this land and the sooner it poisonous shadow is removed the better.

Will I take advantage of the post-crash market and buy a house. Of course I will and so will thousands of others who have been priced out by Gordon's miracle.

BTW, B&B are getting hammered by the "experts" today:

http://uk.biz.yahoo.com/22062007/214/frida...ovo-keller.html

Friday June 22, 08:30 AM
Friday tips round-up: Bradford & Bingley, Renovo, Keller
LONDON (ShareCast) - Although B&B is well managed and, trading at less than 10 times this year's forecast earnings, is not expensive,
now is not the ideal time to be jumping into this sector
.
A yield of about 5% and the likelihood of a further release of capital later this year, may be enough to keep existing shareholders interested. But for new investors,
there will be better times to buy
. Hold.
The prospect of further rate rises and uncertainty on
how novice landlords will behave under strain are a powerful argument for taking profits
adds the Times.

Bottom line: if you are in BTL--get out! NOW!!!

Edited by Realistbear

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1. I am effectively priced out of owning a reasonable house for now and into retirement.

2. I see HP-INFLATION as a form of economic disease that should have been prevented through prudent lending standards and a central bank with a remit to control inflation--in whatever form or asset class it may appear.

When the economists look back at the miracle economy and why a great bust followed the great boom they will blame it all on greed and political mismanagement. I will not be sorry to see the HPI-MEW monster die and for life to hopefully return to normal in the sense that the average person on an average wage can actually afford to buy a place to live.

HPI-MEW was a great evil to visit upon this land and the sooner it poisonous shadow is removed the better.

Will I take advantage of the post-crash market and buy a house. Of course I will and so will thousands of others who have been priced out by Gordon's miracle.

______________________________________________________________________________________________________________

Could not have put it better RB. Most people will not be taking advantage of the HPC but will be buying a HOME at a realistic price,One they can aford and live at the same time.

Edited by TIMSY

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Pound to a penny says you can't goad RB enough to either apologise for cheering-on a crash, or to admit that he is just waiting to pick up the pieces after a crash (the same as Property Guru). ;)

Being honest won't that be the case for most people, once its over and house prices are increasing and everyone has forgotten about it, it will happen again and again and again...

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http://www.thisismoney.co.uk/mortgages/buy..._id=56&ct=5

But the bank rejected Hamilton's warning. 'Hypothetically he's right,' said a source close to B&B. 'But that's not what the trading statement is saying. 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.'

I wonder who exactly 'we' are in this instance? Anyway, this isn't grounds for 'rejecting' Hamilton's warning.

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My interest in seeing Great Crash 2 become a great success is really two fold:

1. I am effectively priced out of owning a reasonable house for now and into retirement.

2. I see HP-INFLATION as a form of economic disease that should have been prevented through prudent lending standards and a central bank with a remit to control inflation--in whatever form or asset class it may appear.

When the economists look back at the miracle economy and why a great bust followed the great boom they will blame it all on greed and political mismanagement. I will not be sorry to see the HPI-MEW monster die and for life to hopefully return to normal in the sense that the average person on an average wage can actually afford to buy a place to live.

HPI-MEW was a great evil to visit upon this land and the sooner it poisonous shadow is removed the better.

Will I take advantage of the post-crash market and buy a house. Of course I will and so will thousands of others who have been priced out by Gordon's miracle.

BTW, B&B are getting hammered by the "experts" today:

http://uk.biz.yahoo.com/22062007/214/frida...ovo-keller.html

Friday June 22, 08:30 AM
Friday tips round-up: Bradford & Bingley, Renovo, Keller
LONDON (ShareCast) - Although B&B is well managed and, trading at less than 10 times this year's forecast earnings, is not expensive,
now is not the ideal time to be jumping into this sector
.
A yield of about 5% and the likelihood of a further release of capital later this year, may be enough to keep existing shareholders interested. But for new investors,
there will be better times to buy
. Hold.
The prospect of further rate rises and uncertainty on
how novice landlords will behave under strain are a powerful argument for taking profits
adds the Times.

Bottom line: if you are in BTL--get out! NOW!!!

Good answer there RB to that fence sitting twerp nohpc , a fair property for a fair price is what most want .

Edited by grey shark

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gutted - knew I shoulda cashed in my windfall shares :(

But hey these things are always cyclical (well according to some ;)) so i can cash out next time :)!

In the meantime I'll keep banking the dividend cheques!

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gutted - knew I shoulda cashed in my windfall shares :(

But hey these things are always cyclical (well according to some ;)) so i can cash out next time :)!

In the meantime I'll keep banking the dividend cheques!

You knew you shoulda sold but you didn't. Hmmm. I wonder if that could be applicable to any other market. :P

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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