Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Paragon Stock Soars On Claims Rents Are Soaring

Recommended Posts

http://uk.biz.yahoo.com/080716/214/i39hv.html

Paragon sees lower bad debts

| | |

LONDON (ShareCast) - Buy-to-let mortgage lender Paragon (Xetra: 555869 - news) has seen reduced arrears over the past three months, (Advertisement)
adding its loan book performance is "exemplary" with landlords benefiting from increased rents and yields.
The group said it continued to operate profitably and in line with management's expectations from 1 April to 30 June 2008. Third quarter profit before taxation was similar to the average quarterly underlying profit for the first half of the year.
The number of accounts in arrears has reduced since March, with the percentage of accounts in arrears remaining at similar levels, Paragon said. The charge for impairment remains consistent with that for the first six months and is in line with expectations.
Credit market conditions continue to constrain new lending activity, it added, with lending mostly limited to further advances to existing landlords.
Total loans to customers, at £10.4 billion, are at a similar level to a year previously.

Business doing well in the BTL sector despite the rrest of the economy going to hell in a hand basket. Good to see one bright spot eh?

PARAGON GROUP 66.00 6.25 +10.46%

Edited by Realistbear

Share this post


Link to post
Share on other sites

Seems the mortgage interest might catch som eout, Rents are not rising staying the same rate they always have of around 3% inflation per annum Edit: recently 3%, they follow long term about 5%

Rent-mortage.gif

Edited by maxwell

Share this post


Link to post
Share on other sites

If any of you commenting on this had any knowledge of the banking sector you would know that Paragon...

  • Practically pulled out of buy to let 2 years ago
  • Specialise in high yielding HMO and student properties
  • Only deal with experienced landlords
  • Only deal with experienced landlords with very high credit scores
  • Have a very low loan to value across their portfolio.

Hmmmph, very lucky that shorter. Hope more get burned big time. Paragon are no B&B.

Edited by bobby9983

Share this post


Link to post
Share on other sites
If any of you commenting on this had any knowledge of the banking sector you would know that Paragon...

Hmmmph, very lucky that shorter. Hope more get burned big time. Paragon are no B&B.

Then why have their shares fallen from £10.00 a share to next to nothing?

Edited by time 2 raise interest rates

Share this post


Link to post
Share on other sites
Then why have their shares fallen from £10.00 a share to next to nothing?

:angry: Why do you think any shares fall or rise for that matter. Speculation! Buy/Sell on the rumour, Sell/Buy on the news.

Share this post


Link to post
Share on other sites

All these repossessions are reducing stock of property - my last place has been empty for a year while it was repossessed and auctioned off.

Demand for rental property in the South East remains strong. Even if more migrants leave I don't expect it will lead to vast amount of empty property as they usually pack several people into one property.

Share this post


Link to post
Share on other sites

COuld not believe this when I saw the forum topic then I had a little think.

Engage the shorting of Paragon.

Share this post


Link to post
Share on other sites

Dead Cat Bounce

Rental income is linked to house prices. People aren't going to pay massive rents if a mortgage for an equivalent property becomes significantly cheaper. (which in due course it will!)

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable

So, they've gone up 10p, having dropped from about £70?

This must be why my rent has doubled in the last 3 hours then?

:lol::lol::lol:

******ed.

Share this post


Link to post
Share on other sites
If any of you commenting on this had any knowledge of the banking sector you would know that Paragon...
  • Practically pulled out of buy to let 2 years ago

  • Specialise in high yielding HMO and student properties

  • Only deal with experienced landlords

  • Only deal with experienced landlords with very high credit scores

  • Have a very low loan to value across their portfolio.

Hmmmph, very lucky that shorter. Hope more get burned big time. Paragon are no B&B.

I thought they were very proud of BTL lending in September 2007,

Year ending 2007

34.3% increase in buy-to-let loan advances to £4,079.3 million

39.1% increase in buy-to-let portfolio £10,031.3 million

http://www.paragon-group.co.uk

Share this post


Link to post
Share on other sites
Dead Cat Bounce

Rental income is linked to house prices. People aren't going to pay massive rents if a mortgage for an equivalent property becomes significantly cheaper. (which in due course it will!)

Yawn, except all those numpties who were paying huge amounts on their massively MEW'd mortgages get repossessed then find a really nice property for half the price each month.

Even though the rent is high in rental terms, they still bite the landlords hand off because of the stampede of other dispossessed numpties.

Share this post


Link to post
Share on other sites
Dead Cat Bounce

Rental income is linked to house prices. People aren't going to pay massive rents if a mortgage for an equivalent property becomes significantly cheaper. (which in due course it will!)

It's a no brainer, should i rent for a few pounds a month more or buy when house prices are falling by

£25,000 per year. they are all ready down £20,000 in ten months.

Edited by time 2 raise interest rates

Share this post


Link to post
Share on other sites
I thought they were very proud of BTL lending in September 2007,

Year ending 2007

34.3% increase in buy-to-let loan advances to £4,079.3 million

39.1% increase in buy-to-let portfolio £10,031.3 million

http://www.paragon-group.co.uk

That was mainly to existing customers. Experienced landlords.

You need to start making a distinction between amateur and professional landlords.

Amateurs bought overinflated new build.

Professionals buy HMO's with over 10% yield.

Paragon's loan book largely consist of the latter.

You have to have at least 3 properties / 3 years of experience to get a mortgage with Paragon.

Share this post


Link to post
Share on other sites
Guest sillybear2
:angry: Why do you think any shares fall or rise for that matter. Speculation! Buy/Sell on the rumour, Sell/Buy on the news.

Fudamentals, dear boy.

Share this post


Link to post
Share on other sites
That was mainly to existing customers. Experienced landlords.

You need to start making a distinction between amateur and professional landlords.

Amateurs bought overinflated new build.

Professionals buy HMO's with over 10% yield.

Paragon's loan book largely consist of the latter.

How do you know this or quantify Experienced ?,

what about the increase in BTl lending contradicting your first post.

Share this post


Link to post
Share on other sites

If rents rise 10% and you're paying £1000 per month that puts your rent up to £1.100 per month

or £1,200 a year.

If house prices fall £25,000 per year and your rent rises £1,200 you will be up £23,800 renting, let

me think about it for a minute.

Edited by time 2 raise interest rates

Share this post


Link to post
Share on other sites
That was mainly to existing customers. Experienced landlords.

You need to start making a distinction between amateur and professional landlords.

Amateurs bought overinflated new build.

Professionals buy HMO's with over 10% yield.

Paragon's loan book largely consist of the latter.

You have to have at least 3 properties / 3 years of experience to get a mortgage with Paragon.

Do you have any evidence for these claims you are making?

I know plenty of muppet landlords who are in trouble and most have paragon mortgages.

Worse, paragon, unlike B&b are 100% reliant on money markets for funding and selling on of securities. Oh and the ONS figures released this week state that rent inflation is less than both CPI and RPI.

Share this post


Link to post
Share on other sites
Guest sillybear2
In a sane world yes.

Paragon are sitting on lots of very dodgy collateral, their landlords have very little skin the game or emotional attachment to their properties. Speculation alone doesn't explain £10 > 50p.

Share this post


Link to post
Share on other sites
I was shorting Paragon during most of 2007. Very successful trade, fully compensating for my disastrous investment in uranium! Ho hum.

You probably didn't reach the "critical mass" required for the uranium investment to work.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.