Paragon now says that buyers of btl should not be classed as investors

geoffky

British buy-to-let lender Paragon are trying to disown an entire sector of amateur landlords who have fallen on hard times.
According to The Guardian, Paragon now says that investors in the kind of overpriced city-centre apartments which are now virtually unlettable and unsellable should not be classed as buy-to-let investors. "These properties were targeted by speculative purchasers who thought they could make a quick buck by flipping them. That is not the buy-to-let market. Buy-to-let investors do not own a property unless they can demonstrate that there is tenant demand".
It's an interesting solution to the housing bubble implosion – just stick your fingers in your ears and pretend it's not happening. But somehow we don't think it'll catch on

link .http://www.moneyweek.com/news-and-charts/economics/why-spains-banking-sector-could-be-facing-a-death-blow-22425.aspx

Trollfever

This bit was missed:

One – admittedly unorthodox solution – could be for the ECB to simply pretend that Spain doesn't exist. If that sounds silly, that's because it is. Yet, that hasn't prevented British buy-to-let lender Paragon from trying to disown an entire sector of amateur landlords who have fallen on hard times.

:rotfl:

fatpig_2

So it's official then. Nobody likes BTLers. Not even the mugs that lend the chancers the money to gamble with.

lynzpower

totally laughable.

Flippers are investors too! Ive met a few, and they used to hang about on this board a bit some people made some great money from flipping, and to be honest, I wish I knew then what I know now, as I might well have done it myself ( if I could) but then Id never be confident in flipping in an area I knew nothing about- and without some very hard negotiating. the problem is so many late-flippers were doing it once the market was already tipping through oversupply and lack of demand ( read they were overpriced for the area and target market wasnt big enough eg manchester)

the problem arises, when the basic common sense questions werent asked ie

"are there enough people in manchester earning enough to pay 1k per month for the amount of flats in this development alone"

Answer- probably not.

Paragon have to be taking the !!!! totally, after all, im sure on thier website they siad things like "invest in BTL today, call us now "

Treadmill

A search of 2 bed flats in Peterborough throws up 128 results on rightmove, and there are still new build flats being built. Is it possible that 128+ people will need two bed accomodation anytime soon ?... Not likely Imho

You'd be mad to think a shortage of rental property will push up rents like some of these property speculators.

I guess many towns are the same

Trollfever

they used to hang about on this board a bit

Before my time, but are they now posting on this thread?

http://www.singingpig.co.uk/forums/thread/158168.aspx

GDB2222

I was contacted by TIC. Quite frankly, I thought it was a con, and I steered well clear.

One of the companies (can't remember if it was TIC) pitched along the following lines. I should buy a property worth £100k, but they would give me a 10% discount. However, rather than pricing it at £90k, they would leave the price at £100k and give me the £10k as a sort of back-hander. I could then get a 95% or 100% mortgage based on the full £100k, and the lenders weren't to know about the back-hander. The vendors had a tame surveyor on hand to provide a valuation at £100k. Yadda yadda yadda, it was all clearly cloud cuckoo land, and anyone who fell for it must have been daft. Almost as daft as the idiots who bought little squares of farmland for £40k a shot. Are people really that financially naive?

lynzpower

Are people really that financially naive

GB, sadly the answer to this question is a resounding YES.

it has long been a soap-box topic for me that this labour governments major failiure is that they have allowed the populace to think that debt is wealth. That has undermined our whole economy, and thats what will make "this time different"

Tassotti

Trollfever wrote: »

Before my time, but are they now posting on this thread?

http://www.singingpig.co.uk/forums/thread/158168.aspx

Picked out inexperienced fools..well done

At one point, money could be made from flipping in this country.

This has long gone, but WILL return.

Rents will be more than mortgages again.....Oh...great time to buy..ohh cant...don't earn enough....history repeating itself.....

Rental yields will increase again to 15% and you will all want to buy. (some of you never will, but there you go)

History repeating itself!!!

In fact, this thread should be moved to the 'Can't afford' House Prices