Paragon Banking Share Discussion Threads

[bigbigdave] 11/11/2012 08:02

Investors pile into buy-to-let

Rents are expected to soar 18% over five years
INVESTORS could secure an annual 8% return over the next five years by putting their cash into buy-to-let property, according to new figures.

Rents will rise 18% over the next five years across the country and 26% in London, fuelled by demand from young workers unable to get on the property ladder, said Savills, the estate agent.

It remains cautious about house prices, warning of a 2% fall nationwide this year and a rise of only 11.5% by 2017 - a 3% fall in real terms when adjusted for inflation. For London, the prediction is a 21% rise by 2017, or 6% in real terms.

However, the sharp rise in rents promises impressive total returns for investors, which take into account both yield and capital growth. Savills has calculated that landlords could secure average annual total returns of 6.4% over the next five years, or 33% by 2017. In London, total returns could hit 7.8% a year, or 40.3% over five years.

Net yields, which take into account management fees, repairs, insurance and vacant periods, are 4.1% across the country and 3.8% in London, Savills said.

Lucian Cook, director of residential research at Savills, said: "Constraints on the ability of young households to get competitive mortgage finance underpin our strong rental forecasts in the next five years. Despite relatively low house-price growth forecasts, the strength of this income stream makes buy-to-let an attractive investment."

More than one in eight mortgages is now a "landlord loan" - the highest on record, the Council of Mortgage Lenders revealed last week. Loans worth £4.2bn were approved in the third quarter, up 8% on the same period last year and the largest amount since the credit crunch. In the first nine months of the year, buy-to-let lending totalled £11.8bn, up 18% year-on-year.

New mortgage deals are also making it easier to enter the market. There are 527 buy-to-let loans on the market, more than double the number three years ago and up from 467 six months ago, according to Moneyfacts, the data firm. Several lenders, including Paragon, Kensington and Accord, added more deals last week.

However, Patrick Connolly, of AWD Chase de Vere, the financial adviser, said: "Investors attracted by the promise of high returns should consider all the costs and risks involved."

[cockneyrebel] 05/11/2012 10:55

Up nicel on that news today and the results date confirmation:-)

Ta kena.

CR

[kena] 31/10/2012 11:46

Good call CR

[cockneyrebel] 31/10/2012 11:42

Blackrock over 15%.

CR

[sat69] 30/10/2012 20:31

FY results on 20 Nov.

[cockneyrebel] 30/10/2012 14:22

breakin gthrough the previous high, results in a fortnight.

[future financier] 30/10/2012 10:05

Fair point TD - all of us that have followed PAG for more than 12 months!

[the drewster] 23/10/2012 08:55

Only some of us FF?

[future financier] 22/10/2012 16:55

I am sure that the current surge already fully reflects the results that will become public in a months time! Some of us have grown cynical about the movements in share price here!

[cockneyrebel] 22/10/2012 15:30

With results mid Nov ?
I reckon any small dip will be met with strong buying imo.

CR

[the drewster] 22/10/2012 10:05

Pre 2008 charts miss the emergency fundraising and consolidation, so isn't this theoretically now blue-sky?

Given the very strong rise since the summer, I wouldn't be even slightly surprised to see some profit taking here without news.

[cockneyrebel] 22/10/2012 08:21

275p next chart resistance.

CR

[cockneyrebel] 22/10/2012 08:07

Rental market in ;ondon strong according to TEF today

CR

[the drewster] 20/10/2012 16:56

Yes. Held and traded.

[yupawiese2010] 19/10/2012 20:48

Drew

Out of interest have you ever held here ?

[the drewster] 19/10/2012 15:55

This rise almost matches the longest in the history back in 2009, though as yet it lacks the same absolute, or percentage increase (40 to 180).

That was followed by a fairly rapid retrace to 120 from the actual results announcement so you could be right, but if you are playing, then do tread carefully.

[cockneyrebel] 19/10/2012 15:50

Strong to the results next month I suspect.

CR

[cockneyrebel] 19/10/2012 15:48

240p gone

CR

[the drewster] 19/10/2012 14:10

... and another assault on 240 ... can it break through?

[future financier] 18/10/2012 16:37

I refer you to my post 1908 about prospects for the share price. I think that this current surge is based on the terms of the most recent securitisation. Agree with TD that a drop back (?to 190p) is to be expected soon.

[the drewster] 18/10/2012 13:40

two failed attempts to break 240p intraday

[cockneyrebel] 16/10/2012 08:11

In demand at the open

CR

[cockneyrebel] 15/10/2012 13:03

Picking up pace - what a chart.

250p looks nailerd on before long imo.

CR

[the drewster] 12/10/2012 11:55

Been incredibly leaky in the past with selling on the day (so presumably everyone taking positions leading up to)

Needs to hold this rise, but certainly does look to have broken out. Closing above 217 is key, then it's a case of finding the new resistance level (short term at least)

I would not be in the slightest bit surprised to see a significant drop after results are announced in keeping with previous years.