Lenders that Accept Bad Credit

Leave the buy-to-let! Are here two 5% dividends shares I would buy instead

Build-to-let investments are often charged as the way to pension wealth for "normal" Britons. However, I have known much of the buy-to-let landlords out there who have been losing money, ending up in control disputes or suffering repetitive damages to their belongings. Buy to let? buy-to-let investments are often charged as the way to wealth for " normal " British retirees.

However, I have known much of the buy-to-let landlords out there who have been losing money, ending up in control disputes or suffering repetitive damages to their belongings. Buy to let? guarantee a win. A way to make cash with buy-to-lease ownership is to make available mortgage loans to lessors. The Paragon Banking Group (LSE: PAG) is a specialized buy-to-lease financier with more than 20 years of banking expertise.

The value of new landlord mortgages increased by 6.8% to £1,495.5 million during the year ended 30 September. The rise contributed to a 25 percent rise in the Group's underlying pre-tax earnings. Paragon's physical capital yield, an important indicator of lenders' viability, increased from 13 to 13. Buy-to-let lessors are expected to continue to show great interest.

This may be due to the fact that stricter state regulations on granting loans to lessors have led some smaller lenders to leave this area. Paragon's primary concern is what he terms "professional landlords". "Usually these are borrower with more than three mortgage-backed rented objects or those that rent homes with more than one occupancy.

To me, as a prospective investors, this seems more appealing than placing my hope in a sole leased object. Currently, the equities are only traded at 1 times their material net asset value of 359p per stock. All in all, these stocks look good for me. A lot of new buildings are selling to lessors.

Though you can directly reinvest in building owners, one way to diversify your commitment is to buy stakes in a tile manufacturer. Our stake in this company has dropped by almost 30% this year, but I think this sale could have gone too far. Unfortunately, due to furnace issues, these plants have to be reconstructed before operation can be resumed.

That means that this year's EBIT will be 2m-£3m lower than foreseen. Brokers' projections assume that this year' result will increase by 4% to 25p per stock. On the date of publication, Forterra stock was traded at 218p. There is no Roland Head holding any positions in any of these stocks.

Motley Fool UK has no holding in any of these stocks.