Developer Loans - some might find this interesting

I received a memo from my solitors last week where they explained in detail the proposed interest free loans by Grehan and McNamara. Some details explained that may not have reached the public domain and clearly highlights the insanity of it all - they firm (won’t name them for obvious reasons) were clearly against the idea and warning all their clients not to consider such madness…

Some details on the schemes

McNamara

McNamara is offering 30% “loans” to facilitate the purchase of apartments in the new Elm Park development. If these are paid back within 5 years, the amount payable is the 30% “loan” with no interest being charged. **If the loans are repaid beyond five years, Mr McNamara’s company will be entitled to 3% interest per annum in addition to the repayment of 30% of the value of the property, at that point in time, whether or not this exceeds the principal amount lent (the 30% “loan”). If the loans are not repaid within 8 years then Radford would be entitled to repossess the property pursuant to a second mortgage over the property. **

Grehan

Grehan is offering loans of 15% of the purchase price of homes in its Grange, Ballintyre and St Edmunds developments. These loans are to be repaid within 7 years and the amount to be repaid is 15% of the then current value of the property, determined by the average of two professional valuations, even if the value of the property has declined since purchase. There is no interest payable on these loans. Again, a failure to repay the loan within 7 years could result in repossession of the property.

Very interesting. I would love to know if any fools fell for these scams or not? Anyone heard anything? If they fail to shift units with this scam then they have reached the end of the line.

Media indicated some sales were generated but that could be VI spin

What planet are these guys living on?

You’d have more rights as a tenant under Irish law.

Thanks, I had asked for details on this here recently. The seat of the pants craziness of it comes as no surprise. Good to see your solicitors are on the ball (and not on the take).

I really pity the people who get conned by these sort of schemes

I would imagine that if peopel went for it in numbers we would have heard all about it. Default then is that it was no magic pill.

I have seen this fake truism popping up a bit.

Is this the new “fundamentals”, as in “the fundamentals are undoubtedly positive”

The fundamentals are sound they just need support