But isn’t the issue that NAMA = The State (SPV’s notwithstanding!). If I am trying to sell an apartment in Docklands Location X, and NAMA releases a bunch of apartments on preferential mortgage terms at Docklands Location Y across the road, how is that not the State directly undercutting me/engaging in unfair competition?
Notwithstanding that though, if the scheme only applies to NAMA’s own properties then surely the effect will be negligible. In fact, it may be worse than negligible if the aim is to kickstart the morkesh - it might actually be hugely damaging.
I suppose that depends in the first instance on which piece of spin you buy: that NAMA doesn’t actually control that much property, or, that it controls a lot. If it’s the former, then in absolute terms the scheme can’t amount to any kind of game changer. And if it’s the latter, that means we’re about to see a flood of NAMA properties hitting the streets.
Then there’s the question of what kinds of properties NAMA has on its books. Presumably they don’t include more than a handful of family homes. So that entire sector of the market is out and we’re left with a new tranche of apartments coming online in a city already awash with unwanted and unsold apartments. How on earth is that going to rouse the market? Isn’t it more likely to have the opposite effect? And what on earth happens if NAMA splash big with all these apartments and NE mortgages…but nobody bites? Suddenly you have this big hullabaloo about this plan to kickstart the market that ends up a damp squib. Terrible PR that’ll be.
Also, won’t the prices of these properties be going on at “full price”? That is, selling for €200,000 headline, but with the understanding that you might only pay €160,000 down the track. But the headline is still €200,000. Not sure that will seem appealing to the already limited market of people who want an apartment.