NAMA Guaranteeing Negative Equity Portions of Home Loans


#101

And here are the actual properties! Catch em while they’re hot:

nama.ie/about-our-work/defer … nitiative/

Ed: Bloody hell. Three developments in Dublin:

  • Carrickmines Manor, Glenamuck Road, Dublin 18
  • Brown’s Barn Wood, Naas Road, Dublin 22
  • Devlin Banks, Naul Village, Co Dublin

That looks like thin, thin gruel to me.


#102

Brown’s Fu*king Barn!!! XX


#103

What’s really important to me is, will NAMA be selling these properties at :
A) Current market value
or
B) Current market value + ‘guarantee’ premium.

If they plum for the latter, then it’s *immediate *negative equity.

Also, what effect do you think this will have on your average home seller ?

It’s just like when ‘new homes’ attracted zero stamp but the average home seller was subject to it.

Once again, the favoured few enjoy privilaged selling conditions to the average Irish homeowner who (more than likely) is paying for the whole debacle to begin with.


#104

Incidentally folks, just a reminder of El Spanish Version of this.


#105

I can see 7 properties currently for sale, presumably by private sellers, at Carrickmines Manor as per MyHome map:

myhome.ie/residential/brochu … 18/1760167

Here’s a 4-bed in Brown’s Bawn asking €415,000, which I don’t know, but I suspect is in real trouble at that price given the NAMA scheme:

daft.ie/searchsale.daft?id=624556


#106

That’s gonna take a pounding !

I think this is the link for Carrickmines Larry …

myhome.ie/residential/brochure/carrickmines-manor-glenamuck-road-carrickmines-dublin-18/1618031

It was last updated 3 weeks ago, so whether it reflects NAMA prices is unknown.


#107

10% deposit agreed with the participating banks, is this legal?! What deposit do you need normally 30%, 40%, more? This I think will distort “the market” more so than the 20% after five years. Also we have still no SELLING price data so how is a valuation arrived at?!!


#108

That link lists the price as €125,000, which presumably is the starting price of 1-beds since the ad seems to cover 1, 2 and 3 beds. So that’s in effect €100,000 with -20% NE provision.

But here’s a private 1-bed for sale at €130,000:

myhome.ie/residential/brochu … 18/1760167

My understanding is that it is essentially impossible that anyone would bid a penny above €100,000 for this private one. Right?


#109

The game is rigged.

House prices in this country are primarily a function of how much the banks are able and willing to lend out for them. This often has far less to do with the house itself than with how much the banks think the borrower (in the context of the social and environment he inhabits) is good for.

Everything else is fluff designed to conceal this fact. ie. NAMA guarantees, Establishment media campaigns, Concerted measures to restrict supply, Concerted measures to hype demand, EA collusion, So called independent valuers in bed with EA’s and other property players, Institutionalisation of so called valuers, Price databases or lack thereof, Cultural lifestyle memes propagated, the list goes on and on…

It is a rigged game. No one really called ‘halt’ when the previous funding for this game temporarily dried up. Now, the game is back on again - slightly different setup to account for new realities, but essentially the same. Whoopee.


#110

Somewhere in-between, depending upon your personal expectations as to where prices will fall to.

But one thing is for sure, the property for €130k cannot compete with a similar GuaranteedNAMA* property at €130k (whatever about €125k).

The private seller must now reduce their price further to compensate for the extra NE insurance offered by NAMA.

As I just mentioned in my post above 'Once again, the favoured few enjoy privilaged selling conditions to the average Irish homeowner who (more than likely) is paying for the whole debacle to begin with.'

It’s the law of (un ?)intended consequences.

*I copyright this name now !


#111

One further issue. Is it 20% off the current advertised price for these property or the price you would actually pay if you went into the EA with the intention of buying one of those houses.


#112

Brendan McDonagh has just said on radio that NAMA hope to eventually extend this scheme to 750 properties.


#113

Before you copyright it… tweak it!

Guaran(ama)teed!


#114

Nope. :smiley:
I want it to be a pun on the old Guaranteed Irish campaign which was used to get us out of a debt hole (as opposed to GuaranteedNama whose purpose it is to get us into one !).


#115

So is Nama selling at market prices plus 20% or market prices with a real 20% downside guarantee?

If it is Market price plus downside guarantee is this not government action to reduce the price of housing?

If this is the case why is the pin not celebrating? Real action to reduce house prices :slight_smile:

Or do people feel that the quoted prices are too high?


#116

Any thoughts on the offering? I suppose the positives are that these properties aren’t the worst (they appear to be houses, they aren’t too far from employment areas, the locations are ok, although not especially desirable). At the same time, I know that the market in areas like Douglas, Rochestown, Ballincollig and Crosshaven is at a standstill, and that prices are down at least 50% from peak. I will probably kick the tyres and see what NAMA are looking for, although I have a feeling that they’re going to be asking for more than the market rate.


#117

TV3 Headline: “NAMA’s property deal: Buy a house and don’t worry if it falls in value”.

Er, by less than 20%, that is!

Ed: In fairness, script then goes on to say: “But critics have accused the agency of trying to interfere with the property market”.


#118

Could this lead to a death spiral? NAMA offers to sell for 125K with 20% N.E. risk insurance. Private seller now has to drop to 100K to compete with NAMA. Potential buyer now looks at NAMA and sees that prices are already down 20% so the N.E. insurance that comes with their overpriced property isn’t worth anything. NAMA has to drop their price, and still offer insurance … and the spiral continues.


#119

Carrickmines Homes for 66% less

8 months later you can buy your Carrickmines Manor 2 bed apt from NAMA for €125,000.


#120

can we just change the thread title to “NAMA Guaranteeing Negative Equity”?