New NAMA plan makes fire sales more likely

independent.ie/business/irish/new-nama-plan-makes-fire-sales-more-likely-2250328.html

Scary question, who’s going to lend the money for all these asset purchases?

I think I know the answer.

:blush:

Well actually the answer is obvious - foreign banks.
We have to price our property low enough to encourage foreigners to buy.

Commercial property has already done this, hence we have a german fund buying up some of AIBs branch portfolio.
I think their Grafton Street branch sold for c6% yield.
Ahhh remember the old 1% days XD … the memories.

Nah, it won’t be the furriners. The ‘new’ lending that the banks are going to be doing to ‘new’ businesses will be their NAMA money recycled to the same old codgers for the same old dross on the inner rim of the toilet bowl. The banks will be able to claim that they are “open for business”, but really, little new will be happening.

The “good” Anglo?

The only reason you would buy property in Ireland now is if you believed the Recession is over. A foreign bank will see that GDP is going up while GNP is going down, think something is amiss and walk away. The Irish banks have no other option but to try to reinflate the bubble and hope that a worldwide recovery comes along in time to save them.

Just thinking outside the box here… is there anychance we could flog some more buildings to the Germans getting the banks to sign up to what ever leases are required. N then just transfer the “good bits” to AIB Nua, BOI nua etc and leave the old bits go to the wall.
Leaving the germans high n dry?

Or have we guaranteed them too?

I mean the real answer.

Belive me (if you can); people from this country WILL buy fire sales. What do you think €22 billion have gone.
Have they vanished out of air. NO they lent to Irish people. There are people out in Ireland with very big pockets
waiting for fire sales. Thats how rich become richer every time recession hits in.

6% yield based on bubble rent? No thanks.

Shur haven’t we the highest commercial property yields in Europe (according to Lenny) :angry:

A bit confusing on the Indo today. There are actually 2 articles by Oliver that are weirdly similar - the first below is the subject of this thread, the second the subject of thread locked earlier today on the Pin, closed due to mistaken identity I suspect. Anyway, the articles are so overlapping they are probably best in the same thread:

New NAMA plan makes fire sales more likely
independent.ie/business/iris … 50328.html

NAMA is now the biggest danger to property prices
independent.ie/opinion/analy … 50388.html

Ooops, sorry Arbitrageur…

Of course they will and get mugged again.

The whole problem, let us remember, is that these houses are not needed. They’re surplus.
Unless 300k empties are filled by an influx of roughly 1m people (3 per dwelling) what use are they?
And if they were filled by the magic million immigrants what would that would do to the health system or roads or wage levels?

No matter what way you slice it, its a fucking disaster of epic proportions.

It’s worse than that…

We created a situation where with the lowest population density in the EU, we have the least square meterage of residential space per capita…

There’s fucking it up and then there’s Ireland.

Shame on you you unpatriotic sod of turf, I bet you did your Christmas shopping in the north aswell XX

Hey, why not just flog them the north? Sure aren’t the ruled by a german anyway so should be a smooth transition…
:slight_smile:

Well if it is going to be the domestic banks lending for the new purchasers why not just write the debt down to a realistic level and save everyone time and costs

Because then the taxpayer wouldn’t stump up for it if the banks could do it all themselves.

With NAMA we get to lose three ways:

  1. Overpaying for the loans
  2. Recapitalising the banks with money we’ll never see a return on
  3. Making a loss on NAMA

Meanwhile, the great and the good who owe all this money get their debts written down/off by NAMA. Since it is not a public company with shareholders etc. it doesn’t have to bankrupt them so they essentially get off scott-free at the expense of the taxpayer.

Heads I win, tails I take my silver top cane and beat you to a pulp with it while you yell “thank you sir, more please, may I vote you in again?”