Who’d have ever seen this one coming
Central planning, what can possibly go wrong?
Could it be any worse than a flock of unguided “developers” building the same housing requirement* many times over out in the sticks!
*A local plan forecasts a housing requirement of 150 houses and six developers each build 200 houses hoping to cash in, that worked out well didn’t it.
Well when you put it like that… Why is in this country we are always looking to the least worse choice?
Irish Independent: Nama to free land for housing - even if it makes a loss
Mad, isn’t it? And I agree with dolanbaker, this is less bad than leaving it to our wonderful private sector…
Anyone know whether all the developers’ loans referred to here are fully performing?
If they are not then should the developers be controlling the assets?
If they are then they are presumably being facilitated in hoarding land by both low interest rates and a lack of land or site value taxes.
“The choice is to wait for the lands to appreciate so the full costs are recoverable. Nama could take a commercial hit to facilitate development.”
The proposal comes after a senior Nama figure told a housing conference, organised by the National Economic and Social Council, that debt write-downs would have to be considered to free up land banks.
Portfolio manager Felix McKenna said there was a “real structural conundrum” regarding lowering land costs, “because a lot of the land remains heavily indebted”.
“Those developers cannot be motivated to consume that land unless they repay the debt attached to it,” he said.
"The natural inclination is to hold back until they are in a position to clear their personal indebtedness. The upshot is that there has to be some recognition of a debt write-off.
“In a Nama context, that liability falls straight back on to the taxpayer and it’s not that much different for the banks. How can land be brought forward if the return to the developer does not cover the debt?”
If I recall correctly, virtually none of the NAMA developer loans are what would normally be considered to be performing loans. NAMA should therefore enforce its interest in the security underpinning the loans, thereby taking possession of the properties itself. The quotes in the article really hammer home how cosseted the NAMA clients really are. They were fully insulated from the crash by effectively retaining control over their assets while they appreciated in value, at the same time as getting generous taxpayer subsidized EUR200k per annum salaries. Clearly the business model was to keep properties off the market, squeeze supply to force prices up and protect the interests of its debtors
My initial reaction to this is that it’s good news - the state surely has a role in providing houses in the current situation (developers unwilling/unable to deliver at current prices, depending on who you believe). Curious that the reaction here is so negative. I thought I remembered people on here decrying NAMA’s unwillingness to help contribute to solving the housing shortage?
The existing system in incapable of solving the problem since the problem is still with us, i.e. the unreformed treason.
What is NAMA? What’s it been doing? How has it affected our lives? Who has gained? Who has lost? What went in there and what’s come out. We only know the tip of the sticking frozen turd, and this , this is vigorous political polishing.
The whole thing, the entire entity should FOI’d until there is nothing left to know. It’s not a thing of good. It’s been a institutional evil. Secrecy in this instance is evil. Secrecy was and is used by a small few with a lot to hide and retain advantage at the expense of greater society trying to shelter themselves through a crisis created from within.
Moderation is for the drunk. These guys aren’t drunk. They’ve always been cold calculating every inch of the the way to and from the Banks. We need to call out the bad, the pure no good evil bullshit for what it is. Things that lead to no good are known as bad.