UK home values to plummet 50% from peak: Indo

[kerrynorth]

independent.ie/business/euro … 30910.html

Wouldn’t happen if the British CIF employed Tom Parlon as their spokesperson. No sirree.

[jcsmith]

AXA REIM shows a four percentage-point gap between the 10pc yield that it considers to be an indication of a fair price and official yields of about 6pc.

“We would not go below an 11pc yield in the city today. Others might, but we won’t,” he added.

And if we were to apply that reasoning to Irish residential prices…?

[onlyone]

I was talking to my banking relationship manager two weeks ago. He told me that the bank was moving away from an asset valuation model of business and to a cash flow/ yield valuation.

He said the yield model valuation would be between 10 and 12 times earnings, EBTIDA. (ie 8.25-10% yield). I like that model!

I was kinded shocked that this was a change in value modeling. Property was the Gold standard in Irish banking for years, now its about ability to repay.

[spqr64]

I was talking to my banking relationship manager two weeks ago. He told me that the bank was moving away from an asset valuation model of business and to a cash flow/ yield valuation.

He said the yield model valuation would be between 10 and 12 times earnings, EBTIDA. (ie 8.25-10% yield). I like that model!

I was kinded shocked that this was a change in value modeling. Property was the Gold standard in Irish banking for years, now its about ability to repay.

Which bank can one ask?

[Blue_Horseshoe]

Ulster Bank saying 40% will be wiped off property in the North by the end of 2009!

4ni.co.uk/northern_ireland_news.asp?id=85175

Blue Horseshoe

[Eirmail]

I was talking to my banking relationship manager two weeks ago. He told me that the bank was moving away from an asset valuation model of business and to a cash flow/ yield valuation.

He said the yield model valuation would be between 10 and 12 times earnings, EBTIDA. (ie 8.25-10% yield). I like that model!

I was kinded shocked that this was a change in value modeling. Property was the Gold standard in Irish banking for years, now its about ability to repay.

I would have asked them why they don’t modify their model to take into consideration falling rents , or would that be too difficult for them .?