UK home values to plummet 50% from peak: Indo … 30910.html

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

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

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?

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

Blue Horseshoe

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 .?