NAMA: Breathe life back into the property market?

NAMA: Breathe life back into the property market?

NAMA: Breathe life back into the property market?Last week NAMA released an initial list of properties for sale located in England and Ireland, which are either in receivership or administration by them. The list runs to 850 properties and includes everything from pubs to farms, land, three-bed semis, hotels, apartments, some of which are entire apartment blocks, and even an airport.

On release, the list of properties sparked an unprecedented wave of interest and within a few hours more than a thousand people had downloaded the details. It was reported that NAMA’s own switchboard was inundated and its staff fielded hundreds of enquiries – before directing callers to the receivers that are handling the sales.

Not long after the publication of the list, NAMA announced the introduction of a possible deferred payment scheme, which they believe could “kick-start the residential property market” and offer would-be home-buyers protection against negative equity. Under the scheme NAMA would waive 20% of the purchase price on one of its 8,000 Irish residential properties after five years if the property were to fall further in value.

“What we are talking about is a very modest intervention with the objective of getting something moving”, said NAMA Chairman Frank Daly. “If enough people take up the offer and re-engage with the property market, then the risk of further price erosion will be significantly diminished”, added Ciarán Phelan, CEO of the Irish Brokers Association.

Have your say:

  • Can NAMA breathe life back into the property market?

 

There are 17 comments for this article
  1. Vincent Mockler at 11:50 pm

    The sale of the NAMA properties will not bring a breath of fresh air to the property market as the banks or lending any money so where are porspective buyers going to get the money, unless they have it.
    I know MAMA are going to foot the loss if someone buys and the NAMA property decreases in value, so where are the first time buyers going to get the money. Property values I believe have not bottomed out yet, I think the best advice is to hold onto your money i.e. if you have it.
    Vincent

  2. John Sherwin at 2:31 pm

    I think this too little too late. A proper people’s mortgage bank is needed, back to the original building society idea with members not banks owning them as the credit unions do

  3. Gerry at 3:52 pm

    I sold luckily because I was able to, earlier this Summer to a divorcee who had a few bob, but no easy take, a country residence in Wexford was 45% down on its value a few years ago.95% 0f properties listed in auctioneers are little under what the were a few years ago still…have people got their heads buried in the sand? It is UNREAL. NAMA is another Government Quango,another bum Association with jobs for the boys, helping other boys. What a bunch of wasters, window dressing, trying to be seen to do something and for who? Europe? What have they done for us…apart from big roads for their friends…devastated our fishing, turned farmers into dolesters by another name with all their payments and taken it back on the price of produce on the other hand. Time to rebel!

  4. Mac at 3:41 pm

    Thanks for the 10 good comments above; I agree with everything, well said!

    My best find all summer is this website collapso.net it has data on changes in asking prices going back to 2007 (great website, don’t know who’s behind it but thanks a million!). I only wish that I could get my hands on similar data going back to 1987 as our current economic situation is more akin to that depression, no doubt worse into the future. Should we be looking at 1980s prices and paying accordingly? Anybody still able to remember what houses were going for then?

    What’s a house worth? 3bed semi in a mature establised estate in an good area, I’d reckon €75,000, maybe €85,000, that is after all around £100,000 and that’s more than enough to pay for 3 walls, and one shared with a hopefully ‘good’ neighbour.

    Of course none of this second guessing would be necessary if closing prices i.e. actual selling prices were made public.

  5. Tom Mitchell at 2:29 pm

    Last March 2010.I was in touch with a real Estate person as i wanted to purchase a home in the limerick area move myself and my business
    back to semi retire.and start a very different type of business in the Limerick area where I was born and Raised.
    Looked at the housing marked again this past week and to my dismay prices have not gone down in 15.months if not more.There are many many others here in Canada who,like myself would go back but for the reasons I mentioned.Prices very High: Over priced. They are also on HOLD.Some are Canadians.
    My home is 2,150.sq ft. 9.ft 3″.high Ceiling,s
    My Basement is 2,300.sq ft with the same high Ceiling,s. Detached 1.1/2 car Garage.2-full Bathrooms.plus 3-Toilets with sinks.
    Looking at the prices in the Limerick area my home would be worth 550.000.euro. Here in My Area of Ontario same size City as Limerick I would get App
    220.000 euro. Not even sufficient to purchase a Semi
    Detached in Limerick.
    Tom Mitchell

  6. Geoff at 10:05 am

    Damien has got this absolutely correct in every department.

  7. ME PISSED OFF. at 5:53 pm

    What about the people who had bought a house just before the horrid down turn, what help are they going to get? Cant sell as they will still owe money on a property they just sold, and finding it hard to pay monthly mortgage, as let go from work. Its a no win situation for home owners and NAMA are selling houses that are more than half of what other people paid!!!!! Ha I thought I was getting a bargain when I bought mine in 2008, now its worth half, so come on NAMA help out the people who already paid over the top prices for homes!

  8. ZZ at 5:11 pm

    I agree with Paddy to stay away from buying an apartment. The only way you will ensure you don’t end up with ” asylum seekers and dead-beats on social welfare” is to buy the whole complex…..and how many people can afford that. NAMA will have a hard time selling much of the property on the list. I think the only properties that would sell would be those undeveloped (land) or those single dwellings.

    I looked at property earlier this year and still feel that many Real Estate Agents are in LA LA land as to what prices they will get. Remember these are the same Real Estate people who are trying to keep the property prices at a high even though the market has dropped. So who is going to perform the valuations of these properties when the time comes? those same Real Estate Agents in LA LA Land? think about it real hard before buying unless you have millions to throw away. I wouldn’t touch any of that NAMA property with a thousand foot pole.

    As many above have already stated; the property market still has a way to go, and I doubt it has hit its all time low yet. In fact stay tuned to 2013!!

  9. Stan at 3:54 pm

    Why do we need to breathe life back into the property market? The reason properties are not shifting at present is because they are still overpriced. When vendors become more realistic, properties will begin to sell. Simple.

    The last thing we need is an artificail stimuli by NAMA to skew the property market again.

    The most important aspect to self correction is that
    banks must rigidly adhere to lending only according to strict earnings/loan ratio criteria. This, above anything else, will ensure that nobody will pay more than they can afford and, consequently, prices will continue to be reflected by this constraint i.e. they will fall to a level that is more in tune to Irelands economic situation.

    Everybody is blaming the banks for not lending but it was the banks lending too much that got us into this mess. I do not blame them for being ultra cautious.

    Stan

  10. john at 3:35 pm

    with all the tax on property now and planned for future you would be mad to buy either as an investor or as your own home there flogging a dead horse they bought a pig in a poke and now they want to unload them on us, think again.

  11. Damien Lyle-Stirling at 3:28 pm

    Surely the last thing that is wanted is to breathe life back into the property market? After that, what next – try to push prices back up towards the unsustainable levels until the next crash comes? Prices are dropping because houses are still very much overvalued and NAMA knows that as well as we do. Ireland is a basket case. There is no money. We have huge unemployment, poor job security for those in work and banks aren’t falling over themselves to grant mortgages either. When we see a return to the days of mortgages of 3 times annual salary then house prices will have returned to a reasonable level. I agree with those who think that NAMA’s 20% deal will negatively impact on those trying to sell property right now.

  12. Baz at 3:19 pm

    The fact is that every property in Ireland has a very real ‘market value’ i.e. the price it would fetch in a fair and open auction. NAMA’s pathetic attempt to put a ‘floor’ under the price crash is nothing short of a failed attempt to stem their own losses (our own losses) which will inevitably escalate to breathtaking levels over the coming years. This despite us being told at the outset that NAMA would at worst break even but likely make a profit??? It’s becoming increasingly obvious that this was a crock sold to the Irish people to protect the banks and developers. The banks must now be delighted with the ‘haircuts’ they took, as everyday that passes proves they got away even more lightly.

  13. Kevin O’Connor at 2:53 pm

    “breathe Life back into Property Market’ probably over-states the possibilities of NAMA intervention. More likely provide a mild uplift, thought the extent of that uplift diminishes by the day as Euo-Crisis deepens, more credit agencies such as HomeLoans crash confidence as well as saved monies….
    However, all that will not eradicate the Irish appetite(neurosis?) for property, as seen in the two auctions of ‘distressed properties’ by Allsop. Expect more interest in their September auction, as in the meantime for the reasons stated above, the NAMA wheeze is unlikely to scoop up the funds…
    Kevin O’Connor

  14. Paddy loosing patience with NAMA at 2:40 pm

    If NAMA wish to shift stock they should put the property on auction without reserve and thereby sell at market value, anything else is just a ploy to get more money than the true market value, but then what else do you expect from the Irish property industry?

    NAMA are using tax payer’s money to bail out developers and in parallel are attempting increase the prices to be paid by us for one of their unwanted properties. Be very careful, buy an apartment now and you risk the remainder of the complex being filled with asylum seekers and dead-beats on social welfare……your property will be worthless (like in Moyross) and you will be paying their rent too!!

  15. brendan at 2:32 pm

    NAMA will not breath life in to the property market, what they are effectively doing is cutting an additional 20% of the value of properties. As any person buying a propoerty which is not on the NAMA list, should if they have any sense cut 20% off their offer so they have the same security as the purchasers of the NAMA properties.

  16. Damien at 2:27 pm

    It will skew the market for ordinary private sellers as they will have to drop their prices further, besides 1st time buyers is going this year or next I believe so I would imagine that this is the reason for the sales so soon in the 10 year NAMA project, also the banks are not lending, so they are looking for investors to buy really and would you buy in a downward spiral, we are no where near the bottom check the recent stock market news, trillions wiped in a couple of days….

  17. Niall at 2:23 pm

    It doesn’t make a difference. Property prices in this country are still overvalued. Its only bricks and morter at the end of the day. NAMA know the prices havnt found the bottom yet thus offering the 20% discount.

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