So far the main focus of NAMA has been what impact it will have on the banks. But probably the greatest impact will be the change it will have is on the Property Market. So are the possible outcomes of NAMA?
The Government takes on developer loans; Irish banks get cash and start … lending money to house buyers, who get 90% mortgages and buy house(s). A new property boom starts and in five years time with back in a familiar place with X billion in bad property loans – albeit bad mortgages, rather than developer loans – but more debt none the less
Banks will have to repay international lenders and bond holders with the money they receive from the Government. With jobs losses, increased taxation and a possible NAMA levy, housing finance availability will be reduced and fewer people will be in a position to take out mortgage. Although it may be a slow road back to recovery this should help and result in stabilising the property market.
Have your Say
- Will NAMA just reflate the bubble? Or will it stabilise the property market?
- Should we support or reject NAMA?