Nama selling prices

Idbatterim

At one time it was valued at €15m, but was placed on the market by NAMA at €3m.

thats just an extract from an independent articles on tom Mc Feeleys ex home on Ailsesbury road. Is it not a bit ridiculous for Nama to be selling at or close to the bottom? why not rent it out for a few years? Their mission statement is to minimise losses for the taxpayers, were not talking about withholding regular stock here, the only people going to benefit from these prices are they likes of the people who have been bailed out in the first place!!!

"To manage acquired loans, efficiently, effectively and expeditiously and in the best interests of the State." Its meant to maximize the return to the tax payer...

ABEasy

What makes you think we are at or close to the bottom.

Idbatterim

What makes you think we are at or close to the bottom.

what makes you think we arent if you dont mind me asking?

I dont know exactly where we are at, we can all speculate, but nobody knows for sure. No way I can see prices dropping substantially, if at all though. You think there can be another 50%+ fall? I can see whats happening in south dublin where I live though, prices have risen substantially in the past 1.5-2 years. Im not an EA or any other vested interest by the way, I rent, so Im far removed from it. You restrict the supply though and the price will inevitably rise, its simple economics. yeah 15 million is over the top, you tell me what a fair price is? this recession wont last forever, the Irish do have an obsession with homes and home ownership, I am voicing my concern as a concerned tax payer. It will be typically Irish, those that benefited most from the boom, will take a hit for a few years, buy the trophy property back for a fraction of what they would have paid for it and off we go again... This was coming from an absolute bear for years by the way! What makes me laugh so much is that people thought it would never end on the way up and they now think it will never end on the way down... Its now cool and fashionable to talk down everything, property prices, economic recovery etc etc etc, its getting old.

I can move onto rents if you like, where I wish to god I have rented in Dundrum about 2 years ago when I was moving out of the family home, I moved to Rathfarnham and Im now going to have to pay minimum E200 per month more to move to dundrum... There are FACTS!

Scortho

Rental yields on trophy houses are tiny.

While they get high yields on apartments there'd be few willing to pay the guys of 12 k a month to live in a house in crap condition on ailesbury road.
12 k per month would be what is required to get a 7ish % yield per annum.

Also there were receivers appointed to the loans. Aim of the receiver is to get the most amount of money as quick as possible. Not hang around for 5 years to get an extra million.

Idbatterim

even if it only take in a few thousand per month on rent, its the (hopeful) increase in value that will make you the money, much like people buying to let during the boom, who cares if you are topping up the mortgage if the value is increasing by thousands per months, once you get out at the right time obviously. if its worth even 25% more in 5 years, and you applied that to the entire nama housing stock, your talking bloody serious money!

Scortho

Idbatterim wrote: »

even if it only take in a few thousand per month on rent, its the (hopeful) increase in value that will make you the money, much like people buying to let during the boom, who cares if you are topping up the mortgage if the value is increasing by thousands per months, once you get out at the right time obviously. if its worth even 25% more in 5 years, and you applied that to the entire nama housing stock, your talking bloody serious money!

So was Brendan burgess's advice to buy boi shares at 4 euro!:P

You should only buy property for the yield if its an investment. It's too difficult to liquidate.
Buying because of potential future gains is madness. There is also potential future falls to be considered.
You can also use the yield to tell you when to get the hell out!

Idbatterim

You should only buy property for the yield if its an investment. It's too difficult to liquidate.
Buying because of potential future gains is madness. There is also potential future falls to be considered.
You can also use the yield to tell you when to get the hell out!

i agree its not a case of just selling up like shares etc, but we have a dysfunctional market at the moment, the boom was also dysfunctional...

ABEasy

Idbatterim wrote: »

even if it only take in a few thousand per month on rent, its the (hopeful) increase in value that will make you the money, much like people buying to let during the boom, who cares if you are topping up the mortgage if the value is increasing by thousands per months, once you get out at the right time obviously. if its worth even 25% more in 5 years, and you applied that to the entire nama housing stock, your talking bloody serious money!

Great idea, hold on to the property for 5 years to make 25% extra all the while paying for the up keep, insurance, receiver fees and interest (cos all this money is borrowed) which I believe is in the region of 5-7%.

SupaNova2

Idbatterim wrote: »

even if it only take in a few thousand per month on rent, its the (hopeful) increase in value that will make you the money, much like people buying to let during the boom, who cares if you are topping up the mortgage if the value is increasing by thousands per months, once you get out at the right time obviously. if its worth even 25% more in 5 years, and you applied that to the entire nama housing stock, your talking bloody serious money!

As said already, the best measure of house value is rental yield. Absent another bubble house prices are not going to go up thousands per month while rents stay stagnant or fall.

166man

Nama is going to be shut up shop by 2020 so we are told, there's no future there for Nama, it's there to sell of these assets as quick as possible and at the best possible price.

They don't have time to be maintaining these kind of houses and who knows the condition of that house on Ailesbury road. It could cost thousands to become habitable at a decent rental rate, might never see that money back.

Anyone paying €12k a month rate can afford to buy somewhere too.

Scortho

166man wrote: »

Nama is going to be shut up shop by 2020 so we are told, there's no future there for Nama, it's there to sell of these assets as quick as possible and at the best possible price.

They don't have time to be maintaining these kind of houses and who knows the condition of that house on Ailesbury road. It could cost thousands to become habitable at a decent rental rate, might never see that money back.

Anyone paying €12k a month rate can afford to buy somewhere too.

Needs 1 million to get it back to ailesbury road condition.

hfallada

Most trophy homes in Dublin 4 are sites really. Unless they have been built recently they are generally featureless and dont make a great home. The Irish times viewed the most expensive house sold in Ireland on Ailesbury road and it was four walls and a dodgy roof. There was nothing decent about it. I cant see their being a large demand for trophy homes for a few years. I think NAMA selling it now is the right choice

chopper6

Sell it and get what they can for it and move on..if some russian cash buyer wants to live there then it's money in NAMA's pockets....