Weirview Nama auction

delaney001

Hi, just wondering did anyone hear anything about Nama auctioning off 40 houses/apartments in the weirview estate. Think I heard one company is buying the lot and putting them on a long term contract to the council. Council are planning on using them for social housing. Anyone hear anything about this? Is it going ahead or is there a time scale planned?

toe_knee

Haven't heard anything about it but anyone who can tell the future like that should do the lotto. They don't get a whole lot from the council for rent and there is no guarantee that the council would even take them so that wouldn't make sense. There is a massive shortage of rental accommodation in Kilkenny so I am sure they would make WAY more money privately.

delaney001

toe_knee wrote: »

Haven't heard anything about it but anyone who can tell the future like that should do the lotto. They don't get a whole lot from the council for rent and there is no guarantee that the council would even take them so that wouldn't make sense. There is a massive shortage of rental accommodation in Kilkenny so I am sure they would make WAY more money privately.

Ya I know, with the current demand you'd imagine they are very valuable properties. But I don't think that's the way Nama view things, I think they are more so viewing it as, mortgage was €x. Now they can block sell the 40 for €X+10%. Think they just want properties off their books with a profit.

Anyway this is nothing got to do with seeing the future. think the residents of weirview had a meeting over it last week, must have been made public knowledge to them at some stage.

Just interested to know if anyone here has heard anything.

toe_knee

I wasn't talking about Nama, I was talking about a private company buying them. The private company would want the most return for there money so would more than likely prefer to rent them privately.
It would make sense for Nama to sell them all in one go buy it doesn't make sense that a company would buy them and then rent them to the council at such a reduced rate.

toe_knee

Saying that when does anything make sense anymore

hi5

I go past the empty apartments in Robertshill regularly, I see the top ones now have some of their windows smashed.
Its shocking that accommodation like that is left empty so that artificially high prices can be maintained.
That's a bigger and more sinister injustice than water rates yet nobody seems bothered.

delaney001

toe_knee wrote: »

I wasn't talking about Nama, I was talking about a private company buying them. The private company would want the most return for there money so would more than likely prefer to rent them privately.
It would make sense for Nama to sell them all in one go buy it doesn't make sense that a company would buy them and then rent them to the council at such a reduced rate.

Oh ya from that point of view it seems v strange. Anyway, was just curious to know did anyone else hear anything about it.

Kirk Van Houten

toe_knee wrote: »

I wasn't talking about Nama, I was talking about a private company buying them. The private company would want the most return for there money so would more than likely prefer to rent them privately.
It would make sense for Nama to sell them all in one go buy it doesn't make sense that a company would buy them and then rent them to the council at such a reduced rate.

Depends on the deal the private company has with the council. A deal with the council could have a clause that regardless of occupancy the company gets paid. As such its guaranteed income something that can't really get in the private sector. Its also something that is more likely to get through the commerical bank loan process rather than the risk of private rental.

As long as the guaranteed income pays the bank loans and possibly upkeep (depending on who assumes responsibility) then the houses are being paid off and at the end of the deal with the council the company is sitting on a large number of houses with loans either paid off or reduced from the original amount.

Kirk Van Houten

hi5 wrote: »

I go past the empty apartments in Robertshill regularly, I see the top ones now have some of their windows smashed.
Its shocking that accommodation like that is left empty so that artificially high prices can be maintained.
That's a bigger and more sinister injustice than water rates yet nobody seems bothered.

Would you like all NAMA vacant property to put on sale?

Two small things with that solution
- it means that the market would be flooded with properties - lowering the general prices, pushing more people into negative equity etc
- it means NAMA wouldn't make potentially as much profit as the market is now showing some signs of recovery. The less profit NAMA makes the more the tax payer has to cover to make up the shortfall.

hi5

Kirk Van Houten wrote: »

Would you like all NAMA vacant property to put on sale?

Two small things with that solution
- it means that the market would be flooded with properties - lowering the general prices, pushing more people into negative equity etc
- it means NAMA wouldn't make potentially as much profit as the market is now showing some signs of recovery. The less profit NAMA makes the more the tax payer has to cover to make up the shortfall.

That's exactly what I would like to see, low prices are good, it means everyone gets a chance to buy. I couldn't care less about those in negative equity and don't see why the country should be held hostage because of their mistakes.
The next generation of buyers matter too, its not all about protecting those who balls'd up the first time round.

And people can't afford any more taxes, so NAMA can whistle for it.

Kirk Van Houten

hi5 wrote: »

That's exactly what I would like to see, low prices are good, it means everyone gets a chance to buy. I couldn't care less about those in negative equity and don't see why the country should be held hostage because of their mistakes.
The next generation of buyers matter too, its not all about protecting those who balls'd up the first time round.

And people can't afford any more taxes, so NAMA can whistle for it.

your economic reasoning is flawed. I'm not pretending to be an expert on this but low prices doesn't mean everyone gets a chance to buy. Negative equity means that people can't afford to move and the only people who can buy are those with cash, low or no mortgage or those desperate and lucky enough to get a loan from a bank that will take the negative equity into account.

Roughly about 40%-50% of all homes in Ireland have a mortgage attached. As of late 2013 the estimate was that roughly up to 40% of those loans were in negative equity. Even allowing for the subsequent drop and rise in price you are still looking at up to 1 in every 5 homes in the country being in negative equity.

Take the demographic of those most likely to have a mortgage and factor in the negative impact of household mobility and job matching and you can begin to see how this has a negative impact on the economy - potentially less consumer spending as those in negative equity pay off more of their mortgages, impact on business/industry if the workforce isn't as mobile as needed, less take in tax if captial gains are in decline from house sales and also if consumer spending is down.

I'll leave you to work it out but the whole "NAMA can whistle for it" leads me to believe you really have no grasp of the situation at all.

hi5

^ The lack of mobility and the inability the move up the ladder caused by negative equity will have a far less negative effect on the economy than the economically homeless will have, not to mention the social cost.
Low property prices puts more money in peoples pockets that they can spend in other areas of the economy.
Anyone looking for high property prices now could only have a vested interest in it, in other words they bought at the wrong time and expect everyone else to pay for it.