Daft: Rents at lowest level in ten years

[robert151410]

And I gave you some red. You were clearly looking for it.

You really are a great lad. A dead thread brought back to life by your grovelling obsequiousness.

[MookieBaylock]

You really are a great lad. A dead thread brought back to life by your grovelling obsequiousness.

Thanks - and that's a fierce big word at the end.

[H.R. Haldeman]

Robert, stop being such a jackass. A ninja bump is totally standard on a message board, and I missed this thread originally so it's good to catch up with it. Also, with all these trolls on the site, why the need for normal posters to troll each other? Come on.

Indeed

You point to an interesting issue there: Nama is so big that it may completely distort the market

The trade off between the over supply & Nama intervention will be interesting to watch

What it definitely seems to promise is a swingeing loss of value for "poor quality" residential units

Quality being a factor of residence size, build quality, locale and location

Location will be the critical determinant here, thus some of the shoddy dormitory things around Dublin will lose ALL their value , The Lucan Legoplex will take an awful hit unless transport improves , certain rural estates will end up empty

Nama will actually end up accentuating this process... and the Nama business plan quite explicitly refers to a "Plan B" ... without saying what it is.

Much about Nama may change..

Which is why watching rental yields and supply proves so important

cYp

I keep hearing that NAMA will put a floor under rental prices, but I can't see how that will be the case.

After all, the NAMA properties (or, at least, the properties behind the NAMA loans) are sitting on the sidelines waiting to enter the market. If this stuff were to hit the market, it'd be a tsunami. So either they don't enter the market and the market just keeps falling as it is now to reflect current over-supply, falling population and falling incomes, or, they do enter the market and over-supply goes through the roof. Where's the NAMA support?

One of the arguments made to suggest NAMA will support rent prices is that NAMA can control the supply and "artificially" keep property from the market. But blah, that seems more a theoretical than practical matter . After all, current levels of over-supply won't be eaten up for perhaps a decade. By that time, many of the NAMA properties will be uninhabitable. I suppose the land banks can be held back, but there is so much time between now and the point at which withheld landbanks make a difference that it may be moot.