Judge Refuses to allow sale of Carroll Company's Property

[John Kalahan]

Mr. Justice Peter Kelly refused to allow sale of Carroll company assets citing the "wretched" state of the market

RTÉ News: Receiver appointed to four Carroll firms


This will allow AIB to take charge of the Carroll properties and rent them out.

What happens if the trend in the value of these properties declines substantially lower.


More rental properties must lead to lower rents.

Lower rents must mean lower property prices.

The property market is merely a reflection of the collective expectation regarding property prices.

The market has a mind of its own, and will eventually follow its own course which is not necessarily upwards.

The State subsidised AIB will now be competing with non subsidised Landlords. I wonder if any one will cry foul of competition law?

[dunno]

Not great, but what can a person do? Rents are miserable.

[John Kalahan]

Not great, but what can a person do? Rents are miserable.

Become a Bear and Sell, sell, sell.

Prices might become a lot more "wretched" or more attractive depending on your point of view. Every sale must involve a buyer.

If EU interest rates rise.

If Banks margins are to improve to restore their profitability

If the lenders to the banks are to receive a suitable margin to cover their perceived risk in doing so.

If Taxes both direct and indirect are to increase.

If Public sector pays is cut further.

If people are to put away more for their retirement.

If supply increases yet further

If unemployment remains high

If emigrations is significant

Yes lots of room for property prices to get a lot more "Wretched"

[politicaldonations]

Does this judge or his family have any property interests? He seems to think he knows better than the market and can forseee the future of the market. He is overstepping his powers IMO

[John Kalahan]

I am sure that many are hoping to minimise the losses the bill the taxpayer will pay.

However we will be paying 5% or maybe more on the money we use to prop up the banks,

Hard to see the net yields returned on the property to be rented out amounting to much more then 1.5% after management costs calculated as a return on the sum borrowed as opposed to calculated on the property value.

If there is to be any significant fall in price / value the taxpayer will get burned eventually

Could a homeowner/ borrower facing eviction by one of the banks not ask The Court to allow a bank possession and deny a sale having regard to the "Wretched" state of the market

[wombat]

More rental properties must lead to lower rents.

You would think this is what would happen but with the govt. subsidising the banks with our cash and NAMA protecting the Developers, neither group need to drop rents, they can sit on empty properties until hell freezes.

[cyberianpan]

Peter Kelly was previously praised on these forums when he started sending Zoe towards receivership

But now , just because he too believes in long term economic value... people are attacking his integrirty

cYp

[John Kalahan]

Peter Kelly was previously praised on these forums when he started sending Zoe towards receivership

But now , just because he too believes in long term economic value... people are attacking his integrity

cYp

I believe Mr Justice Kelly to be of the highest integrity.

It seems a view was taken not to send all these properties to the market at once. There is nothing to stop subsequent applications to send some of them tot he market.


If the price pf property is allowed, or made to fall significantly more then the Banks will find it even more difficult to borrow money as will the State.


We are dealing with two three property values:

1) The original purchase price/value

2) The admitted property value (Banks best bad ideal in a propped up market)

3) The current value based on what you could actually get for it if you sold it

Ultimately the widow dressing operations based on 2 above will not influence 3 above.

Its all about delaying the announcement of the bankruptcy of the State

[Cassandra Syndrome]

Peter Kelly was previously praised on these forums when he started sending Zoe towards receivership

But now , just because he too believes in long term economic value... people are attacking his integrirty

cYp

Excuse me, what is the definition of a long term economic value?

Its just that having studied economics I never came across that term before. And I consulted the Oxford Dictionary of Economics and it didn't show up.

The Oxford Dictionary of Economics - L

Thanking you in advance. (economically valued)

[cyberianpan]

Excuse me, what is the definition of a long term economic value?

Its just that having studied economics I never came across that term before. And I consulted the Oxford Dictionary of Economics and it didn't show up.

The Oxford Dictionary of Economics - L

Thanking you in advance. (economically valued)

The strict phrase comes from the EC

Here's some material on it:
The Irish Economy Blog Archive Long-Term Economic Value
The Irish Economy Blog Archive The Macroeconomics of Long-Term Economic Value


cYp