Bankrupting developers doesn't mean property firesale

[cd27]

Bankrupting developers doesn't mean property firesale

it just means property gets transferred to the banks that can manage it long term or transfer to NAMA.


The media spin on this ACC thing is disgraceful, only a short time ago RTE News were spinning the minister's line that the developers would be brought to the gates of hell, now they're spinning that bankrupting the boys will lead to property fire sale....

speaks volumes about who they're trying to protect...and also, nationalisation of banks would give us an upside / ownership stake in return for all the massive equity we've pumped in....

[cyberianpan]

It doesn't mean a fire sale per se... but it will mean more realistic valuations... and some assets will be sold

I'd hold to mini-crash ...order 10% ... maybe 15% tops as a result

Also what is interesting is how long Nama intends nurturing "struggling" loans .... I've been given the impression it could be quite some time

cYp

[cactusflower]

There's no demand for land.

[feargach]

There's no demand for land.

If you were offered an acre of land in South Dublin with full planning permission for €500, would you take it?

Odds are you would.

[nuj]

ACC want one thing, and one thing only - their money back. Nama, its origins and prolonged gestation period offer a chance to do this at values they could only dream of on the open market. They know, or hope, that their threat of a fire sale (which ex-Nama would occur) due to their legal actions will trigger a payoff much higher than could otherwise be expected. Can't believe they're too fussed about the source of the payoff money - taxpayers, developers, or bank share or bond holders.

[DCon]

If you were offered an acre of land in South Dublin with full planning permission for €500, would you take it?

Odds are you would.

But none of the loans that NAMA is acquiring on our behalf are of the EUR 500 per acre variety.

NAMA getting the useless land banks might mean the developers just walk away from the loan, with all their cash stashed safely offshore waiting for the next bubble.

[SamVimesBoots]

It doesn't mean a fire sale per se... but it will mean more realistic valuations... and some assets will be sold

I'd hold to mini-crash ...order 10% ... maybe 15% tops as a result

Also what is interesting is how long Nama intends nurturing "struggling" loans .... I've been given the impression it could be quite some time

Considering you believe the bottom for property will be as early as next April I think your opinion can be safely discounted.

No offence, but you're as obsessed with property and making a quick buck from property and believing property is always a good long-term bet as all the other braindead morons that have run this country into the ground.

Cael has a very good point that none of you want to address: when an Irishman makes some noney, what does he do with it? Does he invest it in the infrastructure and facilities of his local town? Does he plough it back into a series of Irish SMEs and startups, knowing that of every 3 two will fail but the third will evolve into a long-term viable business? Does he put it back into the community to improve the long-term capabilities of the nation?

Does he f***.

He buys more f***ing land and property, in the sure-fire belief that the entire State, all its workings and all its policies, are geared towards making sure land and property increase in value.

At this stage this country has been run into the ground by a long list of insane deluded inbred moronic Bull McCabes. As I say, Cael has a very good point, and come the Revolution we should just shoot anyone who invested in land over the last 40 years, just to make an example to future generations that this kind of drooling inbred culchie peasant bolloxology is no way to build a nation.

[Digout]

It doesn't mean a fire sale per se... but it will mean more realistic valuations... and some assets will be sold

I'd hold to mini-crash ...order 10% ... maybe 15% tops as a result

Also what is interesting is how long Nama intends nurturing "struggling" loans .... I've been given the impression it could be quite some time

cYp

I did not see if you posted elsewhere, what did your banking insiders make of the RaboBank action?

[feargach]

My point is there is still demand for land. At a very different price point, true, but there is demand.

[fiannafailure]

Slightly off topic, maybe.
I was at an auction last week in Naas, where I was shocked at the destruction of capital operated by the banks, at that auction alone the banks wrote off a few million, I do not have confidence in their ability to manage property after that experience.