Daft Property - Irish Property News

NAMA: The €90bn gamble Sweeping powers for 'bad bank' 1,400 loans from 50 top developers THE Government last night gave its 'bad bank' sweeping powers over developers and judges as it unleashed a €90bn plan to rescue banks and kickstart the economy. But Finance Minister Brian Lenihan admitted it could take up to 30 years for the new National Asset Management Agency (NAMA) to sort out the toxic bank assets. The State will effectively become one of the biggest property owners in the world as NAMA is granted extensive powers to take over land and development projects from borrowers who are not keeping up with their repayments. Among the more controversial provisions in the proposed new legislation -- described by Fine Gael as a massive gamble -- is a radical series of rules and procedures to ward off legal attacks that could be disastrous for taxpayers. But the plans, which include limited appeals to the Supreme Court and a clampdown on injunction proceedings, have alarmed

Government to publish Nama legislation today... The Government will today publish legislation setting up the controversial National Asset Management Agency (Nama), the State’s new toxic assets agency. The €90 billion “bad bank” scheme will use Government bonds to buy property loans at a discount from banks, which will then be able to cash the bonds with the European Central Bank. The draft legislation will be published at 5pm today on the Department of Finance website, but the Government intends to amend it next month when it is debated by the Oireachtas. The complex draft laws run to 150 pages and contains more than 200 sections. Nama will operate under the aegis of the National Treasury Management Agency. Banks will have one chance to appeal the price put on their loans by Nama to “a valuations panel”, which will advise the Minister of Finance Brian Lenihan, but the final decision will be his, the Department of Finance has said. Officials expect that loans to the 50 largest property

What happens if you voluntarily surrender your home? If the sale doesn't cover the mortgage you could be in trouble... One of the unspoken legacies of this recession will be the hundreds of people left paying full-term mortgages on properties they no longer own having been forced to sell at massive losses by the threat of repossession. With the 12-month moratorium on repossessions agreed as part of the government's recapitalisation programme for the Bank of Ireland and AIB and political pressure generally, the prime lenders are reluctant to be seen opting to force people out of their homes. However, it's understood that many are opting to give customers in serious financial difficulty six months to sell their property despite the fact that they are almost certainly going to do so at a significant loss. That this option avoids the repossession process is almost irrelevant to the mortgage holder because the end result is the same – the customer is left with a potentially huge

Fiscal ruin of the Western world beckons... For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state... Events have already forced Premier Brian Cowen to carry out the harshest assault yet seen on the public services of a modern Western state. He has passed two emergency budgets to stop the deficit soaring to 15pc of GDP. They have not been enough. The expert An Bord Snip report said last week that Dublin must cut deeper, or risk a disastrous debt compound trap. A further 17,000 state jobs must go (equal to 1.25m in the US), though unemployment is already 12pc and heading for 16pc next year. Education must be cut 8pc. Scores of rural schools must close, and 6,900 teachers must go. "The attacks outlined in this report would represent an education disaster and light a short fuse on a social timebomb", said the Teachers Union of Ireland. Nobody is spared. Social welfare payments m

Rise and fall of the Tiger nouveau riche... NOW THAT we’re in an economic war zone, I’ve been thinking about the Economic War. As my family was a direct victim of that conflict, I was reared with a rather one-sided view of the times that went beyond the abstract account in history books... My great-grandfather retired from a successful medical career and bought land in Meath which he farmed profitably. He must have done well because my grandfather was educated privately in England and in a literal manifestation of his position in society there was even a family pew in the upstairs gallery of the rural parish church. All went well until Éamon de Valera, the most pernicious and malign figure in Irish history, in a fit of ideological insanity implemented a set of policies that cut off our country’s only export market – England – for our only product – food – and thus crippled Ireland’s economy and in the process permanently ruined that class of people to which the now poor Dr Carey belong

No Sniptoeing through the tulips for Brian's gang... Colm McCarthy was laid-back, but serving up his menu to a queasy public is going to strain Ministers’ stomachs... AFTER YEARS of high living, our political leaders arrived at the Café From Hell yesterday and were forced to confront a menu of the most foul and indigestible choices. The Taoiseach and his Ministers will have recoiled from the bill of fare, but they also know that if they don’t order and dispatch an ample sufficiency, the consequences for them and the rest of the country could be catastrophic. There’ll be no Sniptoeing through the tulips for Brian and the gang after the steaming mess of cuts that Colm McCarthy served up to their sophisticated noses. What’s worse, when they’ve properly perused what’s on offer, they’ll have to dish out McCarthy’s recommendations to an already queasy public. Will the Government have the stomach to do it? Brian Lenihan – the man who has to send out the plates – appealed for calm after th

Until we see some real green shoots, praying to a tree stump may be the next best thing... It's a miracle. It's a sign from above in bad times. It's a tree stump. It all depends on where you stand, how you view the tree stump in the churchyard in Rathkeale, County Limerick. People from all over the country have been coming to pray at the stump, in which they perceive an image of the Virgin Mary. Workmen removing old trees from the grounds of the Holy Mary Parish Church, having sawn away the upper part of the tree, noticed that the leftover stump had an unusual shape. They believed it looked like the Virgin Mary. The parish priest could have seen this as a great opportunity to revive the faith, but instead, he talked commonsense. "There's nothing there," he said crisply "It's just a tree. You can't worship a tree." God help him, he's fighting an uphill battle, as local teenagers line up in the Church in the evenings to say the Rosary in a

Learning from the credit crunch. NEXT MONTH marks the second anniversary of the “credit crunch”, the global financial crisis which has led to the worst economic downturn Ireland has experienced in a century... However, these experiences can be put to good use by informing future investment decisions. While the most obvious lesson to be learnt from the crisis is that nothing is certain and anything is possible – who could have predicted that Anglo would be nationalised – there are basic investment fundamentals that got lost during the boom years that should be borne in mind. 1 Diversify, diversify, diversify: Diversification, whereby you spread your investments across asset types, industries and economies, is a fundamental investment technique aimed at reducing risk and increasing long-term returns. During the celtic tiger, when Irish property prices soared and bank stocks led the Iseq to boom, investors were loath to spread their investments away from the Irish economy. That has resul

House prices fall 20pc but owners still battling to sell... THE average asking price of a house in Ireland has plummeted by almost 20pc over the past year, a new survey has revealed. And asking prices for residential property in Dublin's city centre have been slashed by almost a third, compared to the same period 12 months ago. A report by property website Daft.ie reveals that asking prices for residential property fell almost 6pc nationwide in the second quarter of the year, a significantly larger drop than in the first three months and in line with falls in late 2008. Dublin continues to be worst affected by tumbling house prices -- the average price tag on a home in the capital is 27pc lower than the 2007 peak, while prices for city centre houses have fallen by 34pc. During April, May and June of this year, homes in the city centre fell a further 11pc, compared to a 4pc drop for houses in Cork, 6pc in Limerick and a fall of just over 2pc for homes in Galway and Waterford cities

Crazy to sell in a buyer's market? If you are considering selling property but are afraid it might be neither nor viable nor sensible at this time, you may be pleasantly surprised to discover that there is a market out there – you just have to know your audience and what appeals to them... If you have a property that you are keen to sell, you may be debating the wisdom of doing so at a time when prices are dipping and so many others are holding back, but though it may feel like a lonely and risky path to take now, you would not be the only person in the country doing it. "We're seeing a mix of people selling at the moment," says Gillian Flanagan of Felicity Fox Auctioneers in Dublin. "We have a lot of people trading up, particularly young families with children who have outgrown the space they're in, people who need to move because their employment has changed location and people from different countries who are moving home. At the same time, a lot of people

TDs 'cut and run' as 3,000 jobs a week lost Action on Bord Snip to be delayed as public sector gears for the fight... The silent destruction of the real economy will continue virtually unchecked for a further six months, during which time TDs will enjoy a three-month summer holiday and the Government will prepare to re-run the Lisbon Treaty referendum. In that six months, a further 100,000 jobs will be lost, bringing to an unprecedented 500,000 the number of private sector workers now out of work -- a staggering 90 per cent increase in just a single year of an unrelenting economic crisis . The report of the Expenditure Review Committee, also known as An Bord Snip Nua, has now been submitted in draft form to various Government departments. It makes recommendations in relation to cuts of up to €5bn in current spending to eliminate a deficit of €15bn, of which €6bn relates to bailing out the banks. The report will be officially presented to Finance Minister Brian Lenihan on Wednes