Hurray for accBank?

Duke of Marmalade said:

I found that hard to believe and I was right. The link refers to rents in Dublin being 760 per annum whilst those in Berlin are 23 per annum, that's 33 times alright, except if you download the actual report, page 17 shows that Berlin's rate is in fact per month.

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Very good spot Duke. Apologies for the error. On that basis it is €276 v €760 p.a.

canicemcavoy said:

There's nothing "crazy" about current evaluations; they're still overpriced. Comparing rents and purchase prices of houses, you still cannot make even a small yield.

As VOR says, we have two contradictory ideas being held by people: the idea that we can become more affordable and competitive by lowering salaries, while simultaneously bailing out banks and developers and artificially propping up property prices. Irresistable force meets immovable object.

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Agree with this and VOR's comments.
Negative equity is not an issue if your house is where you plan to make your home for the foreseeable future.

The one thing that bothers me is that government is going to need reasonable price rises in the future to make NAMA work yet there is no evidence to suggest this - in fact probably price should drop.
Would I be cynical to suggest the government know this will not work but they will be long gone and not have to worry about it?

Not cynical at all. Governments have always preferred the "pay later" model.

Shawady said:

Would I be cynical to suggest the government know this will not work but they will be long gone and not have to worry about it?

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Nope, they'd never do that.

The head of Irish Assocation of Investment managers has warned against the government underpaying for the 90 billion loan book.
He states “An excessive haircut, with any taint of political motivation, any sense of ‘let’s stick it to these guys,’ would erode confidence.”

What about the government just paying the banks what the loans are now actually worth.

Shawady said:

The head of Irish Assocation of Investment managers has warned against the government underpaying for the 90 billion loan book.
He states “An excessive haircut, with any taint of political motivation, any sense of ‘let’s stick it to these guys,’ would erode confidence.”

What about the government just paying the banks what the loans are now actually worth.

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I'm Flip Flopping on this quite a bit as I'm no economist and don't know what's best, but this type of lets stick together and screw as much from the tax payer as possible **** is starting to get to me.

What about you try to sell the loan book on the open market then mister head of the "Irish Association of Investment Mangers". This confidence you speak of very high at the moment is it?

ACC's tack is simply this: In order to get LCs group into administration, the Irish banks had to pay off all the unsecured creditors and pool the resulting extra risk among themselves. ACC wants them to do it the same favour. They'll have to buy out ACC as the dissenting secured creditor, so ACC gets 100% payback. The Irish banks will lend LC another 100m odd and sell the loan on to, you guessed it, NAMA. So effectively NAMA and the Irish banks between them are giving ACC 100% for its bad LC loans, even though nominally NAMA isn't even covering ACC. Clever old Rabobank, think I'll deposit some dosh with them! (Don't think ACC is blackmailing whole system, just the ejjit Irish banks who are being ordered around by an eejit Irish government)

Shawady said:

The head of Irish Assocation of Investment managers has warned against the government underpaying for the 90 billion loan book.
He states “An excessive haircut, with any taint of political motivation, any sense of ‘let’s stick it to these guys,’ would erode confidence.”

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Mandy Rice-Davies said:

“Well, he would, wouldn't he?”

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