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Firesales!

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  • 06-08-2009 6:21pm
    #1
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭


    Will we be seeing a lot more of these soon?
    So many big developments just living idiol!!!


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    #2
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    I don't think we'll be seeing many for a good while. NAMA will ensure house prices are kept artificially high for as long as possible.


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    #3
    Dob74
    Registered Users Posts: 1,049 ✭✭✭Dob74


    It's a joke the a-holes who where ribbing everyone off are being bailed-out so they can rob us some more.
    Welcome to the banama republic


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    #4
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    NAMA will kept prices artificially higher, but it wont have the huge effect many think it will. Property prices are set by the market, and although i dont know what percentage of properties for sale will be in NAMA, it wont be anywhere near a majority, a huge amount of it is commercial.
    Plenty of small developers (especially in rural areas) have large holdings but wont be part of NAMA, banks wont be laying off the pressure just because they get a huge amount of bad debt off their books, if anything i would say once the big fish are gone the small fish will be pushed harder.

    Firesales (by definition) wont happen in Ireland, banks are the only people that really know what property is selling for at the moment (in small, quantities) and they will push developers to set prices slightly below this level.
    An example is a small developer close to me, UB basically gave him 6 months to clear the 25ish houses he had back in sept/oct 2008. He sold one or two, then UB set the price at the start of 2009, they reduced them by 8-10%, which was hardly the firesale i expected. They will probably reduce them again by 10% or so before the end of the year. And this pattern will continue.


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    #5
    jimmycrackcorm
    Registered Users Posts: 14,339 ✭✭✭✭jimmycrackcorm


    AARRRGH wrote: »
    I don't think we'll be seeing many for a good while. NAMA will ensure house prices are kept artificially high for as long as possible.

    Prices are on a downward slope regardless of Nama.


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    #6
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    jimmycrackcorm wrote: »
    Prices are on a downward slope regardless of Nama.

    yes but falling house prices and firesales are very different things.


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    #7
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    NAMA will prevent firesales but will not keep property prices high. They are on the way down. NAMA will merely ensure that the losses are spread to everyone in the country rather than just those that took the gamble.


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