NAMA figures dont addup

ei.sdraob

http://www.ronanlyons.com/2009/09/17/do-the-nama-figures-add-up-a-broader-and-more-realistic-assessment-of-long-term-economic-value/

found this great article and analysis on NAMA

beside the shocking amount of non Irish property on books



the working out of the figures comes to the conclusion that we are very much overpaying
:mad:

Diarmuid

ei.sdraob wrote: »

beside the shocking amount of non Irish property on books

From my point of view, that's the only redeeming aspect of NAMA. I feel more confident about other property markets recovering than the Irish one and as such, we have some diversity in out property portfolio

ressem

More than that...
Lenihan and his department are arguing that yields are currently abnormally high, so property prices are likely to start heading up.

Doesn't this ignore that rents are currently at boom levels, retail rents are grossly too high relative to sales figures so yields will go down as business leases come up for renegotiation/end?
I think someone pointed out elsewhere that rent as a proportion of retail sales is typically 6%, not 20% as in Ireland's town streets.

from the supplimentary documentation on NAMA
http://www.finance.gov.ie/documents/speeches2009/sfbl034suppfinaldoc.pdf

The prime yields broadly represent the market’s evaluation of the attractiveness of investment in property. It is clear from the table that
follows the majority of European cities current prime yields are higher than their long term 20 year average, particularly Dublin where
the Prime Yield is at 7.25% in comparison to a 5.56% long term average.
As yields move towards their long term average this would indicate an increase in property prices given the inverse relationship
between yields and the underlying property prices.