Leading banks prepare to sell off 1600 properties - Irish Independent

BookBook

How are the banks allowed to do this when there is a shortage of homes for sale for people who actually want to live in them.

http://www.independent.ie/irish-news/leading-banks-prepare-to-sell-off-1600-houses-30604015.html

Crusades

Cash out now before SF/ULA get in to power?

The great thing about banking:
- during good times, loan out as much money as you can for $1m houses (you only need $100k on deposit to loan out $1m)
- during bad times, repossess said houses for 30cent on the dollar (and still have the debtor on the hook for the remaining 70c)

Looks to me like NAMA are releasing properties bought for 30c for 50c/60c. Prudent enough - there are loads of big UK property rental companies who would see Ireland as a good opportunity for them to graft their business model to the Irish market.

But do these investors know what's in store for post 2016 Ireland?

ted1

BookBook wrote: »

How are the banks allowed to do this when there is a shortage of homes for sale for people who actually want to live in them.

http://www.independent.ie/irish-news/leading-banks-prepare-to-sell-off-1600-houses-30604015.html

And people will live in them. What exactly are you giving out about ?

GavMan

ted1 wrote: »

And people will live in them. What exactly are you giving out about ?

As tenants, not owner occupier

who_ru

ted1 wrote: »

And people will live in them. What exactly are you giving out about ?

They are available to purchase to investment/vulture funds only. Not the Irish public. Many of whom would quite like to be able to buy a suitable property to live in and possibly raise a family. These people, Irish tax payers, paying extortionate taxes, having the private pensions raided by the govt, cannot buy any if these properties because the banks, and by extension the Govt, won't sell to them, despite their hollow claims to want to do something for FTBs.

Frank Lee Midere

who_ru wrote: »

They are available to purchase to investment/vulture funds only. Not the Irish public. Many of whom would quite like to be able to buy a suitable property to live in and possibly raise a family. These people, Irish tax payers, paying extortionate taxes, having the private pensions raided by the govt, cannot buy any if these properties because the banks, and by extension the Govt, won't sell to them, despite their hollow claims to want to do something for FTBs.

Yes. These properties will not be included in the price rises because the sale price is hidden. Nor are the government helping these guys to build more property. It's a deliberate ploy to keep prices higher so that the rental market is taxed to make it impossible to get into home ownership.

lima

It is a wicked, evil thing to do to deprive first time buyers of the chance to purchase their first home for a normal price. I want to tear up any irish flag but I have enough toilet roll to wipe my a*se with.

I have a six figure wad of cash and mortgage approval to purchase my first home but I have been waiting for two years now because of the 'conspiracy' to deprive buyers of supply. I'll happily take my money elsewhere as the missus is from abroad but some people aren't as lucky and have to stay in this lunatic sad vested-interest peripheral hole.

handlemaster

Investors won't want to see these properties empty so don't see the issue. If the banks were to sell these units individually it would cost more i.e. the tax payer pays more.

I'm guessing its easier to cast aspersions when your not of a position of power but when the bare facts are laid out the view changes.

handlemaster

lima wrote: »

It is a wicked, evil thing to do to deprive first time buyers of the chance to purchase their first home for a normal price. I want to tear up any irish flag but I have enough toilet roll to wipe my a*se with.

I have a six figure wad of cash and mortgage approval to purchase my first home but I have been waiting for two years now because of the 'conspiracy' to deprive buyers of supply. I'll happily take my money elsewhere as the missus is from abroad but some people aren't as lucky and have to stay in this lunatic sad vested-interest peripheral hole.

No one "has to stay" as you say you have "six figure wad of cash" away you go. The tearing up the Irish flag is a little over dramatic and a little disingenuous to your fellow country men and women.

The banks have made a concerted effort to rid the country of the toxic property loans and when the economy is showing signs of a recovery is a good time to off load.

lima

handlemaster wrote: »

No one "has to stay" as you say you have "six figure wad of cash" away you go. The tearing up the Irish flag is a little over dramatic and a little disingenuous to your fellow country men and women.

The banks have made a concerted effort to rid the country of the toxic property loans and when the economy is showing signs of a recovery is a good time to off load.

To the detriment of first time buyers, most of whom did not contribute to the economic demise. This keeps prices rising. All the while there's all those people not paying their mortgages. Rents are going up. No stock. It is completely reasonable to despise this country from my point of view. The ideals of the flag are as dead as the rebels who 'freed' us so it's is as worthless as toilet roll.

who_ru

handlemaster wrote: »

No one "has to stay" as you say you have "six figure wad of cash" away you go. The tearing up the Irish flag is a little over dramatic and a little disingenuous to your fellow country men and women.

The banks have made a concerted effort to rid the country of the toxic property loans and when the economy is showing signs of a recovery is a good time to off load.

Are you nuts? The banks created the toxic loans in the first place for Christ sake. They created the credit bubble, they created the developers who have billions of euro in debt. We, the people, bailed the banks out, not the other way round. Good grief.

drumswan

GavMan wrote: »

As tenants, not owner occupier

And? More private rental accomodation is desparately needed in the city.

handlemaster

who_ru wrote: »

Are you nuts? The banks created the toxic loans in the first place for Christ sake. They created the credit bubble, they created the developers who have billions of euro in debt. We, the people, bailed the banks out, not the other way round. Good grief.

I love history but we live today and who now owns the banks is what is important

ted1

GavMan wrote: »

As tenants, not owner occupier

And? They will have professional landlords who will be quick and efficent when issues arise, good with regards returning deposits.

The banks will offload the properties that they don't want with minimal costs and time. Banks are not mandated to be estate agents

lima

ted1 wrote: »

And? They will have professional landlords who will be quick and efficent when issues arise, good with regards returning deposits.

The banks will offload the properties that they don't want with minimal costs and time. Banks are not mandated to be estate agents

..and families struggling to find property to purchase will remain kept out of the market.

drumswan

lima wrote: »

..and families struggling to find property to purchase will remain kept out of the market.

Why do we need to prioritise 'families' and first time buyers above everyone else? The city needs high quality professionally managed rental accommodation to attract the staff required to run the MNCs driving our economy

handlemaster

lima wrote: »

..and families struggling to find property to purchase will remain kept out of the market.

From what I understand from your posts your holding off to buy perhaps other people are/ should do the same.

ted1

lima wrote: »

..and families struggling to find property to purchase will remain kept out of the market.

So effectively your asking for social housing.

jmayo

handlemaster wrote: »

Investors won't want to see these properties empty so don't see the issue. If the banks were to sell these units individually it would cost more i.e. the tax payer pays more.

I'm guessing its easier to cast aspersions when your not of a position of power but when the bare facts are laid out the view changes.

The only issue I have with this is that we are basically pricing out (or in this case just not selling to) people who would like to enter the property market just to buy a "home" and these are the same people who actually will be paying for the banks messes for decades through increased taxes and decreased services.

Of course it is good for NAMA/banks to get as much as possible for property to recoup as much of the losses as possible, but lets be honest these are banks and the Irish state involved here.
When have Irish banks ever been honest and ever considered the people of this state.
And ffs one of them is AIB, who even used the regulatory arms of the state to shut up their own whistleblowers.

Somewhere a cushy inside deal will be done (again think of AIB and insider deals involving Caribean islands) and anyone that thinks the Irish taxpayers will get back all the money blown on banks through either NAMA loan buyouts or recapitalisation/nationalisation is living in cloud cuckoo land.

To me this is just another transfer of wealth.

the world wonders

lima wrote: »

..and families struggling to find property to purchase will remain kept out of the market.

...but families who are in a much tougher situation, struggling even to find a property to rent, will have their situation slightly improved.

jmayo wrote:

The only issue I have with this is that we are basically pricing out (or in this case just not selling to) people who would like to enter the property market just to buy a "home" and these are the same people who actually will be paying for the banks messes for decades through increased taxes and decreased services.

yes, it's a well known fact that renters pay no tax.

handlemaster

jmayo wrote: »

The only issue I have with this is that we are basically pricing out (or in this case just not selling to) people who would like to enter the property market just to buy a "home" and these are the same people who actually will be paying for the banks messes for decades through increased taxes and decreased services.

Of course it is good for NAMA/banks to get as much as possible for property to recoup as much of the losses as possible, but lets be honest these are banks and the Irish state involved here.
When have Irish banks ever been honest and ever considered the people of this state.
And ffs one of them is AIB, who even used the regulatory arms of the state to shut up their own whistleblowers.

Somewhere a cushy inside deal will be done (again think of AIB and insider deals involving Caribean islands) and anyone that thinks the Irish taxpayers will get back all the money blown on banks through either NAMA loan buyouts or recapitalisation/nationalisation is living in cloud cuckoo land.

To me this is just another transfer of wealth.

If they get the best price . . Job done.

Duckjob

We need to "get property prices up another little bit". Didn't you get Michael Noonan's memo?

MouseTail

How are banks selling off 1600 vacant units to an Investment Trust, who will then release them to the rental sector, in a period of chronic shortage of rental properties and escalating rents bad news?

mr_seer

who_ru wrote: »

Are you nuts? The banks created the toxic loans in the first place for Christ sake. They created the credit bubble, they created the developers who have billions of euro in debt. We, the people, bailed the banks out, not the other way round. Good grief.

Don't forget the role of the government in all of this. This is all Michael Noonan's brainchild for a grand "recovery" for the well housed grey hairs

mr_seer

jmayo wrote: »

The only issue I have with this is that we are basically pricing out (or in this case just not selling to) people who would like to enter the property market just to buy a "home" and these are the same people who actually will be paying for the banks messes for decades through increased taxes and decreased services.

Of course it is good for NAMA/banks to get as much as possible for property to recoup as much of the losses as possible, but lets be honest these are banks and the Irish state involved here.
When have Irish banks ever been honest and ever considered the people of this state.
And ffs one of them is AIB, who even used the regulatory arms of the state to shut up their own whistleblowers.

Somewhere a cushy inside deal will be done (again think of AIB and insider deals involving Caribean islands) and anyone that thinks the Irish taxpayers will get back all the money blown on banks through either NAMA loan buyouts or recapitalisation/nationalisation is living in cloud cuckoo land.

To me this is just another transfer of wealth.

They will actually get a lower return as the hedge fund buying the assets will expect to get a significant bulk discount.

lima

ted1 wrote: »

So effectively your asking for social housing.

I am not. Don't be smart :rolleyes:

lima

the world wonders wrote: »

yes, it's a well known fact that renters pay no tax.

Icepick

who_ru wrote: »

Are you nuts? The banks created the toxic loans in the first place for Christ sake. They created the credit bubble, they created the developers who have billions of euro in debt. We, the people, bailed the banks out, not the other way round. Good grief.

They came to peoples' homes and held gins to their heads until they signed for 100% mortgages!11!!!1

lima

drumswan wrote: »

Why do we need to prioritise 'families' and first time buyers above everyone else? The city needs high quality professionally managed rental accommodation to attract the staff required to run the MNCs driving our economy

We don't, I don't have a family yet, but from experience on these boards no-one gives a cr*p about single purchasers without children. Once you throw kids in the mix, everyone gets all sympathetic (ahh be jasus de poor families can dey not stay in der homes)

lima

MouseTail wrote: »

How are banks selling off 1600 vacant units to an Investment Trust, who will then release them to the rental sector, in a period of chronic shortage of rental properties and escalating rents bad news?

Because there are 1000's of people waiting to buy their first homes and they will be deprived of the opportunity to own their own homes. This all driven by the government who are meant to be there to look after the people.

Icepick

mr_seer wrote: »

They will actually get a lower return as the hedge fund buying the assets will expect to get a significant bulk discount.

Because it's much cheaper to sell them in bulk.