NAMA to provide guarantees to home buyers against falls in house prices

Nama hopes negative equity plan will kick-start sales

HOW DO you encourage people to buy a home at a time when the price of property is continuing to fall? The National Asset Management Agency (Nama) believes it may have part of the answer.


"It will work like this.

* A property in Nama is for sale at €200,000 in 2011. A couple approaches a bank with a €20,000 deposit, seeking a €180,000 mortgage. The couple are however worried that the value of property may fall, leaving them in negative equity.

* Nama will defer 20 per cent of the property's current value, €40,000 in this case. The payment of this amount will only be due to Nama if the value of the property is maintained or increased over the next five years

* All dealings by the couple are with the bank - they do not deal with Nama at any stage. The bank approves the €180,000 mortgage, the purchase is completed and repayments begin."

Link to Story in today's Irish Times: [broken link removed]
 
Interestingly it seems NAMA and the Department of the Environment do not agree with this approach/initiative. Further reading of this article shows that Minister for Housing Willie Penrose believe that it runs counter to the housing policy which states that such initiatives were part of the problem here in Ireland that has led to the artifical housing bubble which we are all currently experiencing.

Question - where can I locate the Housing Policy? It is published and available online?
 
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My initial reaction is that this is an effort to offload the dregs of what NAMA has in stock before it's too late and no one will touch it. There are actually two articles in the IT today on this. This is the second, which outlined discord over the plan from the government: [broken link removed]

I sincerely hope this turns out to be as successful as the Home Choice Loan scheme.
 
andycole said:
Interestingly it seems NAMA and the Department of the Environment do not agree with this approach/initiative. Further reading of this article shows that Minister for Housing Willie Penrose believe that it runs counter to the housing policy which states that such initiatives were part of the problem here in Ireland that has led to the artifical housing bubble which we are all currently experiencing.

Question - where can I locate the Housing Policy? It is published and available online?
Click to expand...
http://www.environ.ie/en/DevelopmentHousing/Housing/HousingPolicy/
 
I heard that there are a range of house types available suitable for first time buyers and owner occupiers and NAMA insists the initiative may be rolled out to further properties in due course.
 
Did all these properties sell, quite soon after it's launch it was hailed as a big success but if I understood it correctly a lot of people didn't apply for a mortgage?
 
Sorry to bump this but does anyone know did the properties sell and what percentage of them used this new type of laon?
 
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