Comments on: NAMA – National Asset Management Agency http://www.moneyguideireland.com/nama-national-asset-management-agency.html Money - Savings - Mortgages and Price Comparison in Ireland Mon, 08 Mar 2010 17:57:09 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Andrew http://www.moneyguideireland.com/nama-national-asset-management-agency.html/comment-page-1#comment-4303 Andrew Fri, 28 Aug 2009 18:27:56 +0000 http://www.moneyguideireland.com/nama-national-asset-management-agency.html#comment-4303 If the People of Ireland are wondering how NAMA will work out, look no further that Fanny Mae and Freddie Mac over here in the good 'ol US of A. If the People of Ireland are wondering how NAMA will work out, look no further that Fanny Mae and Freddie Mac over here in the good ‘ol US of A.

]]> By: Gerard bonner http://www.moneyguideireland.com/nama-national-asset-management-agency.html/comment-page-1#comment-4177 Gerard bonner Fri, 21 Aug 2009 00:43:15 +0000 http://www.moneyguideireland.com/nama-national-asset-management-agency.html#comment-4177 Folks, We're in a sticky wicket here. NAMA is a guaranteed tsunami. To value anything as a percentage of irrational prices at the height of a bubble is utter nonsense. In the long-term property is valued proportionate to rental income. Annual rent is 11 times monthly rent, allowing 8% for a maintenance sinking fund. Historically in Ireland (until the advent of the bubble) a property's sale value was approx. 11 times annual rent value. Even today in New York a canny Jewish investor won't pay one brass cent over 11 times annual rent to purchase property. But let's allow a bit more here for the innate Irish desire to 'own my own home'. Let's push it out to an absolute outer limit of 14 times.So, we have a house with a projected mid-term rental income of €1,000 p.m., that's €11,000 p.a., then the maximum value that can be tagged to that house is 14 times €11,000 = €154k, or realistically 11 times €11,000 = €121k. My math tells me that NAMA will take on debt +maintence +admin. +++ for that house using their mind-boggling unintelligible 'formula' of €220k. The whole thing adds up to economic wipeout for Ireland. Folks, this is a constitunal Republic, for the greater good of the people, not their enslavement. We need to take control back from the FOOLS we stupidly handed it to. Edmund Burke is turning in his grave. Folks,
We’re in a sticky wicket here. NAMA is a guaranteed tsunami. To value anything as a percentage of irrational prices at the height of a bubble is utter nonsense. In the long-term property is valued proportionate to rental income. Annual rent is 11 times monthly rent, allowing 8% for a maintenance sinking fund. Historically in Ireland (until the advent of the bubble) a property’s sale value was approx. 11 times annual rent value. Even today in New York a canny Jewish investor won’t pay one brass cent over 11 times annual rent to purchase property. But let’s allow a bit more here for the innate Irish desire to ‘own my own home’. Let’s push it out to an absolute outer limit of 14 times.So, we have a house with a projected mid-term rental income of €1,000 p.m., that’s €11,000 p.a., then the maximum value that can be tagged to that house is 14 times €11,000 = €154k, or realistically 11 times €11,000 = €121k. My math tells me that NAMA will take on debt +maintence +admin. +++ for that house using their mind-boggling unintelligible ‘formula’ of €220k. The whole thing adds up to economic wipeout for Ireland.
Folks, this is a constitunal Republic, for the greater good of the people, not their enslavement. We need to take control back from the FOOLS we stupidly handed it to. Edmund Burke is turning in his grave.

]]> By: Chuck Wall http://www.moneyguideireland.com/nama-national-asset-management-agency.html/comment-page-1#comment-3216 Chuck Wall Mon, 29 Jun 2009 15:03:20 +0000 http://www.moneyguideireland.com/nama-national-asset-management-agency.html#comment-3216 I am seeing speculation on the AIB stock board that once NAMA is implemented the PPS of AIB US stock will rise from it's present level of around $4.80 to $20 or $30 again. I can not see how that would be possible. Has anyone calculated the impact of NAMA on Bank shareholders and is this calculation available. As I understand NAMA presently loans would be moved off the banks balance sheet to NAMA at a discount (to be determined) and the bank wold have to "write down" the difference as a loss. How could that possibly be a positive event for shareholders? Has anyone actually thought this through enough to understand all the details behind how this will work. Disclosure, I do own a small amount of AIB stock that is in the positive return range at the moment. Sounds a bit crazy to me, but it is a modest amount. I am also a customer at AIB in Lismore. Respectfuly, Chuck Wall I am seeing speculation on the AIB stock board that once NAMA is implemented the PPS of AIB US stock will rise from it’s present level of around $4.80 to $20 or $30 again. I can not see how that would be possible. Has anyone calculated the impact of NAMA on Bank shareholders and is this calculation available. As I understand NAMA presently loans would be moved off the banks balance sheet to NAMA at a discount (to be determined) and the bank wold have to “write down” the difference as a loss. How could that possibly be a positive event for shareholders? Has anyone actually thought this through enough to understand all the details behind how this will work. Disclosure, I do own a small amount of AIB stock that is in the positive return range at the moment. Sounds a bit crazy to me, but it is a modest amount. I am also a customer at AIB in Lismore.

Respectfuly,

Chuck Wall

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