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dryrot

Irish Developer Chief Lets The Truth Out

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Hi

http://www.irishtimes.com/newspaper/irelan...4251960911.html

A “fire sale†of residential or commercial property could result in prices falling by 50 per cent or more, the head of the Construction Industry Federation (CIF) has claimed. The organisation’s director general Tom Parlon said the prospect of major banks seeking recovery of their debts from developers would have a disastrous effect on property prices and the economy. He said the whole rationale of establishing the National Asset Management Agency (Nama) was to prevent such a scenario.

[deleted]

Speaking on Morning Ireland on RTÉ yesterday, Mr Parlon said [...] “The reason that Nama was set up was to keep liquidity and to avoid fire sales. If it was the case that a very significant amount of residential and commercial property was to come on the market, certainly it would reduce the value,†[...] “Any fire sale now without liquidity or confidence in the market could mean that property prices could be halved. If Nama was delayed further other financial institutions would go down this route. It would have a devastating effect on property prices and on the whole economy,â€

So the CIF Chief admits house prices are 100% overvalued, and NAMA is designed to prop them up.

(Note that Irish borrowing against fantasy local house values was used to invest in the North of England and NI. That's all coming down, too.)

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(Note that Irish borrowing against fantasy local house values was used to invest in the North of England and NI. That's all coming down, too.)

A much forgotten consequence of the boom, the Irish where using the "equity" to buy up all sorts of things, they even drove up the price of farmland in the UK. They were more prolific property speculators in Spain and the rest of Europe as a percentage of their population then the UK.

There are so many elephants in the room there is no space for people and yet many still don't get how much further this has to unravel. Essentially all the ramping and misinformation is just dragging the process out which is painful for a STR like me but it does has the plus side we are less likely to eating cans of baked beans on a daily basis. We are heading Japan as a best case scenario.

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A much forgotten consequence of the boom, the Irish where using the "equity" to buy up all sorts of things, they even drove up the price of farmland in the UK. They were more prolific property speculators in Spain and the rest of Europe as a percentage of their population then the UK.

There are so many elephants in the room there is no space for people and yet many still don't get how much further this has to unravel. Essentially all the ramping and misinformation is just dragging the process out which is painful for a STR like me but it does has the plus side we are less likely to eating cans of baked beans on a daily basis. We are heading Japan as a best case scenario.

It could be an interesting global tour.

We started out being the US. We are on track to becoming Japan. After that, we could expect to become Argentina for a while before finally settling on Zimbabwe.

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So people already priced out of owning a home now face paying a lot more tax so that they can remain being priced out of owning a home. Truely immoral.

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So people already priced out of owning a home now face paying a lot more tax so that they can remain being priced out of owning a home. Truely immoral.

I had never thought of it that way but you are exactly right.

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So people already priced out of owning a home now face paying a lot more tax so that they can remain being priced out of owning a home. Truely immoral.

Whilst I believe the Irish Gov has now no option to go with NAMA as they couldn't afford to nationalise all the banks, there is a lot of truth in what you are saying.

Flip side - they let it go bang last Oct and the whole currency is worthless. Savings, pensions, any net worth gone, out of EU. Property would be dirt cheap, but could anyone buy it.

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It could be an interesting global tour.

We started out being the US. We are on track to becoming Japan. After that, we could expect to become Argentina for a while before finally settling on Zimbabwe.

:lol:

Yes there is no guarantee we will be stopping there which is why I class it as the best case outcome.

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It could be an interesting global tour.

We started out being the US. We are on track to becoming Japan. After that, we could expect to become Argentina for a while before finally settling on Zimbabwe.

Ho wonderfully multi-cultural we are as a nation (wipes tear from eye)

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A much forgotten consequence of the boom, the Irish where using the "equity" to buy up all sorts of things, they even drove up the price of farmland in the UK. They were more prolific property speculators in Spain and the rest of Europe as a percentage of their population then the UK.

There are so many elephants in the room there is no space for people and yet many still don't get how much further this has to unravel. Essentially all the ramping and misinformation is just dragging the process out which is painful for a STR like me but it does has the plus side we are less likely to eating cans of baked beans on a daily basis. We are heading Japan as a best case scenario.

land prices in northern ireland reached up to 20k an acre or was it 10. whatever it is madness based on southern speculation

Edited by getdoon_weebobby

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Let's be clear here, it is not the fault of a particular trait of Irish personality.

The very low interest rates when they entered the Euro meant that a property boom was going to be on the cards. They had never had rates so low.

Can you imagine what things would have been like we had gone in? Different scale of blow up altogether.

Why not the French or Germans then? Not saying its something specifically Irish, more likely something about speaking English - UK, US, Aus, Costas., Brittany.. Everywhere there are English speakers there is property speculation (or being a lazy stupid fvck, as I prefer to call it).

Edited by murpaul

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Why not the French or Germans then? Not saying its something specifically Irish, more likely something about speaking English - UK, US, Aus, Costas., Brittany.. Everywhere there are English speakers there is property speculation (or being a lazy stupid fvck, as I prefer to call it).

The "English" spiv has reeked HAVOC across the world.....

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