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okaycuckoo

An Attempt To Energise The Property Market

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I'm trying to think of a parallel scam used by the UK builders during the boom, but can't put my finger on it. Any ideas?

I'm sure the same thing is coming to the UK at some point. After all, we're still not sure what's happened to all the repos of NRK etc.

NAMA chairman Frank Daly said that, following talks with AIB and Bank of Ireland, it had come up with a deferred payment scheme, which would link payment to the value after five years of any NAMA property bought.

Under the scheme, a purchaser would seek a mortgage of €180,000 and pay a deposit of €20,000 on a property linked to a NAMA loan for sale for €200,000.

NAMA then agrees to defer the payment of 20% of the current value of the property, in this case €40,000. Should the property be worth €200,000 or more after five years the buyer's repayments will continue to cover the €40,000.

If after five years the property has fallen in value - to, for example, €160,000 - NAMA waives the outstanding €40,000 from the 2011 purchase price. The purchaser will then have to pay back just €140,000 of the original €180,000 loan.

The scheme will be launched on a pilot basis this autumn, and should apply to 12,000 individual residential units.

http://www.rte.ie/news/2011/0728/nama-business.html

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One of the builders came up with a similar sounding scheme over here. Might have been Barratt.

There was also a story once about an estate agent offering something similar - might have been in Thurrock/Grays area.

Vague enough? Sorry, memory fails ;) but I'm sure others will recall.

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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