Hmm, no. Nama only has to generate 30bn from selling its loan/underlying assets to breakeven against the price it paid ofr the loans. it needs to make a much smaller profit number to cover operating costs. If it did make 30bn profit then it would have recovered all the value lost when forcing the discount on the banks and that is never going to happen. I think the original estimate was a 10bn profit on the written down value of the loans but that has subsequently been re-estimated to zero.Could be worse news I suppose. But NAMA has to make about 30 billion profit if the overall figure is to break even.
From the link:Its on paper only. Use mark to market values on its rotten portfolio, the losses would be horrific.
Now, correct me if I'm wrong, but what more definitive marking to market on the properties sold than actually selling them...?The total value of Nama's loan book at the end of June was €24.8 billion. That includes €7.9 billion in cash received from debtors and generated through property sales but also takes account of the €2.9 billion writedown in the value of the loans.
So after 2 years of acquiring a property portfolio at 70% discount, it has sold less than a quarter of that portfolio and you think that they are fantastic?From the link:
Now, correct me if I'm wrong, but what more definitive marking to market on the properties sold than actually selling them...?
So after 2 years of acquiring a property portfolio at 70% discount, it has sold less than a quarter of that portfolio and you think that they are fantastic?
What remains in the rest of the 75%? Does it tally with real property or is it infested with multiple mortgages scams? If you were to put its entire property portfolio up on e-bay today, would your beloved NAMA still be profitable?
BTW - The original portfolio was 31.5 Billion. That 7.9 Billion is not included in the 24.8 Billion current balance. Please do try to source the original report before adapting the pretense of knowledge.
Not alone that, but there is also a bit of a rush for the good stuff as the insiders get to know of what's on offer at knock down prices, further skewing the pace of disposal of the overall package.Indeed and like anything all the pretty good stuff sells off first and the rubbish will be hard to sell down the line
If you mean by not dumping its entire portfolio on the market right now and 'lettign the market do its job' then yes. But to subscribe to that theory you have to be mad.Isn't NAMA pretty much just propping up useless property value at an artificial level though?
The biggest problem with NAMA was that it was designed to do one thing, then in the length of time it took to set up it was tasked with a totally different job with a far bigger scope.I wouldn't have that was ever going to be particularly useful for the citizens of Ireland.
Nama's justification for that is that it's "protecting" Irish assets from foreign asset strippers with deep pockets, so that when property values recover all the profit won't go abroad.Isn't NAMA pretty much just propping up useless property value at an artificial level though?
I wouldn't have that was ever going to be particularly useful for the citizens of Ireland.