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The problem is that the assets to be "namaised" represent such a huge fraction of development property that any notion of market value is, at the moment purely notional.  Very few property transactions are taking place at the moment - because there is no confidence or credit available - and if all the Nama properties were put on the market to cover the banks liabilities there would be an almighty crash in property values.  

Already their are reports of instances where property values have crashed by up to 90% in particular areas.  A period mansion on a country estate with something like 15 houses on it near Kilkenny was valued at €10 Million and has been put on the market by the receiver at €1 Million.  Some houses that were 300K in more remote areas are now on offer at €90K.  

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Sep 16th, 2009 at 06:59:14 PM EST
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There is nothing wrong with the state acquiring property rights over land. That they have to do it at extortionate prices is unfortunate.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Thu Sep 17th, 2009 at 04:32:05 AM EST
[ Parent ]
Nothing wrong with that which cannot be solved by a confiscatory wealth tax and a crack-down on tax fraud enabling countries like Lichtenstein and the Channel Islands.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Sep 17th, 2009 at 06:46:49 AM EST
[ Parent ]


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