Elephant in the room: NAMA’s yield problem hasn’t gone away
With NAMA set to swing into operation, this post outlines the elephant in the room for NAMA: yields on Irish property. It also discusses how NAMA could still work for taxpayers – if those working for NAMA ensure that they make themselves fully aware of the true yields on various types of Irish property and how those yields may correct themselves over coming years. Read more
Another look at yields on Irish property, for the benefit of NAMA
With the NAMA draft business plan released earlier this week, this post reviews a key topic that remains unaddressed: the low yields on residential property. It finds that yields are clearly lower – far lower – than the 6% assumed both at the start of the NAMA process and now, in its business plan. Read more
Do the NAMA figures add up? A broader and more realistic assessment of long-term economic value
This post looks at the numbers behind NAMA in more detail, producing estimates of how much is in different segments of Irish and international property markets. It also critiques the calculation of long-term economic value, which turns out to be based on about 5% of the loan book, and presents revised estimates based on a broader sets of loans and more realistic assumptions. Read more