Following the launch of the NAMA negative equity mortgage on Tuesday, a boutique estate on castle grounds in county Meath is emerging as the star attraction of the initial offering of 115 homes under the NAMA scheme. With asking prices reportedly down 80% from the peak and “just 35 minutes from Dublin airport and Dublin city centre”, the three-bed terraced and semi-detached homes at Loughmore Square at Killeen Castle are stealing the limelight.
If it was madeleines that rekindled Marcel Proust’s memory of things forgotten, then perhaps the features list for these homes will rekindle not-altogether pleasant memories of the Celtic Tiger boom – granite worktops in the kitchen, marble fireplace, vaulted ceilings on the first floor, solid oak doors with Italian fittings, though more practically the first floor has concrete floors and the bedrooms all have balconies.
So what’s on offer? There are 18 terraced – “townhouses” – and semi-detached three-bedroom houses for €275,000. There’s a showhouse with all furniture and finishings included, offered at €320,000. NAMA’s chairman talked about the prices not being subject to haggling and that they were already “realistic” – we’ll see later this year when the House Price Database comes available if Frank was being truthful.
At the end of the day, the homes are modestly enough sized at 149 sq m (1,600 sq ft) but generously proportioned for what are three bedroom, 2.5 bathroom terraced and semi-detached homes. Is €171 psf for a well-designed terraced home on a castle estate adjacent to a so-called “Jack Nicklaus-signature” golf course value? NAMA says it will refund up to 20% of the purchase price should prices continue to fall. Bank of Ireland may advance you a mortgage at an annual 3.2% and mortgages are also available from Permanent TSB and AIB through its EBS branches. NAMA is only selling to owner occupiers, so you might have some confidence in who your neighbours will be.
Still interested? The brochure is here and the estate agents are Sherry FitzGerald. The estate was developed by Joe O’Reilly’s Castlethorn group, Joe is possibly best known for being the man behind the country’s most valuable shopping centre at Dundrum Town Centre. And remember, although we call these NAMA homes with a NAMA mortgage, it is the developer who is selling the homes under NAMA’s auspices and it is the banks themselves that will need approve any lending.
NAMA Wine Lake 
Great post by “jxbr” on The Property Pin showing the “80% drop” line up for the lie that it is:
http://www.thepropertypin.com/viewtopic.php?p=595045#p595045
If these are the snake-oil tactics that NAMA needs to resort to – then the game is up.
@WGU, the point about the 80% drop is well made but if I read the Independent report correctly
http://www.independent.ie/lifestyle/property-plus/golf-membership-and-course-views-on-offer-at-killeen-castle-from-475000-1902432.html
Asking prices for 3-bed terraced and semi-d started from €475,000 in October 2009. What would a reasonable settled price have been in October 2009? Say 20% off which would give you €380,000. According to the CSO, houses outside Dublin have fallen just under 30% since October 2009 to March 2012
https://namawinelake.wordpress.com/2012/04/26/dublin-residential-property-prices-increase-cso-publishes-irish-price-indices-for-march-2012/
so that would give you €286,000 today. Of course that might be just the market generally and who knows what the specific settled prices might have been in 2009 – more or less than €380,000 in 2009. But if the asking price – which is not subject to haggling according to the NAMA chairman – is €275,000 that seems to be in around the right ball-park. Mind you the €475,000 asking price included a golf club membership of a pretty decent golf club, but what value that today?
So the 80% decline reported in the Irish Times seems inaccurate and referring to a different development, but the prices would appear to reflect asking prices in 2009 adjusted for declines since.
By the way, NAMA naturally enough totally rejects that the property is overpriced and reminds us that the properties need be valued by the banks advancing the mortgages and also NAMA might ask what would be the point in overpricing the property today since the reconcilation in five years time would iron out any such overcharging.
Not sure if 20% off for October 2009 is enough – the stickiness of prices for “exclusive” developments like Loughmore Square makes them market anomalies.
Looking at “Collapso.net” for properties in Grange Hall, Dunshaughlin, Co. Meath – which is nearby Loughmore Square, but not trading on it’s “exclusiveness” – there’s a 30% price drop for one property in Feb 09 from €280K to €195K.
The Demense in Adare Manor seems to be more like the market Loughmore Square was aiming for. if you look at IrishPropertyWatch.net you can see a 7 bed from 2008 for €2.1M, a 5 bed from 2011 for €2.5M and now a 6 bed from 2012 for €450K.
Developments like Loughmore Square and The Demense, that were “all fur coat and no knickers”, had denial strongly ingrained in them.
If you see a 75% drop for The Demense as being indicative of where Loughmore Square should be then the current asking is most definitely overpriced.
I don’t see a bargain there, not even nearly a bargain.
300K plus to live in Dunshaughlin while Ireland goes broke waiting for the next austerity budget?
How much would this cost in 1988? That might be a better guide.
When I see stuff like this at this late stage of the crisis I sometimes think you are all gone crazy,
I wonder what the annual management fees are for maintenance and/or golf club membership. Sort of thing that should be in the brochure…
This is just NAMA tinkering at the edges, feeding the masses more sophomoric media driven tripe, in order to distract their attention from the fact that NAMA is doing nothing about managing and disposing of €20 billion of non productive distressed Irish property assets.
@WSTT, I think you’re absolutely right that this is a drop in the ocean – at most, the scheme is expected to apply to 750 homes with an average sale price of €200,000 or €150m in total, and that is tiny in the context of NAMA’s remaining assets of some €25bn+. I was going to spend some time examining how NAMA does the accounting – it is understood that NAMA will not make any provision in its accounts for a future repayment though it is likely that under International Accounting Standard 47 there will be a note to the balance sheet pointing out there is a contingent liability. However the maximum provision would be 20% of €150m or €30m and €30m is a droplet in the ocean, NAMA’s lending of 90-day €3.06bn to IBRC to temporarily pay the Anglo promissory note whilst Bank of Ireland (very slowly) seeks shareholder approval to cover the payment, should yield a similar sum – €30m – if NAMA has provided the funds on an arms-length basis.
For all of that though, the scheme has generated a lot of publicity and there does appear to be genuine interest in the scheme, and again fair play to NAMA for doing SOMETHING. It has three banks signed up to the scheme, it has been approved by the Competition Authority and the EC (still no sign of a published decision and a formal request is going in today) and the scheme shows NAMA has thought about how it can encourage sales of its assets, rather than sitting around waiting for the world to change.
115 homes at say avg. price 300,000 equates to 34.5 mil.
Total NAMA exposure is just under 7mil. to put it into perspective,they advanced that and more every month,w/o enhancing collateral or security to the dynamic duo at Tresaury for over a year.The press reporting on this is atrocious,almost got “aroused” myself reading it.
Housing in a requirement/need NOT an investment,in fact it’s a pretty lousy “investment”,but government and NAMA policy is to trumpet the benefits of house ownership and induce people into buying.This is just another form of “predatory” lending,if people and NAMA are fearful of further falls,then don’t take ordaniary working peoples hard-earned money via BS gimmicks.NAMA should stay away from fluffing and pimpimg the housing end of the business,and NOT be inducing people into the biggest financial decision of their lives,try collecting on this,no happy ending here for NAMA.
Clearly,they are incapable or in denial and can not execute or close any significant,domestic real estate transactions with professionals,some brite spark had a idea,let’s pick on hard working financially uneducated Irish people.We can make up a 80:20 deal,get them back buying,is this Govt. policy or NAMA,promoting homeownership into a falling market,inducing people to buy with garbage schemes and promises to make 20% of future losses whole!
NAMA should go do a few deals with professionals and stay out of ordinary peoples lives,just another predatory lender preying on ordaniary people,absolute disgrace.
@JG, An average of 60 houses/apartments per day, every day, emptied in 2011 as 75,000 people left the country. NAMA’s 115 home “initiative” is derisory against the reality background of depression era Ireland.
Small minded people facing a task of a magnitude that they are incapable of understanding. Small things amuse small minds and the country needs, and deserves, a NAMA organisation with minds that think at a higher commercial level and have a basic understanding of how the economy works.
“For all of that though, the scheme has generated a lot of publicity and there does appear to be genuine interest in the scheme, and again fair play to NAMA for doing SOMETHING”
Setting the bar a little low here,we constantly,endlessly reminded how NTMA/NAMA are “commercial” enterprises,competing with cut throat business people.
It appears any sense of pride or civic duty to assist in turning the country around is missing,by virtue of this justification for the overpaid staff at both organizations.Just as well none of them are getting paid based on transactions.
NTMA is redundant at present,who needs a 500,000 a year CFO,the D of F stated yesterday in its mission statement that 2014 is the earliest,the highly and over paid “professionals” at NTMA will be required.One would think,that the absence for a few years from the markets of the NTMA would render these cutting edge commercial skills blunt,making significant salary and bonus cuts a reality.
NAMA most likely will want to review and screen the applicants in its hostage to fortune effort,some new financial statements for them to review and alalyse,happy days at NAMA,this is apparently all they do.So bring in some new paperwork and tax returns and pass it around,give it a good sniff.Who exactly is going to qualify,are NAMA or NTMA employees prohibited,other public sector workers ?
Is something really better than nothing,has NAMA come to this where people are willing to applaud any effort,not matter how have witted it is?
Here in the link to the reference to D of F,sorry was mobile this morning,this appears to be at odds with numerous public statements by Corrigan at NTMA,who is on 500,000 a year,his skill set must be getting a bit rusty,why is he still hanging around,who needs him until 2014.
“Return to sovereign debt markets by 2014.”
Click to access finstratstateng.pdf
“The NTMA says it hopes to borrow money for short periods in the middle of this year and sell longer-term bonds at the end of 2012.”
http://www.rte.ie/news/2012/0113/ntma-business.html
If anyone at NAMA,had a iota of commercial sense it would stay away from direct involvement in the housing market.They are going to be perceived as NAMA borrowers in NAMA houses and if it goes wrong,they will rue the day they ever got involved.The downside reputation risk,far outweighs any perceived benefits.The associated costs and nonsense here,benefiting estate agents and valuers is very questionable and in direct contrast to the ‘competition’.
From an objective, business perspective this is NOT a commercial decision,NAMA will lose money when you calculate the time and resources dedicated to such a small time scheme.So much for being a commercial enterprise,or is that just a smokescreen to justify above market salaries for below par employees and senior executives.
IFG that little shop with the deadbeat chairman Joe Moran,currently in the news for Manor Park choking and stiffing its bankers,is the competition.In a presentation,by Joe one of the slides was aptly titled “Big Black Hole” maybe Joe can expand on that with his bankers.Anyone,getting into this scheme is advised to take a look at IFG’s itsy bitsy balance sheet.
They have capped ‘costs’ at 0.9 to be paid from interest earned on the hold back.So 200,000 PP fee’s/cost of 1,800.The most striking differences are that NO re-sale has to occur,its open to investors,changes in value are based on CSO index.
Click to access HPP%20Plan%20brochure%20-%202011-11-17.pdf
http://www.ifg.ie/Content/Libraries/Downloads/Joe_Moran_-_IFG_SSAS_-_A_Case_for_Self-Directed_Pensions.sflb.ashx
@John, there is an update to the NAMA product launch on Tuesday with respect to IFG. It seems that it hasn’t yet sold any of its product and expects to launch it into the market in June 2012.
https://namawinelake.wordpress.com/2012/05/08/nama-formally-launches-negative-equity-mortgages-today/
@NWL thanks as always,great scoop on other post,so NAMA has early mover advantage here over the ahem ‘competition’!
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