NAMA reaches deals on 32 properties under 80:20 scheme
TOXIC debt agency NAMA is close to selling 32 properties as part of its negative equity scheme.
However, a large number of buyers have not taken up an incentive offer that protects them against price falls.
The new deal, which has been developed by the State's bad bank to protect buyers from negative equity in any price plunge, is restricted to first-time buyers and movers. Investors will not be offered the deal.
Called the 80:20 Deferred Payment Scheme, it was only launched at the start of this month.
Under the deal, NAMA sets aside 20pc of the selling price for five years.
After that time, if the value of the property falls by anything up to 20pc, the buyer will have a corresponding amount knocked from their mortgage.
Some 16 houses have been sold and reservations have been placed on another 16 houses.
However, most of the buyers in the most-sought after scheme in Meath have not taken up the incentive that would see them get back 20pc of the sales price if property prices collapse.
This is because they are either investors who are not entitled to sign up for the 80:20 price-protection scheme, or are cash buyers who have decided that prices are unlikely to fall much further, sources close to NAMA said.
Most of the units sold at Loughmore Square, Kileen Castle, Dunshaughlin, Co Meath, have been bought by people who did not feel the need to sign up for the price-fall protection offer.
Many of the buyers are people who are trading down.
The Kileen Castle houses are near the castle, which has a Jack Nicklaus-designed golf course in its grounds.
NAMA chairman Frank Daly said yesterday: "Early indications suggest (the scheme) has been well received, with 16 units sold and reservations placed on another 16 of the 115 houses in the pilot phase.
"The value of these transactions generated in the two weeks since launch is €8.4m."
Meanwhile, a new report warns that house prices could fall another 25pc but despite this it is a good time to buy.
Even if prices do fall further, it is rational for consumers to buy now, an analysis of the residential property market from NCB Stockbrokers economist Brian Devine has found.
See Business week