Saturday 10 December 2016

'We could be looking at Nama 2 in 10 years' - chairman

Published 17/12/2015 | 02:30

Frank Daly: warning about lack of supply and demand data. Photo: Chris Bellew Fennell Photography
Frank Daly: warning about lack of supply and demand data. Photo: Chris Bellew Fennell Photography

Another version of Nama may be required in a decade unless statistics on population and housing need is properly collected, its chairman Frank Daly has warned.

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Hard data on supply and demand and demographics has been "very, very absent", he told TDs and senators. "It's beginning to come. But if we don't get that right, we might be looking for a Nama 2 in 10 years' time," he said.

Nama chief executive Brendan McDonagh said more people were buying in the commuter belt around Dublin because they could not afford to buy in the capital.

He said as a result of the Central Bank's mortgage deposit rules, first-time buyers in the capital could buy up to €320,000, but not above that.

"Some schemes which were not viable 12 months ago are becoming more viable again in the commuter belts because people are beginning to commute again and buy houses in the commuter belts... because they feel they can't buy a house in Dublin and they're buying in these areas," Mr McDonagh said.

He said building costs for a house at €300,000 would include €36,000 on VAT, while the cost of construction and professional fees would be €145,000 and other costs, such as the cost of finance, would be between €85,000 to €90,000.

Nama said it had generated cash receipts of €8.8bn so far this year, which brings the total cash generated since its inception to €32.4bn. It expects to generate a surplus of about €2bn by the time it completes its work.

Earlier, Mr Daly was quizzed on the sale of Project Eagle and said he had written to former Nama adviser in Northern Ireland, Frank Cushnahan, a month ago, but had not yet received a response. He wrote to him again on Monday asking him to respond "as soon as possible".

Mr Daly said he wrote on foot of a disclosure that Mr Cushnahan helped organise a confidential meeting between the North's now former First Minister Peter Robinson and US investment firm Pimco while Mr Cushnahan was still an adviser to Nama.

Irish Independent

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