Monday 18 December 2017

NAMA sells €6m worth of houses in two weeks after guarantee

A bedroom in a three-bed house in Killeen Castle, Dunshaughlin
A bedroom in a three-bed house in Killeen Castle, Dunshaughlin
The back garden

Donal Buckley and Louise Hogan

HOUSES worth €6m, backed by NAMA's new price guarantee, have sold in just two weeks.

The price guarantee, officially called the deferred payment initiative, means that anyone who buys a house at the current price will be protected against falling into negative equity.

Under the scheme, if the price should be lower in five years' time, NAMA will ensure that the bank will write-off up to 20pc of the mortgage.

And despite some concern that the prices of homes included in the scheme were higher than comparable properties on the market, there has already been a surge in interest.

In Dublin's southside three buyers have placed deposits on four-bedroom houses being offered at Carrickmines Manor which ranged in price from €295,000 to €310,000.

Estate agent Gina Kennedy of Douglas Newman Good says that the only house remaining on her list is a three-bedroom with a €275,000 price tag.

At Killeen Castle, Co Meath as many as 17 of the 18 luxury homes on sale under the scheme went 'sale agreed' within days of coming to the market.

These homes priced at €320,000 come with three en suite bedrooms and come with the cache of being in the grounds of one of the country's upmarket golf courses.

Near Citywest, one prospective buyer has made an offer for one of the two four-bedroom houses at Browns Barn Wood in Dublin 22. These three storey stylish houses are priced at €335,000.

Initiative

In the north county Dublin village of Naul, NAMA is offering price guarantees for 29 houses out of the 76 in the development. A majority of the houses in the development have been sold including all of the three-bedroom houses but it is not clear how many have sold since the NAMA initiative.

Now the only ones remaining are two-bedroom houses priced from €175,000 and four bedroom houses priced from €285,000.

Meanwhile, rents are rising in Dublin and Cork as the number of properties available falls to their lowest level in more than three years.

The average rent nationwide now stands at €812 in the first three months of the year, according to the latest survey from property website Daft.ie.

However, economist Ronan Lyons said there was a distinctive trend between Dublin and Cork in comparison with the rest of the country.

Rental properties in Cork city commanded 5.5pc higher prices, while those in Dublin city centre areas were up 2.1pc.

Rents in Galway city were mainly stable, while prices fell in Limerick and Waterford. Throughout the rest of the country, rents fell by an average of 2.1pc.

Mr Lyons said the rent prices reflected greater demand for people to live near cities where most jobs were located.

Irish Independent

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