Scenario 1:
The Government takes on developer loans; Irish banks get cash and start ... lending money to house buyers, who get 90% mortgages and buy house(s). A new property boom starts and in five years time with back in a familiar place with X billion in bad property loans - albeit bad mortgages, rather than developer loans - but more debt none the less
Scenario 2:
Banks will have to repay international lenders and bond holders with the money they receive from the Government. With jobs losses, increased taxation and a possible NAMA levy, housing finance availability will be reduced and fewer people will be in a position to take out mortgage. Although it may be a slow road back to recovery this should help and result in stabilising the property market.
Have your Say
- Will NAMA just reflate the bubble? Or will it stabilise the property market?
- Should we support or reject NAMA?
