We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
NAMA HAS TODAY unveiled a pilot programme aimed at encouraging first-time buyers to enter the housing market by insulating them from the possibility of negative equity by up to 20 per cent.
The 80:20 deferred payment initiative hopes to promote the sale of domestic properties by allowing people buying properties in a limited number of locations to buy without fear that the house’s price could continue to fall.
Under the scheme, potential buyers will be asked to pay 80 per cent of the value of the home up front, including at least 10 per cent provided by means of the purchaser’s own deposit.
The remaining 20 per cent will then be due in five years’ time, but will be discounted depending on if the value of the property falls in the meantime.
For example, if a house is bought for €200,000, the purchaser would be asked to provide €20,000 themselves, and be given a mortgage initially worth €140,000 – leaving the other €40,000 to be borrowed in a second tranche in five years’ time.
If the value of the house falls to €175,000 in five years, the deferred tranche of the mortgage will be reduced to €15,000 – while if it had fallen to €160,000, there would be no second tranche to the mortgage at all.
NAMA said any mortgages issued under the scheme would, for the first five years, be based on a mortgage including the second tranche – meaning that if the value of the house falls over the first five years, they will effectively have accelerated their repayments meaning they will accrue less interest over the lifetime of the mortgage.
The pilot project is being run in co-operation with Bank of Ireland, EBS and Permanent TSB, who will issue the mortgages directly, and will only apply to properties in 12 specific developments in Dublin, Meath and Cork.
NAMA chief executive Brendan McDonagh explained that the project would ultimately mean a greater cash injection for the agency itself, while also helping it to save money on property maintenance costs and increasing occupancy in part-occupied developments.
The Society of Chartered Surveyors Ireland gave a cautious welcome to the scheme, saying it could address the low level of transactions, but waiting for examples of how the scheme unfolded before making any definite assessment.
A graphic provided by NAMA to illustrate the various scenarios under which a property’s price might increase or decrease in the next five years.
To embed this post, copy the code below on your site
How long before Sky news claim Paul Mescal as British lol
Obviously, a slow news day. Here’s a good tip to save a few euros for anyone planning to go see the new gladiator movie — DON’T!!!! basically exactly same film as the original Russell Crowe edition……. But nowhere near as good, aside from the CGI it’s rubbish
@Kevvy kerrr: How could you offer a review when it’s not out in Ireland yet?
@Patrick Kennedy: a lot of people get to see pre-screenings of it before it’s release date. People like myself who have family in the media circles or family working in the cinema etc.
@John Doe: shhhhh, let him lay his money down later this month……. Found it very lacklustre, was hoping for / expected better tbh
@Patrick Kennedy: How can you be so uninformed? You aren’t bright. The movie is literal tra$h.
@Alex: What?
@Kevvy kerrr: it wasn’t great at all, I don’t really rate your man as an actor much either, fairly disappointing to say the least.
@John Doe: absolutely nothing new in it, just a rehash with CGI bigger tigers in the arena….. have to admit I enjoyed the venom film though, that was 8/10
This is the world we live in now …. Looking like some else is a thing ;) winning 20 is a great thing and newsworthy… ah ba humbug .. well done young man.. use that wisely now, an insta career…. career in stunt-doubles ahead of ya …
@Michale Kane: think of all them ‘steamy’ scenes with the beautiful Hollywood set !! lol
@Michale Kane: Like when ya think of it for a minute….. you’d defo pay 20 quid for that experience…
3 pints? Of what? Where? €20 won’t get you 3 pints of most beers in Dublin :(
Spud heads are ten a penny in Ireland
@Fiona: ah feck, rest of my message went missing! I had added, ‘grand, soft gaze; divil of an accent, and an outstanding sense of humour, that’s your average Irish lad!
@Fiona: Happens all the time, or irritating but ya get used to it.. it takes out spaces/punctuation too, but ya can see those if look at page in a browser..
@Michale Kane: ‘it’s irritating’ I meant.. Also is trying to correct anything either..
Mescal is a very bad actor, in a very bad film
@Lefty Cries: Nonsense.
Such an honour.
Gladiator 2, the crappy movie that nobody needed. In the bin straight away.
Pablo was sexy in madalorian untill he took off his helmet very disappointed his voice was amazing the man under the mask not so much .
@Karen Marten: gets a ‘pass’ though after NARCOS……… he was brilliant in that
@Karen Marten: Hmmm, what about ‘beauty is in the eye of the beholder’ stuff .. jeez imagine someone saying that about you ? If same was said about a female actress ( see what I done there) there would be mass meltdowns and eruptions of outrage everywhere. ;)
There’s no comparison mescal to Crowe he was bloody brilliant just no dress him up he’s still not that good
@Karen Marten: Russell was fine, that’s for sure!
@Clare Power: but he s a great actor you could see it in his eyes he wasn’t just a man in a costume .
have your say