Two weeks ago I wrote to NAMA to offer my apartment to them for long-term economic value. Like hundreds of thousands of young people, I am now in negative equity and am facing the spectre of debt deflation – a falling income with rising debt repayments. See my letter and the NAMA response below.

 

National Asset Management Agency (NAMA)
c/o Dr Michael J Somers
NTMA
Grand Canal Street
Dublin 2

 

Friday, 11 September 2009

 

Re: Offer to sell my apartment

 

Dear NAMA

 

I would like to offer you the opportunity to purchase my apartment. I bought it in 2004 for €350k. In 2007, it was valued at €500k by a reputable national estate agency. Allowing for a 50% fall from peak property prices it is now worth about €250k.

 

Using the formula outlined by your chief valuer at to the Joint Oireachtas Committee on Finance, I estimate its Long-Term Economic Value (LTEV) to be €420k. I would be willing to sell my apartment to NAMA for this price.

 

It would allow me to pay off my mortgage and car loan thus satisfying the banks and would leave me with a small deposit which I could use to buy back my apartment with a mortgage I can better afford.

 

I look forward, anxiously, to your reply

 

Yours sincerely

 

Leo Varadkar TD

 

I got the response last week, which is below or available from this link