One in four Irish households will be in negative equity by the end of 2010 if property prices continue to slide. Irish homes have lost 30 per cent of their value over the past two years and some commentators speculate this could become minus 50 per cent in twelve months time.
Today, stockbroker, Goodbody, estimates the average household has debts Euro43,000 greater than the value of their home.
Unfazed by Ireland's debt burden, some investors believe profits can be made, because falling prices have improved yields. British property company, Assetz, says “Ireland is now in a prime position for a carefully selected property investment.”
It is marketing Knocktopher Abbey which has been converted into holiday apartments. There are also cottages for sale in its 17 acre grounds. Here, investors are promised rental returns of 6 per cent net for the next ten years by its operator, Seasons. They can use their property for four weeks each year. Prices from euro209,000.
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