If you would like to submit a contribution to our Readers Blog section then follow this link. Be sure to include your full name, address and contact number otherwise your submission will not be considered for publication. We will contact you prior to publication.

A question of valuation

A property has two prices, the price you can get for it, or the net present value of its future cash flows.

If a €5 note was auctioned on Grafton Street and an unwise person bid it up to €20, then a surveyor would value all €5 notes as €20 notes.

Likewise if an unwise person paid €2m for a house with a net present value of €0.5m then a surveyor would value all similar houses at €2m. Almost all of the Irish banks’ reckless lending was done using surveyors valuations. These valuations were as good as money. This is the valuation error that created the property bubble and bankrupted the country.

John Corcoran


Co Dublin


Video: This chocolate facial is the perfect Easter-themed pampering

The Menu: Food news with Joe McNamee

Restaurant Review: Circa Restaurant, 90 Terenure Road North, Dublin 6w

Co-ops are good for our mental health and our community

More From The Irish Examiner