Ireland is going through the same de-leveraging process as the US, while Chris Hunter looks for a house to rent.
"House prices here in Ireland are still too high," judged our man on the scene. Chris is our main man at the family office - where our own family money is managed.
"Everything is still much too expensive to buy. The prices don't really make sense when you compare them to the rents. I found a beautiful cottage, with direct access to the beach. It's lovely. It has whitewashed stone on the outside with a real thatched roof. On the inside, it has been completely renovated and modernized, but in very good style. Three bedrooms. Idyllic setting. Just what I was looking for.
"If that house were put on the market, the asking price would probably be about 400,000 euros. But I can rent the place for only 700 a month. It's crazy. Prices probably have a lot further to fall."
Until next time,
Bill Bonner
for The Daily Reckoning Australia
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About the Author
Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Comment by Online Business Simulation on 25 October 2009:
It would be nice to see statistics about the average rate of rent vs cost of housing throughout Europe before and after the recent crisis.
Comment by MikeinOZ on 25 October 2009:
Just moved to Australia from Canada about 7 months ago, I seen what happend in Canada first hand as I was trying to sell a house there and the Global Credit Crisis hit. I feel the same way about the housing in Australia. Rent is too high. Houses cost too much to buy. I have a fair share of money in the bank and I am waiting for the "correction" to take place down under.
When it does a lot of people will be hurting, people that are too overdrawn with the bank, and pinning a lot on hope.
Speculation and "too good" news from the markets around the world are preying on people with too mcuh to lose.
Comment by Pete on 26 October 2009:
MickeinOZ:
There will come a point when even the best 'news' won't affect the markets. That point will come when there is a critical mass of built-up downward pressure. Every day it just builds up more and more...