Boom-time investment properties plunge in value
THE value of two investment properties in Ireland and a holiday home in Spain owned by Sean FitzPatrick and his wife Catriona slumped alarmingly during the housing crash.
All of the properties were bought during the boom years when there was steady growth in property prices.
However, now they are worth a fraction of their purchase costs.
The most expensive of these, an apartment at Station Road in Killiney, Co Dublin, cost the couple €2.66m when they originally bought it.
Earlier this year, it was re-valued at just €850,000, a decline of more than €1.8m.
Another investment property, an apartment in Smithfield, not far from the Four Courts in central Dublin, was bought by the couple for €855,000.
Its value has since almost halved and the apartment is now thought to be worth just €440,000.
Mortgage firm Haven is owed €1.75m in relation to the two properties.
The FitzPatricks' Spanish holiday home in San Pedro, Marbella, was purchased for €438,000 in June 2005 and is mortgage free.
However, its value has also dropped dramatically and it is said to be worth just €250,000.
Mr FitzPatrick's creditors are only entitled to half of the value of these properties as the rest is owned by his wife and her portion cannot be touched.
The couple are also the joint owners of their family home, Camaderry, on Whitshed Road in Greystones, Co Wicklow.
This is valued at €1.5m, half of which is now due to creditors.
They are also the joint owners of a chalet-type house, valued at €550,000, at Meadow Gardens in Greystones.
Again, only half of this value can be given to creditors.
It remains to be seen whether the court official dispersing Mr FitzPatrick's assets to his creditors comes to an arrangement allowing for the sale of the properties.
Prior to becoming bankrupt, Mr FitzPatrick offered to sell his half share in the couple's home to his wife and disperse the proceeds to his creditors.
The proposal was part of a scheme of arrangement drafted by Mr FitzPatrick's lawyers in an attempt to avoid bankruptcy.
However, it was rejected by his main creditor, Anglo Irish Bank.