Just for a moment, imagine yourself buying a house in an affluent suburb of South Dublin. Although it’s not a new house, you pay €740,000 for this property. It’s a bit of a doer-upper but given its prime location you feel it could be worth a lot more in time after some refurbishments and a bit of TLC.

Imagine then, after just two years in the house, that the property market in Dublin begins to weaken. Sensing an opportunity, a property developer decides to make you an offer for the house. However, their offer is only €734,000 – less than you invested just two years ago.