The address:Apartment 42, Block A2, Belgrove Park, Clontarf, Dublin 3.
The agent:Gunne Residential.
The property:two-bed ground floor apartment for €470,000.
The landscape:off Mount Prospect Avenue, within easy walking distance of all the amenties of Clontarf.
The features:this 65sq m (700sq ft) apartment in a gated development has an entrance hall with three storage presses, a lounge/diningroom with corner picture windows and an east-facing balcony and a Junckers floor. It has an integrated cherry Shaker-style kitchen and two bedrooms, both with built-in wardrobes, the second being a small double. There is a designated car-parking space, stairs and lift to the underground car-park. The service charge is €1,600 per annum.
How much for an investor to buy?The repayments on an 85 per cent loan over 25 years at AIB's buy-to-let tracker rate of 4.69 APR would be €2,241 per month. On an interest-only loan at the same tracker rate, the repayments would be €1,530 per month.
How much for a residential buyer?At 92 per cent of the property price, the repayments on a one-year discounted tracker rate of 4.63 per cent would be €1,937 per month. At a standard variable rate of 4.69 per cent APR, the repayment would be €2,067 per month.
A single first-time buyer would require a salary of €103,000 to fund this mortgage over 35 years. A couple would require minimum incomes of €55,000 each to fund this mortgage over 35 years.
Potential: this apartment would fetch a rent of around €1,200 per month.
Verdict: six interest rate rises have meant that even the interest-only mortgage repayments on an 85 per cent investor loan would exceed the rental return by an estimated €330 per month.
Calculations by AIB
- Edel Morgan
