The address:61 Cork Street, Dublin 8.
The agent:Douglas Newman Good.
The property:two-bedroom penthouse apartment for €550,000.
The landscape:located on Cork Street, this apartment has views across the southside as far as the Dublin mountains.
The features:this 62sq m (670sq ft) apartment is fitted to a high standard with wooden floors throughout and a modern bathroom. It has a wraparound south-facing balcony, which is around 45sq m (487sq ft), and an underground car-parking space.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 4.6 per cent, the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €467,500 - would be €2,623 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,792 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €132,500 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn around €70,000 each. Based on AIB's one-year discount tracker rate of 4.1 per cent, the loan would cost €2,464 a month for the first year. On its standard variable rate (SVR) of 4.6 per cent, the repayments would then be €2,629. On a 92 per cent loan of €506,000, the repayments would be €2,267 in the first year and €2,419 based on the SVR.
Potential:this apartment should fetch around €1,500 a month in rent.
Verdict:the property is designed for an investor who is prepared to wait for capital appreciation and is not relying completely on rental income to fund the mortgage.
Calculations by AIB
