The address:32 Ce Na Mara, Dock Road, Galway.
The agent:Sherry FitzGerald Kavanagh.
The property:a three-bedroom second floor apartment for €445,000.
The landscape: this attractive scheme was built in 1999 and is beside the Harbour Hotel and on Galway's busy docks. Although a quayside scheme, this apartment has only limited sea views with the most prominent view being working yards.
On the up side, despite being on the Lough Atalia side of the docks, Eyre Square and Quay Street are only a short stroll away.
The features:the 82sq m (883sq ft) apartment is in walk-in condition and has an open-plan kitchen/livingroom. Maintenance fees are €1,200 and the unit comes with one underground car-parking space. The main bedroom is en suite and the livingroom has a balcony.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 4.95 per cent, the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €375,250 - would be €2,175 a month over 25 years.
On an interest-only mortgage - based on the same rate and term - the repayments would be €1,529 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €110,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn around €59,000 each.
Based on AIB's one-year discount tracker rate of 4.35 per cent, the loan would cost €2,060 a month for the first year.
On its standard variable rate (SVR) of 4.85 per cent, the repayments would then be €2,198. On a 92 per cent loan of €409,400, the repayments would be €1,895 in the first year and €2,022 based on the standard variable rate.
Potential: this house should get around €1,200 a month in rent, says the selling agent.
Verdict: if the potential rent can be secured, interest-only investors would be over €300 shy on the monthly mortgage payments during the discount period.
Plans, however, to relocate the commercial docks and develop a marina in its place may make this unit attractive for a longterm investor.
Calculations by AIB
- Fiona Tyrrell
