Address: Cartrun Breac, Longford, Co Longford. Agent: Property Partners Quinn Bros. House type: Four-bed detached for €222,500.
What do you get? Around 120 sq m (1,300 sq ft) of space in a modern detached house. The livingroom opens into a large Shaker-style kitchen/diningroom through double doors. Patio doors lead out to a rear garden. Upstairs, all bedrooms have fitted wardrobes and the main is en suite. The house is wired for an alarm system and has oil-fired central heating.
Where? Launched last year, there are only a few houses left in this 54-unit development. Cartrun Breac is located off Battery Road and within walking distance of the town's centre. It is also a two-minute drive from the N4 Dublin-Sligo Road and the N5 Dublin-Castlebar road. A busy market town, Longford is around 25 miles from Mullingar and 120 miles north-west of Dublin.
The town's population (now at over 30,000) is increasing with the arrival of a number of new business to the town including Abbott Laboratories, which started operations in 2004 and is expected to bring 600 jobs to the town. Under decentralisation the prison services offices is due to move to Longford too, bringing 165 jobs to the town.
The town also benefits from rural renewal tax relief. Owner-occupiers can claim significant allowances against all taxable income including PAYE over a 10-year period. Investors receive relief against all rental income in the Republic.
What will it cost an investor to buy? Based on an 80 per cent mortgage at a tracker rate of 3.3 per cent, the monthly repayment is €1,012 over 20 years and €870 over 25 years. Repayments on an interest-only mortgage at 75 per cent of the property value would be €459 for the first 10 years of a 20-year loan.
What will it cost to buy? In the case of the 90 per cent mortgage based on a tracker rate of 3.3 per cent, the monthly repayment is €1,139 over 20 years and €979 over 25 years.
Single income required: On a 90 per cent loan a single person would need to earn around €45,000 (a single person can borrow up to 4.5 times their income) assuming no other loans.
Joint income required: €55,000 (the lending rate is calculated on 3.75 times income).
Stamp duty: None for first-time owner-occupiers, €8,900 for investors.
Potential: Rental return in the Longford area for a four-bed house is around €750 to €800 per month.
The shortfall on an 80 per cent investment mortgage over 20 years is over €260 per month with a surplus of €291 on an interest-only 75 per cent mortgage.
Verdict: A busy provincial town, Longford is experiencing a significant population influx, which bodes well for rentability. Capital appreciation has been good in recent times with units in Cartrun Breac increasing by over 10 per cent since its launch in autumn 2004, according to Jonathan Quinn.
Mortgage calculations by Bank of Ireland mortgages
