Address: 61 Chesterfield, Riverpark, Islandbridge, Dublin 8.

Agent: Lowe & Associates.

Apartment type: two-bed apartment with an asking price of €340,000.

What do you get? 56 sq m (600 sq ft) of living space on the second floor of a four-year-old development. Accommodation comprises a hallway, bright open-plan living and diningroom, a modern fitted kitchen, two double bedrooms with fitted wardrobes and a family bathroom. A balcony off the sittingroom offers lovely views over the River Liffey and the bedrooms have views over the Phoenix Park. The apartment comes with a secure underground car-parking space and access to residents' gardens. Additional disc car-parking is available on-street. There is video security intercom and the apartment has double-glazed UPVC windows.

Where? Apartment 61 is one of about 210 apartments in this three-block development on the banks of the River Liffey. There is a good mix of owner-occupiers and people renting in the complex. Chesterfield is a five-minute walk from Heuston Station and a stone's throw from the Phoenix Park.

How much for an investor? After stamp duty at 5 per cent (€20,000) and legal fees of 0.5 per cent (€2,057) are taken into account, the acquisition cost is €362,457.

On a 90 per cent mortgage at a tracker rate of 3.1 per cent over 20 years, the annual repayments would be €20,549. This represents a shortfall of €8,549 a year when rental income of €12,000 per annum (at €1,200 per month and allowing for one month's void and one month's costs) is taken into account.

The annual repayments on an interest-only mortgage would be €9,486, giving a surplus of €2,514 and a yield of 3.5 per cent.

An investor requiring payments equal to rental income on an annuity mortgage would require a 52 per cent mortgage at 3.1 per cent over 20 years.

How much to buy? With acquisition costs of €362,457, a residential buyer with a 60 per cent mortgage on a tracker rate of 2.95 per cent over 20 years will have annual repayments of €13,515 and interest-only repayments of €6,018. For a first-time buyer on a 92 per cent mortgage at a tracker rate of 3.1 per cent, the annual repayments will be €21,006, while on an interest-only mortgage they will be €9,697.

Service charge: maintenance fees in Chesterfield are €1,000.

Potential: There is a potential rental return of €1,200 per month, according to the agent, and capital appreciation has been reasonable in the area rising from €254,000 (£200,000) for a two-bedroom apartment when the scheme was first launched four years ago.

Verdict: this well-kept apartment in this pretty scheme is in a good rental area. Its proximity to the city has been greatly boosted with the arrival of the Luas system, which should help its rentability.

While a shortfall on a 90 per cent investment mortgage over 25 years of €8,549 a year may put off some investors, capital appreciation has been good. Would suit a cash-rich investor.

Calculations by Simply Mortgages