The address: 123a, North Strand Road, North Strand, Dublin 1.
The property: block of apartments being sold on the instructions of a receiver for €465,000. The block includes three two-bedroom apartments – each with about 65sq m (700sq ft) of space – and a roof terrace. The block is about four years old but does not have car-parking.
The agent: Sherry FitzGerald.
The landscape: A short walk to the city centre, IFSC, Connolly Station and Croke Park, the apartment block offers easy access to the city while also being on a main route out of the capital.
How much for an owner-occupier? Assuming that an owner-occupier lives in one of the units and rents out the other two, a first-time buyer could get a 92 per cent mortgage, or €427,800, with AIB. To qualify, the household income would need to be around €75,000 but AIB won’t take any rental income into account. At a variable rate of 2.99 per cent over 20 years, monthly repayments work out at €2,370.01 and at €2,023.50 over 25 years.
How much for an investor? An investor could get a maximum loan of 75 per cent of the asking price, or €348,750, through AIB. Stamp duty is €23,800. This means an investor would require equity of at least €140,050. At a standard variable rate of 4.2 per cent, monthly repayments work out at €2,148.30 over 20 years and €1,876.28 over 25 years.
Potential? The apartments would rent for between €900 and €1,000 a month, according to the agent.
Verdict: a potentially interesting proposition for either an owner-occupier or an investor.
Calculations by Keith Finn, Simply Money
– Justin Comiskey
