Address:The Ferns, Foxwood, Rochestown, Cork.

Agent:Sherry FitzGerald New Homes.

Property:two-bedroom townhouse with an asking price of €345,000.

Landscape:this new scheme is being developed by O'Brien and O'Flynn. The 16-unit development is off Coach Hill in the desirable Rochestown neighbourhood and was launched in October 2007. The first purchasers are due to move in this month and the remaining units should be ready to hand over in two months.

Features:the two-bedroom units have 83sq m (900sq ft). Finish is impressive at The Ferns with good quality high gloss kitchens with walnut detail and smart sliding wardrobes in the kitchen. There is car-parking to the front of the house and the back garden is laid out in lawn.

How much for an investor to buy?Stamp duty on €345,000 will be €5,400 for investors, making the total cost for investors €360,400. An investor could raise €310,500 - representing 90 per cent of purchase price. On a full payment basis this would work out as €1,794 per month over 25 years and €1,265 per month on an interest-only basis. These figures are based on a one or two-year fixed rate of 4.89 per cent with Permanent TSB.

How much for a residential buyer?As a first-time buyer you could get a 100 per cent mortgage at a one-year fixed rate of 4.75 per cent with Bank of Scotland over 35 years. This mean a repayment of €1,687 per month. Most lenders have now ceased lending 100 per cent mortgages for all but a few occupations. Alternatively, a 95 per cent mortgage of €327,750 with a number of different lenders on a one-year fixed of 4.89 per cent would cost €1,632 per month over 35 years.

Potential:it should fetch a rent of around €1,200 a month, according to the agent.

Verdict:a rent of €1,200 would represent a yield of around 4 per cent, which is reasonable but not fantastic.

Calculations by Simply Mortgages