The address:83 Shelbourne Park, South Lotts Road, Dublin 4.
The agent:Owen Reilly
The property:two-bedroom third floor apartment with a price tag of €420,000
The landscape:this smart apartment complex is located beside Shelbourne Park Greyhound Stadium. The road is predominantly traditional redbrick terraced houses with the exception of Shelbourne Park and the landmark Gasworks residential scheme. Ringsend and Sandymount villages are in striking distance and Grand Canal Dock Dart Station is just around the corner.
The features:Laid out over 60sq m (645sq ft) this apartment has the usual open-plan living/dining/kitchen with small balcony and two bedrooms. The apartment comes with an underground parking space.
How much to buy for an investor?The maximum loan that AIB would consider for an investment property would be 85 per cent of the value, with up to 100 per cent considered for portfolio investors. At AIB's buy-to-let tracker rate of 5.75 per cent (5.88 APR) the repayments would be €2,238 per month over 25 years.
On an interest-only loan, the monthly repayments would be €1,711 per month
How much for an owner/occuper to buy? First-time buyers borrowing 92 per cent of the property price (€386,400) would need to be earning to €91,000 to purchase this property. A couple would need to have incomes of around €40,000 each.
On AIB's tracker rate of 5.75 per cent (APR 5.88) the repayments would be €2,133 a month. Repayments on the bank's standard variable rate of 5.5 per cent (5.62 per cent) would be €2,067.
Potential:this apartment would rent for around €1,600 a month, according to the selling agent. The annual service charge is €1,850.
Verdict:going on the above figures, investors on an interest-only mortgage will have a shortfall of just over €100, which is not bad in today's market. Like everywhere, cash is king and there is always room for negotiation.
Calculations by AIB
- Fiona Tyrrell
