The address:48 All Hallows Square, Drumcondra, Dublin 9.
The agent:Sherry FitzGerald.
The property:a three-bedroom duplex priced at €595,000.
The landscape:built on the grounds of All Hallows College in 2002, this small and well-regarded development is off Griffith Avenue in Drumcondra, Dublin 9. There is pedestrian access onto Church Avenue leading to all the shops, restaurants, bars and services in Drumcondra.
The features:the 105sq m (1,130sq ft) duplex has a living/dining room, separate kitchen and three bedrooms (one en suite). It is in good condition and has a balcony with enough room for a small table and chairs. The unit comes with one car-parking space. Maintenance fees are around €1,200.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 5.1 per cent (APR 5.21 per cent), the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €505,750 - would be €2,979 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €2,149 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €147,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn a minimum of €69,000 each. Based on AIB's one-year discount tracker rate of 4.6 per cent (APR 4.96 per cent), the loan would cost €2,844 a month for the first year. On a 92 per cent loan the repayments would be €2,616 in the first year and €2,792 based on the SVR.
Potential:this house should get around €1,750 a month in rent.
Verdict: despite the top location and good finish of the scheme investors will not come close to clearing their mortgage repayments with the monthly rental.
Calculations by AIB
