The address:Corranroo Cottage, the Burren, Co Clare.
The agent:Sherry Fitzgerald Farrell.
The property:three-bedroom traditional cottage with adjoining three-bedroom chalet with a price tag of €850,000.
The landscape:this picture postcard thatched cottage is two miles outside the desirable village of Kinvara. It has great views of the Burren and full tide brings the sea right up to the property's stone wall.
The features:the cottage has been beautifully renovated and is brimming with rustic charm. A spacious livingroom has tiled floors and an exposed timber ceiling. A traditional kitchen has an Aga, blue Shaker-style units and a tiled floor.
Three bedrooms are found in a modern extension and a further three bedrooms in an adjoining chalet.
How much for an investor to buy?At Bank of Ireland's investment tracker mortgage rate of 4.8 per cent APR, the monthly repayments will start out at €4,323 over 25 years, based on the maximum loan of 90 per cent of the asking price, or €765,000.
On an interest-only basis, the maximum loan will be 85 per cent of the price, or €722,500, giving a monthly repayment of €2,861 in the first seven years under the bank's investment tracker.
How much for a residential buyer?A residential buyer opting for a 92 per cent loan would pay €4,450 a month over 25 years, based on Bank of Ireland's tracker.
Potential:this cottage could pull in a weekly rent of up to €800 during the peak holiday season and around €300-plus in the off season.
Verdict:with the right marketing strategy it is possible that the cottage could be let for up to 30 weeks of the year. Still going on the above figures, an investor with an interest-only mortgage would not come close to covering the repayments. The property is more suited to a buyer looking for a rural retreat, which could earn a bit of cash when it's not in use.
Calculations by Bank of Ireland
