Address:Primrose Forge, Celbridge, Co Kildare.
Agent:Coonan Real Estate Alliance.
Property:two-bedroom ground floor apartment with an asking price of €285,000.
Landscape:Primrose Forge is a new development of 16 apartments in a low-rise scheme on the Hazel Hatch Road coming to the market this week. Built on the grounds of an old forge (which has been turned into a private dwelling) the scheme is a three-minute walk to the village and a 10-minute walk to Hazel Hatch train station. Developed by Lurgeen Developments, the scheme was designed by Lucan-based Oliver Ganly Architects. Two retail units will also be developed as part of the scheme.
Features: the 59sq m (640sq ft) apartments have a traditional layout with entrance hall, two bedrooms, a livingroom and galley kitchen. Parking is at surface level and maintenance fees are likely to be in the region of €1,000 a year.
How much for an investor?Stamp duty on €285,000 will be €14,250 for investors, bringing the total acquisition cost to €299,250. An investor could raise €256,500, representing 90 per cent of purchase price. On a full payment basis this would work out as €1,497 per month over 25 years. On an interest-only basis monthly repayments would be €1,066. These figures are based on a one-year fixed rate of 4.99 per cent currently being offered by a range of banks.
How much for an owner occupier?A first-time buyer could get a 100 per cent mortgage at a tracker rate of 4.75 per cent with Ulster Bank over 35 years, which would mean a repayment of €1,393 per month. Alternatively, a 92 per cent mortgage of €262,200 with AIB fixed at 4.9 per cent for three years would cost €1,304 per month.
Potential:the rental market in Celbridge is very strong at the moment and a two-bedroom apartment should fetch a rent of around €1,050 a month, according to the agent.
Verdict:a rent of €1,050 per month would roughly represent a yield of about 4.2 per cent, which is just about reasonable in today's market. The location, however, is excellent near to the train station and is always going to be very lettable with regard to Intel and other big employers in the area.
Calculations by Simply Mortgages
