The address:92 Walsh Road, Drumcondra, Dublin 9. The agent:Gunne.
The property:three-bedroom end-of-terrace house with an asking price of €475,000.
The landscape:Walsh Road is off the Drumcondra Road close to Drumcondra village, the train station, Griffith Park and lots of other amenities are within walking distance. It is close to all the colleges and the city centre is in striking distance. Number 92 comes to the market in reasonable condition.
The features:the 70sq m (753sq ft) house has a ground floor extension which is home to the modern kitchen/dining area. To the front there is a livingroom. Upstairs there are three bedrooms (one en suite). The house has a good-sized rear garden with pedestrian side access.
How much for an investor to buy?At Bank of Ireland's two-year fixed business rate of 4.99 per cent (APR 5.4 per cent) the monthly repayments start out at €2,814 over 20 years, based on the maximum loan of 90 per cent of the asking price, or €427,500.
Monthly repayments will cost €2,492 if the mortgage is taken over 35 years.
On an interest-only basis (interest-only for just seven years), the maximum loan will be 85 per cent of the price, or €403,750, giving a monthly repayment of €1,759.
How much for a residential buyer?An owner-occupier opting for a 92 per cent loan would pay €2,808 a month over 20 years, based on Bank of Ireland's 4.7 per cent one-year discount tracker (APR 5 per cent). Over 35 years monthly repayments will be €2,118.
More people are going for fixed rates at the moment. On Bank of Ireland's two-year fixed rate of 4.89 per cent (APR 5.3 per cent) homeowners will pay €2,853 in monthly repayments on a 20-year mortgage and €2,169 on a 35-year mortgage.
Potential:this house would get between €1,400 and €1,600 in rental income a month, according to the selling agent.
Verdict:while the rental income will not totally cover the monthly repayments, even on an interest-only mortgage, this property may be of interest if an investor is in for the long haul looking for a property in a solid rental area.
Calculations by Bank of Ireland
