The address:Apartment 22, Dunloe Hall, 27 Merrion St, D2.
The agent:Sherry FitzGerald.
The property:one-bed for €750,000.
The landscape:Dunloe Hall comprises 25 apartments in converted Georgian buildings. Government Buildings are across the road and Grafton Street and St Stephen's Green are a short stroll away. It's an exclusive address - earlier this year a much larger three-bed apartment in Dunloe Hall was purchased by Margaret Heffernan of Dunnes Stores for €4.3 million.
The features:with 45sq m (485sq ft) number 22 is one of the smaller apartments in the development. It's third floor position, high ceilings, sash windows and great views make up for the size but new owners will need to spend some money to refurbish it. Number 22 comes with one secure underground car-parking space. Maintenance fees are €2,100 a year.
How much for an investor to buy?At Bank of Ireland's investment mortgage rate of 4.8 per cent, the monthly repayment will start out at €3,841 over 25 years, based on the maximum loan of 90 per cent of the asking price, or €675,000. On an interest-only basis, the maximum loan will be 85 per cent of the price, or €637,500, giving a monthly repayment of €2,513. The mortgage is interest-only for seven years.
How much for a residential buyer?A first-time buyer opting for a 92 per cent loan would pay €3,982 a month over 25 years, based on Bank of Ireland's two-year fixed mortgage. The rate of 4.89 per cent (APR 5.3 per cent) will roll to ECB rate plus 1.25 per cent after two years. On a 35-year mortgage on the same rate the monthly repayments would be €3,425.
Potential:this apartment would get between €2,000 and €2,200 in rent a month, according to the selling agent.
Verdict:ideally suited to a business person in need of a central Dublin base who won't be too concerned about the size of the mortgage repayments. However, the rental market is at its strongest for years so an investor could be tempted to spend some money on a high-end redecoration and go after the corporate let market.
Calculations by Bank of Ireland
