The address:Seanachaí Holiday Cottages, Pulla, An Rinn, Dungarvan, Co Waterford.
The agent:Sherry FitzGerald Reynolds.
The property:three-bedroom holiday homes priced at €309,163 due for completion early in the New Year.
The landscape:Seanachaí Holiday Cottages is a scheme of 12 semi-detached holiday homes at the gateway to the An Rinn Gaeltacht, between Dungarvan and Youghal. Houses are laid out around two courtyards and are beside the Seanachaí pub - a lively traditional-style pub with thatch roof and country kitchen restaurant. There are plans for a cultural and heritage centre at the development. Dungarvan town is 10 minutes' away as is Ardmore Beach.
The features:the 131sq m (1,410sq ft) cottages have a livingroom, double-height kitchen/dining, a utility room and three double bedrooms (one en suite). They are all fitted out to four-star Fáilte Ireland standard and come fully furnished.
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 €265,789 - would be €1,548 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,117 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €69,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn around €30,500 each. Based on AIB's one-year discount tracker rate of 4.6 per cent (APR 5.15 per cent), the loan would cost €1,478 a month for the first year. On its standard variable rate (SVR) of 5.1 per cent (APR 5.21 per cent), the monthly repayments would then be €1,577. On a 92 per cent loan the monthly repayments would be €1,360 in the first year and €1,451 based on the SVR.
Potential:the properties come with a four-year rental guarantee of €7,500 per year. In addition, the houses qualify for Section 23 holiday cottage relief. Capital allowances are expected to be in the region of 75 per cent.
Verdict:An Rinn is a popular holiday destination for both Irish and overseas holiday makers and the location close to Dungarvan and beside a traditional pub should make it all the more rentable.
Calculations by AIB
