Looking for ... a one-bedroom apartment

This week: apartments for under €200,000 with parking in Dublin, as an investment property

Thu, Aug 28, 2014, 01:00

While property prices in Dublin 2 and Dublin 1 have sky-rocketed in the last two years, rents too have climbed substantially and demand remains extremely high for properties in the city centre, thus while double-digit returns are long gone, some one-bedroom properties remain viable investment options.

27, Trinity Plaza, Tara Street, Dublin 2
Asking price:
€160,000; Agent: Gunne; 484 sq ft with parking

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Apartment 27 is a quintessential Section 23 apartment – laminate floors, bulky storage heaters and absolutely no frills. While it is undeniably boring, it makes fora perfect investment property. Trinity Plaza was launched in November 1998, at which point one-beds were offered at between £155,000 (€197,000) and £170,000 (€216,000) and this price did not include a parking space, which cost an outlandish £30, 000 (€38,000).

This third floor one-bed with parking would have commanded as much as €254,000. Granted, at the time those prices would have come with the added benefit of the highly attractive tax breaks, but at €160,000 this apartment is undoubtedly strong value in the current market.

A recently let agreed one bed in the complex was asking €1,150 without parking, and this particular apartment could expect to rent for c. €1,250 per month. Based on a purchase price of €165,000 including purchase costs, this would equate to a gross yield of about 9.1 per cent, which is a solid return.

One of the downsides of the property is that the management charge for both the apartment and parking space amounts to €1,995 per annum and this will eat into the gross yield. While this figure may seem high, this amount is standard for a relatively small block with underground parking and elevators.The location, however, is perfect for city centre living, with Tara Street Dart station, Trinity College and the Luas Cross City extension (currently under construction) all on the doorstep.

35, New Row Place, Dublin 8
Asking price:
€130,000; Agent: Flynn; 450 sq ft with parking

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New Row Place is a development dating from c. 1998 located just off Dean Street in Dublin 8. The development, like Trinity Plaza above, was originally a Section 23 development, albeit a far less expensive one. The 16 one-bedroom units were launched at approximately £63,000 (€80,000) to £70,000 (€89,000), although these prices were most likely not including parking, as not all units appear to have the benefit of parking. The apartment is one of the cheapest currently on the market in the South City and yet enjoys a convenient location, being approximately 10 minutes from St Stephen’s Green.