The address:69 Millennium Tower, Ringsend, Dublin 4
The agent:Gunne
The property:two bed 11th floor apartment for €730,000
The landscape:overlooking Grand Canal Dock which has become a popular living, socialising and working quarter.
The features:set in Dublin's tallest apartment block, this 79sq m (850sq ft) development has two bedrooms with built-in wardrobes, one with a balcony with great views of the city. The living/diningroom has floor to ceiling windows. Car space in underground car park.
How much for an investment?With stamp duty at 9 per cent and legal fees at 0.5 per cent, the acquisition cost is €800,117.
On a 90 per cent mortgage at a PTSB .90 per cent tracker rate of 4.15 per cent over 20 years the repayments would be €48,401 a year. On an interest only loan they would be €29,565. The annual rental return would be €17,000 taking into account one month's costs and one month's void.
The shortfall on an annuity mortgage would be €31,401 per annum. On an interest only mortgage it would be €12,565. This gives a yield of 2.3 per cent. To break even the mortgage would need to be 32 per cent of the property value.
How much for a residential buyer?On a 92 per cent IBOSI discount tracker rate of 3.95 per cent over 20 years, the annual mortgage repayments would be €48,625. On an interest only mortgage it would be €26,528.
Potential:The agent says this apartment should fetch a rent of €1,700 per month
Verdict:a fashionable development but the high price and rental return is likely to scare off all but the seriously cash rich investor who is willing to hold on to it in the hope it will reap long term gains.
Calculations carried out by Simply Mortgages
- Edel Morgan
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