Worth the investment?

Address: 65 The Richmond, North Brunswick Street, Dublin 7.

Agent: Wyse.

Apartment type: Two-bedroom third floor Section 23 apartment with an asking price of €300,000.

What do you get? Number 65 has 63 sq m (678 sq ft) of living space and will be sold fully furnished. It has two bedrooms with built-in wardrobes, a bright livingroom with doors to a balcony, and a modern kitchen with fitted units, cooker, hob, washing machine and fridge. The apartment also has a bathroom and an entrance hall with intercom. The complex, built seven years ago, comprises 249 units with communal landscaped grounds with a tennis court. A secure car-parking space also comes with the apartment.

Where? Situated a minute from Smithfield, North Brunswick Street is 10 to 15 minutes walk to the city centre. It has benefitted from the arrival of the Luas. Smithfield stop is a three-minute walk from the apartment.

What will it cost an investor to buy? If this was the first investment property the maximum that AIB would loan would be around 85 per cent of the value or €255,000. Otherwise, if the investor has an investment property mortgaged with the bank already, the combined value of the properties would be looked at. Based on an 85 per cent loan over 25 years, the monthly repayments would be around €1,303.05 per month based on a standard variable buy-to-let rate of 3.7 per cent. On an interest-only loan you are looking at around €786.79 per month.

What will it cost to buy? Ninety-two per cent finance would require equity input of €276,000. On a 92 per cent mortgage at a standard variable rate of 3.3 per cent, the repayments would be €1,106.76 per month over 35 years. On a tracker product at 3.1 per cent, the repayments would be around €1,076 per month over 35 years. A one-year fixed rate, currently 2.75 per cent, is very popular and means that repayments in the first year would be around €1,023.96 for this mortgage.

Single income required: A first-time buyer would require a salary of €60,000 to fund this mortgage over 35 years.

Joint income required: A couple would require a combined income of around €76,000 (approximately €40,000 and €36,000) to fund this mortgage over 35 years.

Stamp duty required: None for a first-time buyer but €15,000 for investors and others.

Solicitors fees: Traditionally around 1 per cent of the purchase price plus land registry fees and VAT. However, some solicitors are willing to negotiate a fixed fee.

Potential: Residential schemes with Section 23 tax relief attract those seeking a tax shelter for rental income. The relief on this scheme would be to the value of €103,000.

Verdict: Smithfield has been boosted with the arrival of the Luas, enhancing the area's rentability. The apartment is earning €1,100 a month for its owner and capital appreciation has been reasonable in the area. When apartments here were launched seven year's ago they went for around £95,000 (€120,650), according to the agent.

Mortgage calculations by AIB Mortgages