WORTH THE INVESTMENT

Address: Riverchapel Wood, Courtown, Co Wexford.

Agent: Hooke & MacDonald.

House type: three-bed semi-detached house for €171,950.

What do you get: three-bed 96sq m (1,030sq ft) house in scheme of 189 houses and bungalows by Pat Neville developments about three miles from Gorey. Standard features include oil-fired central heating, a feature fireplace, fitted wardrobes in all bedrooms, an en suite main bedroom, fitted kitchen units, double glazing, and private fenced back gardens.

Where? The development is within a short drive of the N11 and Dublin is about 55 miles away. Courtown and its famous beaches are within easy reach offering a good range of water-based activities. The site is under a mile from Courtown harbour and beach.

How much for an investor: on a first investment property the maximum loan is 85 per cent of the value and the maximum period is 25 years. If an investor has another mortgaged investment property, AIB looks at the combined value of the properties against the overall mortgage debt required subject to the loan-to-value of the portfolio not exceeding 75 per cent. The standard variable buy-to-let rate for a first or second property is 3.5 per cent. At this rate, over 25 years the loan repayment would be €730 per month. The repayments on an interest-only loan would be €426 per month assuming an 85 per cent mortgage.

How much to buy: a first-time buyer taking out a 92 per cent mortgage at a standard variable rate of 3.3 per cent will repay €634 per month over 35 years. If they chose a tracker rate at 3.25 per cent, the repayments would be €630 per month over 35 years. A year fixed rate currently at 2.75 per cent will mean repayments in the first year would be €586 for this mortgage.

Single income required: €36,000 to fund this mortgage over 35 years.

Joint Income required: €20,000 each to fund this mortgage over 35 years.

Potential: with its location on the edge of Courtown, some viewers will be considering these as holiday homes, though prices are attracting first-timers looking for an affordable first step on the property ladder.

If buying-to-let, a three-bed house has the potential to command €650 per month rent. A short term holiday let may get anywhere from €200-€500 per week, depending on the season, if properly fitted out to cater for tourists.

Verdict: under the Seaside Resort Renewal Scheme, at least 1,200 holiday homes have been built in the area so those intending to buy as a holiday let will face competition. The proximity of Gorey, a popular commuter town since the opening of the Arklow Bypass with a huge amount of land zoned for new homes, may dilute the chances of letting a property over the long term. However, for a generously proportioned three-bedroom house near the beach and Gorey and within commuting distance of Dublin, €171,950 is a good price for those looking to get a leg up on the property ladder.

Calculations by AIB