Worth the investment

The address: 19 Raglan Lane, Ballsbridge, Dublin 4.

The property: four-bed mews designed by Pascal Lavin Architects for €1.5 million. Built in 2002, it has 153sq m (1,650sq ft) of space, garage, two bedrooms are en suite and there’s a large open-plan living/dining area.

The agent: Lisney.

The landscape: this mews lane is on the corner of Raglan and Elgin roads in the heart of Ballsbridge with the Four Seasons Hotel, RDS and Herbert Park a short distance away. Good retail, leisure and transport facilities are all within walking distance.

How much for an owner-occupier? An owner-occupier (non first-time buyer) could borrow up to 92 per cent of the price, or €1,380,000, with AIB leaving them requiring equity of €120,000. To qualify, a single applicant would need an income of €310,000 and two individuals require minimum incomes of €155,000 each. Non first-time buyers will also pay stamp duty of €106,250. Monthly repayments on AIB’s variable rate of 2.65 per cent (APR 2.68 per cent), would be €6,292.80 per month over 25 years and, at a two-year fixed rate of 2.8 per cent (APR 2.84 per cent), the monthly cost is €6,403.20.

How much for an investor? On a loan-to-value rate of 75 per cent, or €1,125,000, over a maximum term of 25 years with AIB, an investor would require equity input of €375,000 and stamp duty of €106,250. The lending criteria would depend on the applicant’s income and overall financial position. Based on an investment variable rate of 4.2 per cent (APR 4.27 per cent) over 20 years, the monthly repayments work out at €6,930 and at €6,052.50 over 25 years.

Potential? At the height of the boom this mews was rented at around €4,000 a month but now would make between €2,000 and €2,500 a month, according to the agent.

Verdict: suits an owner-occupier.

Calculations by Lorraine Cullen, MMPI, Donnybrook, Dublin 4

– Justin Comiskey