Worth the investment?

Address:143 Hardwicke, North Brunswick Street, Dublin 7.

Agent:Wyse Estate Agents.

Property:one-bedroom second floor apartment with an asking price of €295,000.

Landscape:located off Blackhall Place, this apartment is in striking distance of the city centre and is about a three-minute walk to the Luas stop at Smithfield.

The redbrick four-storey development of 200-odd apartments dates from the early 1990s.

Features:this 43sq m (458sq ft) apartment is in good letting condition.

Accommodation includes an entrance hall, livingroom, kitchen with modern fitted units and a double bedroom with fitted wardrobes. The apartment also has a secure car-parking space.

How much for an investor? If you were an investor you could borrow 90 per cent (or €265,500) at a tracker rate of 4.9 per cent with Permanent TSB which would cost €20,851 a year over 20 years.

The figure on an interest-only mortgage would be €13,010 a year. Stamp duty for an investor would be 5 per cent or €14,750.

How much for a residential buyer?A 92 per cent (€271,400) mortgage over 20 years would cost €19,908 a year on a one-year Bank of Scotland discount tracker of 4.1 per cent.

Potential:it should fetch a rent of around €1,000-€1,100 a month, according to the agent.

Verdict:going on a rental income of €10,000 a year (taking into account a service charge of €1,000 and other outlays), the property would have a yield of 3.39 per cent. The annual shortfall on an annuity mortgage would be €10,851 and the shortfall on an interest-only mortgage would be €3,010.

Calculations by Simply Mortgages