The address: Apt 2, 16 Westmoreland Street, Dublin 2.
The property: one-bedroom apartment on second floor of period building for €150,000. It has 44sq m (474sq ft) of space, high ceilings with coving, sash windows, a modern kitchen, good internal layout and there is no annual management charge. The livingroom faces the street and the bedroom to the rear.
The agent:Owen Reilly.
The landscape:in the heart of the city centre and a short walk to a vast selection of retail, social and transport facilities – city living doesn't come any more central than this.
How much for an owner-occupier?A first-time buyer could secure a 92 per cent mortgage, or €138,000, through AIB, which leaves them requiring equity of at least €12,000. To qualify, the household income would need to be around €50,000. On a two-year fixed rate of 2.8 per cent over 25 years, monthly repayments work out at €640 and, at a three-year fixed rate of 3.19 per cent, monthly repayments are €668.
How much for an investor?An investor could get a maximum loan of 85 per cent, or €127,500 through ICS (this would be available to an experienced investor with three or more properties and strong independent residual income). Stamp duty is €1,750. This leaves an investor requiring equity of at least €20,750. At a two-year fixed rate of 4.8 per cent over 25 years, monthly repayments work at €791. At a variable rate of 4.45 per cent, repayments work out at €763.
Potential?The apartment would rent for €900 a month, according to the agent.
Verdict: assuming rent of €900 a month, the apartment would return a yield of 7 per cent and, given its location. suits an investor.
Calculations by Barry Sheridan, Chrome Capital, Fitzwilliam Square, Dublin 2
– Justin Comiskey
