Worth The Investment

The address:7 Mellifont Avenue, Dún Laoghaire, Co Dublin.

The property:spacious two-storey over basement period house in three units for €825,000. It has 216sq m (2,335sq ft) of space, four reception rooms, seven bedrooms and garage with rear access. There are lots of pretty period details and it is in good condition. It would cost €50,000 to €100,000 to convert it back to a family home, according to the agent.

The agent:Sherry FitzGerald.

The landscape:in a quiet location within easy walking distance of the Dart, bus routes and the centre of Dún Laoghaire. Easy access to the People's Park, the seafront, and harbour area. The town's retail, leisure and social scenes have come on greatly in recent years. Settled and mature location.

How much for an owner-occupier?A first-time buyer could get a 92 per cent mortgage, or €759,000, with AIB, leaving them requiring equity input of at least €66,000. A single first-timer would require a salary of €195,000 to qualify, and to fund this mortgage over 25 years, while two individuals would require minimum incomes of €88,000 each. At a one-year fixed rate of 3.59 per cent (APR 3.33 per cent), monthly repayments are €4,433 over 20 years and €3,833 over 25 years. At a variable rate of 3.49 per cent (APR 3.54 per cent), repayments are €4,395 over 20 years and €3,795 over 25 years.

How much for an investor?Stamp duty is €49,000. The maximum loan AIB would consider for an investment property is typically 75 per cent of the value, or €618,750, over 25 years. This leaves an investor requiring equity of at least €255,250. At a variable rate of 4.2 per cent (APR 4.27 per cent), the monthly repayments are €3,812 over 20 years and €3,329 over 25 years.

Potential?Fully rented, the house would make around €3,600 a month, or around €1,200 a month per unit, according to the agent.

Verdict:suits an investor or someone looking for a home and income.

Calculations by AIB