Worth the investment

The address: Rosses Court, Mellifont Avenue, Dún Laoghaire, Co Dublin.

The property: fourth floor two-bedroom apartment with 85sq m (920sq ft) of space for €345,000 – the price has recently been reduced from €425,000. It has a designated car-parking space, a basement storage room and a stand-out south-facing living/dining room. The scheme was built in 1985, the annual service charge is €1,880 and the decor is a little dated. However, there are great views over Dublin Bay towards Sandycove.

The agent: Sherry FitzGerald.

The landscape: the apartment is a stone’s throw from the seafront and the East Pier. Mellifont Avenue is towards the People’s Park end of the town while shopping, restaurants, recreational facilities, two Dart stations and bus routes are all within easy walking distance. Dún Laoghaire is a much-improved town with a lively festival scene and improving public facilities.

How much for an owner-occupier? With AIB, a first-time buyer could borrow 92 per cent of the price, or €317,400, leaving them requiring equity input of €27,600. To qualify, a single first-timer requires a salary of €70,000 and two individuals need minimum incomes of €30,500 to fund this mortgage over 25 years. At a one-year fixed rate of 2.4 per cent (APR 2.29 per cent), monthly repayments are around €1,406. Monthly repayments at a variable rate of 2.65 per cent (APR 2.68 per cent) are €1,447.

How much for an investor? The maximum loan considered by AIB for an investment property is 75 per cent of the value and the maximum term is 25 years. A 75 per cent mortgage of €258,750 leaves an investor requiring equity input of €86,250. Stamp duty is €15,400. At AIB’s buy-to-let variable rate of 4.2 per cent (APR 4.27 per cent), monthly repayments would be €1,594 over 20 years and €1,392 over 25 years.

Potential? The apartment would rent for around €1,300 a month, according to the agent.

Verdict: suits an owner-occupier.

Calculations by AIB

– Justin Comiskey