Worth the investment?

The address: 38 Tymon Farm, Tallaght, Dublin 24.

The agent: Sherry FitzGerald Lewis Beirne.

The property: three-bed penthouse for €395,000.

The look: three-year-old low rise 40-unit apartment scheme behind security gates.

The landscape: close to the M50 and overlooking Tymon Park, a green belt of over 300 acres, and beside the National Basketball Arena.

The features: originally a four-bedroom penthouse, it has been converted to a three-bed by its current owners. This stylish penthouse is a generous 127sq m (1,368sq ft), with a balcony and views over Tymon Park. It has three double bedrooms, fitted wardrobes, and a main bedroom en suite and walk-in wardrobe. The kitchen has cherrywood units, and an American double door fridge.

There are two designated car-parking spaces. The development has communal gardens.

How much for the investor: over 25 years on an 85 per cent mortgage at a standard variable buy-to-let rate of 3.95 per cent (APR 4.02 per cent), the repayments would be €1,759 per month. With an Interest-only mortgage the monthly repayments would be €1,105 per month.

How much to buy? The repayments on a 92 per cent mortgage at AIB's one-year fixed new business rate of 3.19 per cent (APR 3.75 per cent) would be €1,435 per month.

Repayments at a standard variable rate of 3.75 per cent (APR 3.81 per cent) would be around €4.27 per €1,000 borrowed or €1,552 per month.

The potential: a three-bed penthouse of this size and quality should fetch at least €1,300 per month in rent.

The verdict: as Tallaght becomes an increasingly popular place to live, this penthouse should hold its value.

Calculations by AIB