The address:206 Killester Avenue, Killester, Dublin 5.
The agent:Sherry FitzGerald.
The property:a two-bedroom end-of-terrace former corporation house with an asking price of €420,000.
The landscape:located just off the Malahide Road, the 1950s house is in striking distance of Killester Dart station and beside the QBC on the Malahide Road.
The features:the 63sq m (680sq ft) house was given a major overhaul last year and comes to the market in good nick. It has a large kitchen/diningroom running the width of the house to the rear and a bright livingroom to the front.
The front drive has parking for two cars and there is side access to the rear garden which is laid out in lawn and deck.
How much for an investor to buy?At Bank of Ireland's investment mortgage rate of 5.1 per cent APR, the monthly repayment will start out at €2,184.84 over 25 years, based on a loan of 90 per cent of the asking price, or €378,000.
On an interest-only basis, the maximum loan will be 85 per cent of the price, or €357,000, giving a monthly repayment of €1,456.56 in the first two years under the bank's discount tracker.
How much for a residential buyer?A first-time buyer on a 100 per cent loan on a 5 per cent rate would pay €2,356.20 a month over 25 years, based on Bank of Ireland's one-year discount tracker. A first-time buyer on a 92 per cent loan will pay €2,167.70 a month.
Potential:it should get around €1,300-€1,400 a month in rent, according to the agent.
Verdict:if the higher level of rent can be secured, interest-only investors will be able to almost cover their mortgage during the discount interest rate period of seven years.
Calculations by Bank of Ireland
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