Address: The Oaks, Rockfield, Dundrum, Dublin 14.
Agent: Brock Delappe.
Apartment type: two-bed priced at €445,000.
What do you get? A 72sq m (775sq ft) apartment with a fitted kitchen, ceramic wall and floor tiling and appliances included, and a sittingroom with an elevated flame-effect fire and tiled balcony. There are fitted wardrobes in the bedrooms and a main bathroom as well as an en suite off the main bedroom. Each apartment has a designated car-parking space. The grounds have open landscaped spaces, water features and meandering pathways.
Where? There is a Luas stop in the development which is close to the M50 in the heart of revitalised Dundrum village.
How much for an Investor to buy? On a first investment property the maximum loan considered by AIB would be around 85 per cent of the value or €378,250.
If you already have an investment property mortgaged with AIB, they will look at the combined value of the properties against the overall mortgage debt required. The maximum term they consider for an investment property would be 25 years: so the monthly repayments on an annuity mortgage would be around €1,932.09 per month (based on standard variable buy-to-let rate of 3.7 per cent).
With an interest-only loan the monthly repayments are calculated by multiplying the amount of the mortgage by the interest rate and dividing by 12. In this instance, you are looking at around €1,167.07 per month assuming a loan of 85 per cent.
How much to buy: the mortgage required on a 92 per cent loan is €409,400. At a standard variable rate of 3.3 per cent, the €409,400 mortgage would cost roughly €1,642.80 per month over 35 years. The repayments on a tracker rate product at 3.1 per cent would be around €1,596.68 per month over 35 years.
On a one year fixed rate - currently 2.75 per cent - repayments in the first year would be around €1,517.61 for this mortgage.
Single income required: €90,000 to fund this mortgage over 35 years.
Joint income required: around €61,000 and €50,000 to fund this mortgage over 35 years.
Service charge: €1,200 per annum.
Stamp duty: €33,375 for investors and trader-uppers, none for first-time buyers.
Potential: the selling agent says buyers of the last block were evenly split between investors, parents buying for their children and people downsizing. With a rental return of around €1,300 per month, investors are likely to be of the cash-rich variety.
Verdict: pricey but with very few new developments coming on stream in the area and its proximity to the Luas and Dundrum Town Centre, long term appreciation looks promising. The price of a first floor unit when first built a year ago was €400,000. Now the cheapest in the development is €450,000.
- Edel Morgan
