Worth the investment

The address: 124 Forbes Quay, Grand Canal Square, Dublin 2.

The property: two-bedroom seventh floor penthouse with 92sq m (990sq ft) of space for €525,000. The high-spec unit comes with two south-facing balconies, designated underground car-parking and plenty of storage space while the management charge is €2,234.

The agent: docklands specialist Owen Reilly.

The landscape: Forbes Quay is off Sir John Rogerson’s Quay and a few minutes walk from Grand Canal Square where the new Daniel Libeskind-designed theatre is due to open on St Patrick’s Day. This stylish docklands area is a 15-minute walk from the city centre and a 10-minute walk from the Dart while there is a good range of social and leisure facilities in the Grand Canal Square area.

How much for an owner-occupier? A first-time buyer could get a 92 per cent mortgage, or €483,000, with AIB. This leaves them requiring equity of €42,000. To qualify, the household income would need to be around €105,000. On a one-year fixed rate of 2.4 per cent over 25 years monthly repayments are €2,143 while on a variable rate of 2.65 per cent they are €2,203.

How much for an investor? Stamp duty is €24,500. The maximum loan is 80 per cent of the price, or €420,000, through KBC, leaving an equity requirement of at least €129,500. At a variable rate of 4.29 per cent over 25 years monthly repayments work out at €2,627 while on a three-year fixed rate of 4.99 per cent they are €2,821.

Potential? The apartment would rent for around €2,250 a month, according to the agent.

Verdict: although in a good rental location, the penthouse suits an owner-occupier.

Calculations by Barry Sheridan, Chrome Capital, Fitzwilliam Square, Dublin 2

– Justin Comiskey