A house that is worth the money
The address: 42 Watson Drive, Killiney, Co Dublin.
The property: extended four-bed family semi for €590,000. It could do with some redecoration, has 136sq m (1,464sq ft) of space and potential to extend to the rear.
The agent: Finnegan Menton.
The landscape: Watson Drive is off Church Road and is close to Killiney shopping centre, bus routes, the Dart, soon-to-open Luas at Cherrywood, a large number of schools and leisure facilities.
How much for an owner-occupier? A first-time buyer could get a mortgage of up to 92 per cent, or €542,800, at a rate of 2.4 per cent fixed for one year with AIB over 35 years. This would mean monthly repayments of €1,910.65. On a variable rate of 2.9 per cent monthly repayments are €2,057.21. These figures exclude mortgage interest relief.
How much for an investor? Stamp duty on €590,000 is €32,550, so the total cost for investors would be €622,550. Based on a monthly rent of €1,600, this would give a yield of 3.1 per cent. An investor could raise €472,000, or 80 per cent of purchase price, and on a full payment basis this works out at €2,360 a month over 25 years and €1,372.73 a month interest-only. This is based on a one-year fixed rate of 3.49 per cent with AIB.
Potential? With some minor decoration, the house could rent for around €1,600 a month, according to the agent.
Verdict? Would probably suit a first-time buyer or trader-upper.
Calculations by Simply Mortgages
- Justin Comiskey
