The address:73 Glencarraig, Ballinode, Sligo.
The agent:Gunne Reynolds.
The property:end-of terrace three-bedroom house with an asking price of €290,000.
The landscape:to the north of Sligo town, Glencarraig is a mature housing estate of 100-odd units across the road from Sligo IT and Sligo General Hospital and close to the Brewery Pub.
The features:a traditional family house, number 73 has a lounge to the front with timber floors and a bay window. To the rear is a kitchen/diner with tiled floors. Upstairs all the bedrooms have timber floors and the main bedroom is en suite. There is parking to the front and a side entrance.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 5.1 per cent (APR 5.21 per cent), the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €246,500 - would be €1,452 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,048 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €62,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn €30,000 each to fund this mortgage. Based on AIB's one-year discount tracker rate of 4.6 per cent (APR 5.15 per cent), the loan would cost €1,386 a month for the first year. On its standard variable rate (SVR) of 5.25 per cent (APR 5.36 per cent), the monthly repayments would then be €1,505. On a 92 per cent loan, the repayments would be €1,275 a month in the first year and €1,385 based on the SVR.
Potential:the house could make around €800 a month if rented to a family or €1,000 if rented to students, according to the selling agent.
Verdict:the house is in a great rental location near the hospital and Sligo IT, and is rented out and in good condition.
Calculations by AIB
- Fiona Tyrrell
