WORTH THE INVESTMENT?

Address:27 Fernleigh Grove, Castleknock, Dublin 15.

Agent:Gunne.

Property:two-bedroom first floor own-door apartment.

Landscape:Fernleigh Grove is an attractive apartment and townhouse development built around seven years ago. The relatively low-rise development is off the Carpenterstown Road in Castleknock. Coolmine train station is in walking distance (15 minutes) and the number 37 bus stop services the area. Castleknock and Blanchardstown villages are within striking distance. The M50 and N3 are also close by, allowing good access to Dublin Airport and the greater Dublin area.

Features:although the owners are renting out this apartment, it comes to the market in good condition. The 68sq m (735sq ft) apartment has an open-plan living/dining area with solid timber floor, fireplace and French doors to a good-sized balcony, attractive kitchen, two double bedrooms (one en suite) and a main bathroom. Maintenance fees are low (€500) but this does not include costs associated with bins. Parking is to the front of the apartment and is not reserved.

How much for an investor to buy?Stamp duty on €330,000 will be €14,350, making the total cost for investors €344,350. An investor could raise €297,000, which represents 90 per cent of purchase price. On a full payment basis this would work out as €1,734 per month over 25 years and €1,235 per month on an interest-only basis. These figures are based on a one-year fixed rate of 4.99 per cent with either Permanent TSB or First Active.

How much for a residential buyer?A first-time buyer may be able to get a 100 per cent mortgage at a rate of 4.75 per cent (one-year fixed) with Bank of Scotland over 35 years. This would mean a repayment of €1,613 per month. But most lenders have now ceased the 100 per cent product for all but a few occupations. Alternatively, a 95 per cent mortgage of €313,500 with a number of different lenders on a one-year fixed of 4.99 per cent would cost €1,580 per month over 35 years.

Potential:it should fetch a rent of around €1,200 a month, according to the agent.

Verdict:there are a number of apartments for sale in Fernleigh Grove, but number 37 seems to be the most keenly priced. A rent of €1,200 would represent a 4.2 per cent yield.

Calculations by Simply Mortgages