WORTH THE INVESTMENT?

Address:277 Bachelors Walk, Dublin 1.

Agent:Lisney.

Property:one-bedroom own-door ground floor apartment with an asking price of €250,000.

Landscape:a Zoe Developments scheme dating from the mid 1990s, Bachelors Walk comprises 335 apartments, the vast majority of which are small one-bedroom apartments. Not the most attractive of schemes, the main selling point is its city centre location on the quays in the heart of Dublin 1.

Features:to the rear of the Bachelors Walk scheme, number 277 is a ground floor own-door apartment of 33sq m (359sq ft). Accommodation comprises a sitting/living/kitchen. Decor is dated. The annual service charge is €1,078, according to the agent.

How much for an investor?Stamp duty on €250,000 will be €12,500 for investors. An investor could raise €225,000 - 90 per cent of purchase price. On a full payment basis this works out as €1,314 a month over 25 years and €935 per month interest-only. These figures are based on a one-year fixed rate of 4.99 per cent with Permanent TSB.

How much for a residential buyer?a first-time buyer could get a 100 per cent mortgage at a one-year fixed rate of 4.75 per cent with Bank of Scotland over 40 years, which would mean a repayment of €1,165 per month. (Most lenders have now ceased the 100 per cent product for all but a few occupations.)

Alternatively, a 92 per cent mortgage of €230,000 with Bank of Scotland at a 4.75 per cent one-year fixed rate would cost €1,071 per month over 40 years.

The one-year fixed rate is very good at the moment although there are new offerings from many banks which are worth considering depending on your attitude to risk.

Those who are more concerned about upward fluctuations in rates may look at fixing for longer than one year, according to Simply Mortgages.

Potential:the rent per month for this property would be €800, according to the selling agent.

Verdict:a rent of €800 per month would represent a 3.7 per cent yield, which is just about reasonable. Bachelors Walk is very central making the apartment very lettable.

Calculations by Simply Mortgages