The address:Corranroo Cottage, Kinvara, Co Galway/ The Burren, Co Clare.
The property: three-bed thatched cottage with adjoining three-bed chalet for €450,000. The overall floor area is 190sq m (2,040sq ft), is in good condition (about three-star standard, according to the agent) and sleeps nine.
The cottage is by the seashore, with an enclosed, mature, seaside garden to the front and rear, and mountain views.
The agent:Colm Farrell auctioneers.
The landscape:the cottage is about three miles from Kinvara and close to Ballyvaughan in a much sought-after location. Galway city is a 25-minute drive away.
How much for an owner-occupier?The maximum loan considered by AIB for a first-time buyer is 92 per cent of the price, or €414,000, leaving them requiring equity of at least price €36,000.
To quality, a single buyer would require a salary of €98,500 to fund this mortgage over 25 years while two individuals would require minimum incomes of €40,000 each. Monthly repayments at a variable rate of 2.99 per cent (APR 3.03 per cent) would be €2,294 over 20 years and €1,958 over 25 years.
How much for an investor?Stamp duty is €22,750. The maximum loan considered by AIB would be 75 per cent of the value, or €337,500, and the maximum term is 25 years.
An investor faces a equity requirement of at least €135,250. At AIB’s buy-to-let variable rate of 4.2 per cent (APR 4.27 per cent), the monthly repayments on this mortgage would be €2,079 over 20 years and €1,816 over 25 years.
Potential?The house would rent for between €800 and €1,000 a week during the high season (Easter to the end of September) and for around €200-€300 for the likes of a bank holiday weekend off-peak, according to the agent.
Verdict:suits an owner-occupier, or someone looking for a holiday home with income potential.
- Calculations by AIB
– Justin Comiskey
