Address: Belgard Square, Belgard Square West, Tallaght, Dublin 24.
Agent: Hooke & MacDonald.
Apartment type: two-bedroom Section 23 apartment from €345,000.
What do you get? Contemporary-style apartments with decked balconies. Floor-to-ceiling windows in the sittingroom and two bedrooms provide lots of light. Most units in this phase have views of the Dublin mountains. Bathrooms have chrome fittings, ceramic floor tiles and part wall tiling. The kitchens have ceramic floor tiles, storage space, granite worktops, and electrical appliances. All units have access to a landscaped courtyard. Underground car-parking spaces cost an additional €15,000 and the service charge for two-bedroom units is €1,300 a year. When complete, the development will comprise 360 units, shops, a crèche and a leisure centre.
Where? Belgard Square is a new development of residential and commercial units on Belgard Square west. It is across the road from The Square shopping centre and the UCI cinema complex. The Tallaght Luas stop is nearby.
How much for an investor? The standard variable buy-to-let rate for a first or second property is 3.5 per cent. The repayment on an 85 per cent mortgage at this rate over 25 years, would be €1,466 per month. Where an investor has three or more investment properties with AIB, the pricing will be individually negotiated based on the risk assessment of the proposal where the loan-to-value is 75 per cent. With an interest-only loan, the repayment for this mortgage would be €856 per month based on our standard variable rate of 3.5 per cent. At AIB's one-year fixed new business rate of 2.75 per cent, the repayments on this mortgage would be €1,177 per month. Repayments at the standard variable rate of 3.3 per cent would be €1,274 per month over 35 years. The current tracker rate of 3.1 per cent would have repayments of €1,238 per month for this property over 35 years. A first-time buyer can borrow up to 92 per cent of the property price.
A single first-time buyer requires a salary of €66,000 to fund this mortgage over 35 years. A couple require minimum incomes of €37,000 each to fund the mortgage over 35 years.
Potential: a good location in an up-and-coming part of Tallaght. The hospital and the Section 23-led redevelopment of central Tallaght has transformed the fortunes of the area, which has a large employment base. A two -bed apartment will command a rent of around €1,150 per month, however there should be competition for tenants, with a number of relatively new residential developments in the area.
Verdict: the Section 23 designation - which is becoming increasingly rare - will attract investors who shouldn't have much problem letting there. Medium term capital appreciation could be limited though.
Calculations by AIB
