The address:Newcastle Lyons, Newcastle, Co Dublin.
The property:new one-bed, second floor apartment with 64sq m (690sq ft) of space for €119,950. There is plenty of communal car-parking and the annual service charge is €1,100.
The agent:Douglas Newman Good.
The landscape:surrounded by farmland and the Lyons estate, Newcastle Lyons is part of the village of Newcastle about 20kms south-west of Dublin city centre. While it has seen some development in recent years, the area retains its village charm. It is less than a mile from the N7 and is served by a selection of bus routes and is close to Hazel Hatch train station. Many residents commute to the city centre or to nearby Citywest.
How much for an owner-occupier?The best loan-to-value rate a first-time buyer could get is 92 per cent of the price, or €109,480. To qualify for this mortgage, you would need a joint or single income of €30,000. The best rates, all with AIB, over 25 years would be a 2.65 per cent variable, giving monthly repayments of €499; a one-year fixed rate of 2.4 per cent (€485 a month); a two-year fixed rate of 2.8 per cent (€507 a month); a three-year fixed rate of 3.19 per cent (€530 a month); and a five-year fixed rate of 3.86 per cent (€569 a month).
How much for an investor?An investor could get an 80 per cent mortgage, or €95,960, and there would be no stamp duty as the purchase price is under the threshold. A variable mortgage at a rate of 4.29 per cent with KBC over 20 years would give monthly repayments of €596 and, over 25 years, repayments work out at €522 a month. Based on a rent of €600 a month, this would give a yield of 6 per cent.
Potential?The apartment would rent for between €600 and €700 a month, according to the agent.
Verdict:suits an investor in for the long-term.
Calculations by Ben Rance, Simply Money
