The address:1 Grove Park, Rathmines, Dublin 6.
The property:end-terrace house in three two-bed apartments.
The agent:Felicity Fox.
The landscape:just south of the Grand Canal, close to Portobello Bridge and within striking distance of Rathmines and Ranelagh villages, as well as the city centre. Number 1 Grove Park has a great rental location on the fringes of the city centre while the Charlemont Luas stop is also in walking distance.
The features:a pre '63 property of 156sq m (1,680sq ft) with one apartment per floor. All have kitchen/livingrooms, two bedrooms and shower rooms. There is rear pedestrian access to a courtyard and on-street permit car-parking.
How much for an owner-occupier?A first-timer would not be liable for stamp duty, but other owner-occupiers would have a stamp duty bill of €43,750. It is difficult to get a fix on what loan-to-value mortgage a bank would offer on any property at the moment. If someone got a 92 per cent loan-to-value their mortgage would be €690,000. At a variable rate of 3.25 per cent over 30 years this would equate to monthly repayments of €3,001 on a full-payment basis. This is based on figures from AIB.
How much for an investor?Stamp duty on €750,000 will be €43,750 for investors, bringing the total acquisition cost to €793,750. An investor could raise €525,000, representing 70 per cent of the purchase price. On a full-payment basis repayments would be €2,950 a month over 25 years and €2,010 a month on an interest-only basis. These figures are based on a variable rate of 4.6 per cent with ICS.
Potential?The apartments will earn around €2,700 to €3,000 a month in total, says the agent.
Verdict?Assuming a rent of €3,000 per month an investor would expect a yield of around 4.5 per cent, which is decent.
- Calculations by Simply Mortgages
