The address:Dunguaire Cottage, Kinvara, Co Galway
The property:30-year-old five-bed thatch cottage in good decorative order which sits on an acre with 279sq m (3,000sq ft) of space. It faces romantic Dunguaire Castle on the shores of Galway Bay.
The agent:DNG Brian MacMahon.
The landscape: Kinvara, one of the most sought-after villages in Co Galway, is 20 minutes by car to Galway city and is nestled between the northern edge of the Burren and the southern shores of Galway Bay. Three years ago, according to the agent, the house would have made around €2 million – while an acre in Kinvara was making around €1.6 million a little over a year ago – but Dunguaire Cottage is now on the market for €1.2 million.
How much for an owner-occupier?A first-time buyer could secure a mortgage of up to 92 per cent, or €1,104,000, at a one-year fixed rate of 2.4 per cent with AIB over 35 years giving repayments of €3,886.08 a month. They could also opt for a variable rate of 2.9 per cent, giving repayments of €4,184 a month (this excludes mortgage interest relief which could reduce repayments by up to €416.66 a month).
How much for an investor?Stamp duty on €1.2m is €75,250 for investors or people trading up bringing the total cost to €1,275,250. An investor could raise €840,000, or 70 per cent of purchase price, and on a full payment basis this works out at €3,855.60 per month over 25 years and €1,890 per month interest-only. This is based on a variable rate of 2.7 per cent with AIB.
Potential?In high season, April to September, the house could rent for between €2,000 to €2,500 a week, according to the agent.
Verdict:more of a high-end family house than a tourist let.
Calculations by Simply Mortgages
– Justin Comiskey
