The address:6 St Joseph's Terrace, Dublin 3.
The agent:Douglas Newman Good.
The property:a 85sq m (915sq ft) three-bed terraced house with an asking price €550,000.
The landscape: St Joseph's Terrace is a cul-de-sac of period houses between Philipsburgh Ave and Griffith Ave. The city centre, IFSC, East Point Business Park and Clontarf Dart station are within walking distance.
The features:recently modernised, number 6 has three bedrooms upstairs and a main bathroom. Downstairs, in addition to two reception rooms, there is a guest WC and kitchenette. The back garden needs work but is a good size.
How much for an investor to buy?At Bank of Ireland's investment mortgage rate of 4.99 per cent (APR 5.4 per cent), the monthly repayment will be €2,885 over 25 years, based on the maximum loan of 90 per cent of the asking price, or €495,000. On an interest-only basis, the maximum loan will be 75 per cent of the price, or €412,500, giving a monthly repayment of €1,695 in the first two years under the bank's tracker rate. This is available on an interest-only basis for seven years. Repayments will be €2,884 for the remainder of the term.
How much for a residential buyer?A first-time buyer opting for a 92 per cent loan would pay €2,952 a month over 25 years, based on Bank of Ireland's tracker. An owner-occupier could get a two-year fixed rate mortgage from Bank of Ireland which would involve monthly repayments of €2,920.
Potential:rent of around €1,350 should be achieved by this property, according to the selling agent.
Verdict:going on the above mortgage figures and a rent of €1,350, investors on a two-year fixed rate would be €1,500 shy of the monthly repayments and interest-only investors will be around €350 short.
Calculations by Bank of Ireland
