The property:two-bed apartment for €495,000.
The landscape:Gannon Homes' Rockfield development has a great Dundrum location. It is beside Balally Luas stop and a short stroll from the Dundrum Town Centre. The scheme has around 350 apartments. This apartment has a large balcony with views over Airfield Trust (Dublin's only urban farm).
The features:with 80sq m (861sq ft) the apartment has a standard layout with a main living/diningroom and adjoining kitchen. There are two bedrooms and two bathrooms. The apartment is in walk-in condition with a smart decor.
How much for an investor?Stamp duty on €495,000 will be €25,900 for investors making the total acquisition cost for investors €520,900. An investor could raise €342,000, which represents 90 per cent of the purchase price. On a full-payment basis this would work out as €2,387 per month over 30 years and €1,852 per month on an interest-only basis. These figures are based on a variable rate of 4.99 per cent with Haven Mortgages (EBS).
How much for an owner-occupier?A first-time buyer could get a 92 per cent mortgage of €455,400 at a rate of 4.74 per cent one-year fixed with First Active. Over 35 years this would mean a repayment of €2,222 per month. Most lenders have now ceased the 100 per cent mortgage product for all but a few occupations and getting more than a 92 per cent mortgage is now very difficult.
Potential:the apartment should get around €1,800 a month in rent, according to the selling agent, and service charges are €1,300 a year.
Verdict:this rental would result in a yield of around 4.1 per cent.
• Calculations by Simply Mortgages
- Fiona Tyrrell
