The address:The Ivory Building, Cardiff Lane, off Sir John Rogerson's Quay, D2.
The agent:HT Meagher O'Reilly New Homes.
The property:a first floor two-bed apartment for €429,500.
The landscape:this scheme of 29 one, two and three-bedroom apartments first hit the market in 2007. It is located in the fast-developing docklands area on Cardiff Lane, off Sir John Rogerson's Quay near Grand Canal Square. It forms part of a larger mixed-use scheme, which incorporates the Quality Inn Hotel and the new ESRI offices.
The features:the 72sq m (775sq ft) apartment has a kitchen/livingroom with a balcony. A car-parking space will cost an additional €45,000. Kitchen appliances are included in the price and annual maintenance fees are €1,500.
How much to buy for an investor?Stamp duty will be €21,315 for investors giving a total cost of €450,815. An 80 per cent loan on a full-payment basis would mean mortgage repayments of €2,212 per month over 25 years. On an interest-only basis these repayments would be €1,715 per month. These figures are based on a two-year fixed rate of 5.99 per cent with IIB Homeloans.
How much to buy for an owner-occupier:A first-time buyer could go for a 92 per cent mortgage of €395,140 at a rate of 5.2 per cent (two-year fixed) with AIB. Over 35 years this would mean repayments of €2,046 per month.
Potential?Purchasers at the scheme have been predominantly first-time buyers, many working locally with legal firms. Many of the new apartments built in the docklands are now coming on the rental market and supply has gone through the roof, according to Igor Fleming from from www.dublinlettings.com. Two-beds that were achieving €1,800-€2,000 are now getting €1,500-€1,600, he says. On the plus side there is still a lot of demand for rental accommodation in the area once the price is realistic.
Verdict? Like property all over the city, prices have come down at the Ivory Building. Two-bedroom apartments are now priced at €429,500, down from €489,000 in 2007. Still, a rent of €1,600 per month would represent a yield of around 4.25 per cent.
Calculations by Simply Mortgages
Fiona Tyrrell
