Edel Morgan checks out the investment potential of a two-bed apartment in Sandyford, Dublin 18.

Address: Castle Court, Kilgobbin Wood, Sandyford, Dublin 18

Apartment type: Two-bed apartment from 305,000

Agent: Hooke & MacDonald

What do you get? A fairly generous floor space of 60-73 sq m (650-785 sq ft). All of the apartments have decent-sized balconies, an en-suite off the main bedroom, fitted kitchens and wardrobes, and are designed to take advantage of the views over the Dublin Mountains. Designed by Frank Elmes & Co, these units are located in what is described as "Parisian-style" blocks with a mix of brick and blue-black slate tile roofing at mansard level.

Where? Kilgobbin Wood is in Sandyford off the Ballyogan Road but is also close to Stepaside village. The M50 is a short drive away and the developers say there will be a Luas stop just outside the entrance to Castle Court on the Ballyogan Road. The estimated journey time from Sandyford to St Stephen's Green on Luas is 22 minutes.

What will it cost an investor to buy? Based on a 65 per cent mortgage spread over a 25-year term on an investment tracker rate of 3.54 per cent, the repayment per month is 995.89. The total amount payable over the term is 299,078.17.

If the purchaser opted for an interest-only loan, the repayment would be 575 per month. The total amount payable over the term in this case is 372,806.08.

What will it cost to buy? Based on a homeloan rate of 2.9 per cent (3 per cent APR), capital and interest is €943.23 per month, and the total amount payable over the term is €283,235.30. (This is based on a 65 per cent mortgate.)

Single Income required: ???

Joint Income required:

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Stamp Duty: Nil for owner occupiers, 15,250 for investors.

Solicitors fees: €2,000

Fit out costs: €7,000 minimum

More about Kilgobbin Wood: near golf courses, Leopardstown racecourse and the Westwood fitness and leisure centre, and it is convenient to Dundrum, where the new town centre is under construction. When completed Kilgobbin Wood will have 120 units on an eight-acre site in a mix of houses and apartments.

The apartments will be built in four blocks clustered around an open green area. Underground car-parking is included in the price.

Potential: Time will tell whether the Luas will have the "DART effect" on house prices but a Luas stop outside a development has got to be a bonus. This, combined with its proximity to Sandyford Industrial Estate, make it an attractive proposition. Rental returns for a two-bed apartment in the area are in the region of €1,200. However, there are quite a number of apartment developments in the area competing for tenants.

Verdict: This is an area on the up. Investors with a bigger mortgage than the one quoted may struggle to cover the mortgage but long term capital appreciation looks good.

Quotes by Ulster Bank.