Edel Morgan assesses the investment potential of two-bed apartments at The Orchard, Malahide.
Address: The Orchard, Malahide Road, Dublin 1 3
Agent: Hooke & MacDonald
Apartment type: Two bed apartments at €255,000
What do you get? A typical two-bedroom unit has an entrance lobby with an open-plan sitting/diningroom and a kitchen off the dining end. They range in size from 61-73 sq m (660-790 sq ft) with electric heating,tall windows and French doors opening off the sittingroom . A stone and slate livingroom fireplace is fitted with an electric flame-effect fire.French doors open to either a small front terrace or balcony.
Both the double bedroom with its en suite shower and a large single room have fitted wardrobes. Underground parking is included in the price.
Where? The Orchard which had its initial sell out launch by Albany Homes in March and is located at the far end of Greenwood estate, another Albany Homes scheme which is now maturing . The Orchard is a 148-unit development adjacent to the massive new Tesco Clare Hall shopping centre and a Hilton hotel currently under construction. Darndale housing estate is situated on the opposite side of the Malahide Road. The development offers easy access to the M50, M1, and the city centre via a QBC .
What will it cost an investor to buy? On an investment property valued at €255,000 at 80 per cent of the property value of the property over 25 years at a Tracker mortgage variable rate of 3.2 per cent APR, the repayments per month would be €983.38.
If the customer opted for an interest only loan for the first five years, at 80 per cent of of the cost based on a 25 year term, and an investment Tracker rate of 3.2 per cent APR, repayments per month would be €535.50.
What will it cost to buy?At 92 per cent of the property value, at a Current Account Mortgage variable rate of 3.3 per cent APR over 25 years, the monthly mortgage repayments would be €1,145.27.
If the customer chose a repayment term of 30 years the monthly repayments would be €1,023.55.
The same mortgage could be taken over 40 years and monthly repayments would be €877.26.
Service charge: Around €1,350 per annum
Stamp Duty: None for an owner occupier, €12,750 for an investor
Solicitors fees: Typically 1 per cent of the purchase price plus land registry fees and VAT. Some are willing to negotiate a fixed fee.
Potential: Rental return is likely to be in the €1,000 per month region for a two bed apartment which would more than cover the mortgage repayments on the 80 per cent mortgage mentioned above . After been neglected for too long, the area is up and coming with a new Tesco shopping centre, a Hilton Hotel under construction and nearby amenities like the UCI cinema and Total Fitness.
Verdict: Investors in the area may face stiff competition in the future from rental properties in a number of developments being built in the area. Albany Homes has been granted permission for 386 apartments, also off the Malahide Road .
Other Albany schemes in the area include Ayrfield and the Greenwood Estate.
Mortgage calculations by First Active
