The address:44 Chieftains Drive, Balbriggan, Co Dublin.
The agent:Flynn.
The property:three-storey, four-bedroom house for over €390,000.
The landscape:this semi-detached corner house overlooks a green area to the front and is near Balbriggan's main street and train station, and within walking distance of Castlemill shopping centre.
The features:this house has a lounge with an approximate area of 6 metres by 3 metres and a diningroom of similar size. The downstairs also includes a kitchen, hallway, closet, utility room and bathroom, while on the first floor there are two single bedrooms and a bathroom. Two double bedrooms, one of which is en suite, are on the second floor. There is a west-facing back garden.
How much for an investor to buy?At Bank of Ireland's investment mortgage rate of 4.8 per cent APR, the monthly repayment will start out at €1,976 over 25 years, based on the maximum loan of 90 per cent of the asking price, or €351,000.
On an interest-only basis, the maximum loan will be 85 per cent of the price, or €331,500, giving a monthly repayment of €1,286 in the first two years under the bank's discount tracker.
How much for a residential buyer?A first-time buyer opting for a 100 per cent loan would pay €1,805 a month over 35 years, based on Bank of Ireland's one-year discount tracker. A buyer who is trading up will initially pay €1,941 a month over 25 years, based on a 92 per cent loan.
Potential:this house should get around €1,300 a month in rent.
Verdict:if the potential rent can be secured, interest-only investors will be able to fully cover their mortgage during the discount interest rate period.
Calculations by: Bank of Ireland
