Address:Apt 38, The Bailey, IFSC, Dublin 1

Agent: Gunne

Property:60sq m (645sq ft) two-bed fourth floor apartment for €460,000

Landscape:bang in the heart of everything in the IFSC, No 38 is a 10-minute walk from the city centre and beside all transport links.

Features:built in the mid-1990s, number 38 is beginning to show its age and the bathroom and kitchen look a bit tired. There is, however, an updated livingroom, which has a large balcony and great river basin views.

How much for an investment?With stamp duty at 7.5 per cent and legal fees at 0.5 per cent, the total acquisition cost is €497,283.

On a 90 per cent mortgage at a PTSB 0.9 per cent tracker rate of 4.75 per cent over 20 years, the repayments would be €32,104 a year. On an interest only loan they would be €19,665. The annual rental return would be €13,000 taking into account one month's costs and one month void.

The shortfall on an annuity mortgage would be €19,104 per annum. On an interest only mortgage. it would be €6,665. This gives a yield of 2.8 per cent. To break even, the mortgage would need to be 36 per cent of the property value.

How much for a residential buyer? On a 92 per cent IBOSI discount tracker rate of 3.85 per cent over 20 years, the annual mortgage repayments would be €30,374. On an interest only mortgage it would be €16,293.

Potential:It should fetch a rent of around €1,300 a month, according to the agent.

Verdict:There is considerable competition in the area for rental but the car-parking space with it should help matters. With a yield of 2.8 per cent, this property is suited to an investor willing to hold on to the property in the hope of long term gains.

- Calculations by Simply Mortgages