The address:47 Lansdowne Hall, O'Callaghan Strand, Limerick.
The agent:Sherry FitzGerald O'Malley.
The property:a two-bedroom second floor apartment with a price tag of €320,000.
The landscape:this attractive scheme is located a few minutes walk from the city centre close to the banks of the Shannon.
The features:the 84sq m (904sq ft) apartment comes to the market in walk-in condition. It has an open-plan living/dining-room, a separate galley kitchen and two double bedrooms (one en suite).
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 4.85 per cent, the repayments on a loan equivalent to 85 per cent of the asking price - €272,000 - would be €272,000 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,099 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €69,000 to fund a 92 per cent mortgage over 35 years, while a couple would need to earn around €35,000 each.
Based on AIB's one-year discount tracker rate of 4.35 per cent, the loan would cost €1,363 a month for the first year. On its standard variable rate (SVR) of 4.85 per cent, the repayments would then be €1,454.
On a 100 per cent loan of €320,000, the repayments would be €1,481 in the first year and €1,580 based on the SVR.
Potential:this house should get around €1,200 a month in rent. Service charges are around €1,500 a year.
Verdict:in a prime residential area of Limerick, this apartment should be very easy to rent to young professionals. The rental income will clear the mortgage for an interest-only investor.
• Calculations by AIB
