The address:46 Portland Lock Quay, Portland Place, Dublin 1.
The agent:Douglas Newman Good.
The property:a one-bedroom second floor apartment priced €290,000.
The landscape:this small scheme, built around two years ago, is off Dorset Street Lower near the Royal Canal. It's in striking distance of the city centre.
The features:the 45sq m (483sq ft) apartment is in walk-in condition and has an open-plan living/diningroom and Shaker-style galley kitchen.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 5.1 per cent, the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €246,500 - would be €1,452 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,048 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €65,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn around €30,000 each. Based on AIB's one-year discount tracker rate of 4.6 per cent, the loan would cost €1,386 a month for the first year.
On its standard variable rate (SVR) of 5.1 per cent, the monthly repayments would then be €1,479. On a 92 per cent loan of €266,800 the monthly repayments would be €1,275 in the first year and €1,361 based on the SVR.
Potential:this house should get around €1,000 a month in rent.
Verdict:if the potential rent can be secured, interest-only investors will be €50 shy of covering their mortgage during the discount interest rate period and that's not including other costs, including maintenance fees of €1,000. The apartment's location and one underground car-parking space are a big boost to its rentability.
Calculations by AIB
