Worth the Investmentthis week looks at a six-storey Georgian apartment building in north Dublin
The address:28 North Frederick Street, Dublin 1
The agent:Savills HOK.
The property:six-storey renovated apartment building with 12 one-bed units and a creche at basement level for €3.9 million.
The landscape:just off Parnell Square and within minutes of O'Connell Street, North Frederick Street is a traditional Georgian street with a mix of office and residential buildings.
The features:number 28 was bought by the current owner over 10 years ago and rebuilt. The facade was retained, but the interior converted to 12 one-bed apartments with a lift. A creche (with 20 places) is at basement level. There are four car-parking spaces to the rear. The building was renovated to a high standard last year and is in walk-in condition. There are timber floors and Neff kitchen appliances.
How much for an investor to buy?
Stamp duty on this property will be €322,250, bringing the total acquisition cost (excluding legal fees) to €4,222,250. The maximum loan considered by AIB for an investment property is 85 per cent of the value, with up to 100 per cent (loan to value) LTV considered for portfolio investors, subject to the overall LTV of the portfolio not exceeding 75 per cent. The maximum term is 25 years. At AIB's buy-to-let tracker rate of 5.10 per cent (APR 5.21 per cent), the repayments would be €19,525 per month. Where an investor has three or more investment properties with AIB, the pricing will be individually negotiated based on the risk assessment of the proposal where the LTV is 75 per cent.
With an interest-only loan (at 85 per cent LTV) the repayments would be €14,089 per month (based on a buy-to-let tracker rate).
Potential:rental income per annum would be around €170,000, according to the selling agent. Last year the 12 apartments brought in a rental income of around €140,000 and the crèche was earning around €30,000. Planning permission has been secured for the construction of a four-storey detached crèche (with 26 child spaces) to the rear of the building with access from Frederick Lane North.
Verdict:so close to all the north city hot spots, number 26 is in a great rental location. On the above figures, rental income will just about cover the repayments on an interest-only mortgage. With credit hard to secure at the moment, it might only suit a cash investor looking for a medium to long-term investment.
Calculations by AIB
