The address:The Lock House, Goldenbridge Terrace, Inchicore, Dublin 8.
The property:modern apartment development for €1.25 million comprising four two-beds and a three-bed penthouse.
The agent:Owen Reilly.
The landscape:The Lock House overlooks the Grand Canal and is beside Goldenbridge Luas stop.
The features:The Lock House was built about three years ago and was designed by HKR Architects. The two-bed units measure around 65sq m (700sq ft) and the three-bed unit has 90sq m (969sq ft). All units are fitted with alarms and parking is on-street.
How much for an investor?The total acquisition cost for an investor would be €1,328,750. An investor could raise €875,000, or 70 per cent of the purchase price. On a full-payment basis this would work out as €4,961.25 per month over 25 years and €3,427 per month on an interest-only basis. These figures are based on a variable rate of 4.7 per cent with AIB. Getting a higher loan-to-value rate in the current market would be difficult as banks have tightened up lending criteria. Securing a 70 per cent loan will not be easy and would hinge on the quality of the client as much as the potential rent from the property.
Potential?The units are rented and earning €73,000 a year. They are for sale as a going concern and come to the market fully furnished.
Verdict?A rent of €73,000 per year would roughly represent a yield of 5.4 per cent, which is decent in any market. It would suit a cash-rich buyer who won't need to rely on banks to finance their investment.
- Calculations by Simply Mortgages
- Fiona Tyrrell
