The address:Apt 39 Collins Square, Benburb Street, D7. The property:one-bed on the ground floor for €175,000.
The agent:Lisney.
The landscape:Collins Square is a scheme of some 80 apartments beside the National Museum at Collins Barracks.
The features:with 45sq m (484sq ft), this apartment has an entrance hallway, combined kitchen/livingroom, double bedroom and a private patio.
How much for an investor?Stamp duty on €175,000 will be €3,500 for investors (or people trading up), bringing the total cost to €178,500. An investor could raise €122,500 or 70 per cent of the purchase price. On a full-payment basis this would work out as €723 a month over 25 years and €520 a month interest-only. These figures are based on a variable rate of 5.1 per cent with ICS.
How much for an owner-occupier?A first-time buyer or person trading up could get a mortgage of 92 per cent (€161,000) at a 4.5 per cent variable rate with AIB over 35 years. This would mean a repayment of €762 a month.
Potential?When apartments at Collins Square were first launched in April 2001 one-beds were priced at £141,000 (€179,033). The scheme sold well to owner-occupiers who were able to avail of tax breaks. Seven years later the apartment is on the market for €4,000 less. Rent would be around €900 a month, says the selling agent. The service charge is €1,451.
Verdict?A rent of €900 a month represents a yield of 6 per cent, good in any market.
• Calculations by Simply Mortgages
- Fiona Tyrrell
