The address:38 Priorsgate, Tallaght, Dublin 24.
Agent:Hooke MacDonald.
The property:one-bed second-floor apartment for €247,500
The landscape:Priorsgate is a new scheme by developer P Elliot. On the junction of the N81, Greenhills Road and Blessington Road, the development is near the old village in Tallaght, and is also close to newer developments such as The Square, the hospital, the institute of technology and the Luas.
The features:spread over three blocks of five and six storeys, Priorsgate has retail on the ground floor. The residential element is entered via an internal courtyard. Number 38 has 47sq m (505sq ft) of living space. Kitchen appliances are included. Apartments come with Section 23 relief - owner-occupiers qualify for tax relief on income over a 10-year period.
How much for an investor to buy?At AIB's buy-to-let tracker mortgage rate of 5.1 per cent (APR 5.21 per cent), the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €210,375 - would be €1,239 a month over 25 years.
On an interest-only mortgage based on the same rate and term, the repayments would be €894 a month.
How much for a residential buyer?A single first-time buyer would need a salary of €47,000 to fund a 92 per cent mortgage over 35 years, while a couple would need to earn around €25,000 each. Based on AIB's tracker rate of 5.1 (APR 5.21) per cent, the loan would cost €1,161. On its standard variable rate (SVR) of 5.25 per cent (APR 5.36), the monthly repayments would then be €1,182.
Potential:this apartment should get around €1,050 a month in rent, according to the selling agent. Maintenance fees are €1,250 a year and parking spaces are available for an extra €15,000.
Verdict:the figures stack up reasonably well. Going on the above rent investors on an interest-only mortgage would cover their costs. There is a lot of supply in the area but the Section 23 relief will be of interest to investors.
Calculations by:AIB
