The Address:12 Sherbourne Court, off Charleston Road, Ranelagh, Dublin 6
The Agent:Youngs
The Property:One-bedroom studio apartment with an asking price of €350,000
The landscape:One of around 20 apartments located in two period houses. The Luas and Ranelagh village are both close.
The Features:The 40sq m (425sq ft) studio, in the modern section of the scheme to the rear of the period houses, is in good condition; it has large windows and high ceilings. Accommodation includes a hall, bathroom, galley kitchen, living area with fireplace and sleeping area. There is communal parking to the front and rear and a laundry room. Maintenance fees are high at around €1,500 but the scheme is in very good order.
How much for an investor?Stamp duty on €350,000 will be €21,000 for investors. An investor could raise €297,500, representing 85 per cent of the purchase price. On a full-payment basis this would work out as €1,701 per month over 25 years and €1,187 per month on an interest-only basis.These figures are based on two-year fixed rate of 4.79 per cent with ICS, the best two-year rate that is available for investors, according to Simply Mortgages.
How much for a residential buyer? A first-time buyer could get a 100 per cent mortgage at a rate of 4.79 per cent fixed for two years with ICS over 35 years. This would mean repayments of €1,719 per month. Alternatively a 92 per cent mortgage with ICS at 4.79 per cent again fixed for two years would cost €1,581 per month.
The Potential:It should fetch a rent of around €1,000-€1,100 a month, according to the agent.
The Verdict:This represents roughly a three per cent yield which is on the low side in today's market. The location however is excellent and is always going to be very lettable.
Calculations by Simply Mortgages
