Address: Rochford Manor, Trim, Co Meath, Agent: Raymond Potterton Auctioneers. Property: three-bedroom townhouse priced €299,000.
The landscape: Taggart Homes' Rochford Manor is a new scheme of 116 homes off the main Dublin-Trim road. The scheme, which is nearing completion, is adjacent to the Knightsbrook Golf and Country Club.
The features: these attractive 99sq m (1,066sq ft) townhouses come to the market complete with flooring, carpet, kitchen appliances and light fittings. Investors looking for a turn-key package can purchase a beautifully presented fully furnished three-bedroom townhouse for €325,000. Maintenance fees are €335 a year on three-bedroom townhouses.
How much for an investor to buy? At AIB's buy-to-let tracker mortgage rate of 5.1 per cent, the repayments on a loan equivalent to 85 per cent of the asking price - a sum of €245,150 - would be €1,499 a month over 25 years. On an interest-only mortgage based on the same rate and term, the repayments would be €1,080 a month.
How much for an owner-occupier buyer? A single first-time buyer would need a salary of €66,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn around €30,000 each.
Based on AIB's one-year discount tracker rate of 4.6 per cent, the loan would cost €1,429 a month for the first year. On its standard variable rate (SVR) of 5.1 per cent, the repayments would then be €1,525. On a 92 per cent loan of €275,080 the repayments would be €1,315 in the first year and €1,403 based on the SVR.
Potential: this house should get around €950 a month in rent, according to the selling agent.
Verdict: the rental market is good in the area and this scheme is in a well-regarded location. Nonetheless, going on the above figures, investors will not manage to cover their costs with rental income.
Calculations by AIB
- Fiona Tyrrell
