The address: 2 Crannagh Hall, Landscape Rd, Churchtown, D14.
The agent: Colliers Jackson-Stops.
The property: two-bed duplex for €575,000.
The landscape: built in the mid-1990s Crannagh Hall is a low density redbrick apartment and duplex block in Churchtown. Dundrum is a 20-minute walk and there are good services closer to home in Churchtown.
The features: the 103sq m (1,108sq ft) duplex has its own front door. There is a kitchen, utility and spacious livingroom with hard wood flooring on the first floor. Two decent bedrooms (one en suite) and the main bathroom are on the top level. The duplex is in good condition.
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 (or €488,750) would be €2,879 a month over 25 years. On an interest-only mortgage at the same rate and term the monthly repayments would be €2,077.
How much for a residential buyer? A single first-time buyer would need a salary of €133,000 to fund a 100 per cent mortgage over 35 years, while a couple would need to earn €62,000 and €60,000 to fund this mortgage.
Based on AIB’s one-year discount tracker rate of 4.6 per cent (APR 4.96 per cent), the loan would cost €2,749 a month for the first year. On its standard variable rate (SVR) of 5.25 per cent (APR 5.36 per cent), the monthly repayments would be €2,984. On a 92 per cent loan, the repayments would be €2,529 a month in the first year and €2,746 based on the SVR.
Potential: the house should make around €1,700 in rent a month, according to the selling agent. Maintenance fees are €1,800.
Verdict: the duplex is in a good rental location and well served by local amenities. It seems, however, **to be a little pricey **and, going on the above figures, investors on an interest-only mortgage would have to supplement the rent by almost €400 to pay the mortgage.