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Property Section, Todays Irish Times

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Dublin is the hands-down winner in the british isles bubble stakes. Renting just about anything in the greater dublin area is far cheaper than mortgaging.

From todays Irish Times property porn section.

Two-bedroom, 1,100sqft 'mews' in Dublin 4 - the Dublin equivalent of Chelsea/Kensington etc. Asking > €1m, with stamp duty. With 20% down, a 25yr mortage would cost approx €750/mth more than renting it. (Of course, not factoring in maintenance, tax, fees etc) Still, apparently according to the Irish Times our leading light of free-thinking independent journalism, "its probably more appealing to a cash-rich investor looking for long term capital growth"

Here's the linkhttp://www.ireland.com/newspaper/property/2005/0825/1785686679RPINVESTMENT_25.html

Here's the article

Worth the investment

Edel Morgan

Address: 4 Ardoyne Mews, off Pembroke Park, Dublin 4.

Agent: HOK Residential.

House type: two-bedroom mews for over €925,000.

What do you get? A 102sq m (1,100sq ft) mews in an exclusive development of eight houses. Architect-designed, it has high ceilings, wooden floors, a Siematic kitchen, underfloor heating, floor-to-ceiling windows, a utility room and a south-facing decked terrace perfect for alfresco dining. There is also ample car-parking.

Set in well maintained mature gardens beside Herbert Park, it has understairs storage in the hall, custom-designed oak shelving, and a staircase with a glass screen. The main bedroom has an oak fitted wardrobe and a shower en suite.

How much for an investor to buy? Based on an 80 per cent mortgage at a 3.6 per cent investment tracker rate, the monthly repayments over 20 years would be €4,325.69 and over 25 years would be €3,740.11. If the customer opted for an interest-only loan for the first 10 years, Bank of Ireland would lend a maximum 70 per cent. Based on an investment tracker rate of 3.6 per cent, repayments per month for the first 10 years would be €1,780.63. After 10 years monthly payments revert to a repayment mortgage over a maximum of 15 years at prevailing repayment rates at the time.

How much to buy? For both first-time buyers and existing customers, Bank of Ireland will lend a maximum of 80 per cent of the purchase price. Based on a tracker rate of 3.3 per cent, the monthly repayments (not allowing for tax relief) over 25 years would be €3,622 and over 35 years would be €2,969.39.

Single income required: to qualify for a loan of €740,000 a single person would need to earn circa €148,000.

Joint income required: joint borrowers would need a combined income of circa €164.500.

Service charge: €2,500 per annum.

Stamp duty? €83,250 for investors, trader-uppers and first-time buyers.

Potential: Dublin 4 is a prime corporate letting territory and a mews in such an exclusive development should fetch in the region of €2,000-€2,500 per month.

Verdict: probably more appealing to a cash-rich investor looking for long term capital growth.

Calculations by Bank of Ireland

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  • 301 Brexit, House prices and Summer 2020

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