WORTH THE INVESTMENT

The address: 4 Waterside Park, Malahide, Co Dublin.

The agent: O'Farrell Cleere.

The property: three-bed terraced house for €475,000.

The landscape: Waterside is a large scheme built about four years ago. It is on the Swords Road. Malahide village is a five-minute drive and the Pavilions shopping centre is within striking distance.

The features: the 111sq m (1,200sq ft) house is beautifully presented. Accommodation includes a livingroom with semi-solid walnut floors and open-plan kitchen with dining area. There are three bedrooms upstairs, all have semi-solid cherry floors and one is en suite.

How much for an investor? Stamp duty on €475,000 is €24,500 for investors. An investor could raise €427,500 - or 90 per cent of the price. On a full payment basis this would work out as €2,231 per month over 30 years and €1,692 per month on an interest-only basis. These figures are based on a two-year fixed rate of 4.75 per cent with IIB Homeloans.

How much for an owner occupier? A first-time buyer could go for a 95 per cent mortgage of €451,250 at a rate of 4.75 per cent fixed for one year with Bank of Scotland. Over 35 years this would mean a repayment of €2,206 per month. Most lenders have now ceased the 100 per cent product for all but a few occupations.

Potential: the house should get around €1,600 a month in rent, according to the selling agent. Maintenance fees are €500.

Verdict: A rent of €1,600 per month represents a yield of around 3.8 per cent. There is a lot of stock on offer in this area but number 4's walk-in condition should help boost its rentability.

Calculations by Simply Mortgages

© 2008 The Irish Times

This article appears in the print edition of the Irish Times