160 150.00 €
Type: Buy to Let
Mortgage rank: First
Interest payment schedule: Monthly
Min. amount of investment - € 100
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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
InRento is introducing a new buy to let investment opportunity located in Vilnius, the capital of Lithuania. The investment opportunity consists of seven studio type lofts located: at Pramonės str. 141, Vilnius (referred to as P141, Vilnius).
This project is unique in that the owner will pay a fixed 7.3% annual interest (as a rental return). The project generates 974 EUR per month for investors, which is distributed proportionally according to the amount invested. Six of the seven lofts are currently fully equipped. The installation of the last loft will be similar to the existing ones.
This project has a fixed percentage of capital gains. Investors are guaranteed a 2.5% return on capital gains per year, which raises the overall return on the project.
Reasons to invest in P141, Vilnius -
Legal entity whose field of activity is the administration of the lease of premises. Investors are allocated a rental income of EUR 974 per month in proportion to the amount invested, which ensures a fixed annual interest rate return of 7.3%.
Rental income (interest) for the current period is indexed using the average annual consumer price index (CPI) calculated by Statistics Lithuania.
Financial terms of the investment:
InRento investors are granting a loan to the borrower for the acquisition of the rental property. The loan is secured with a first-charge mortgage, which in case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset.
Rental income (interest):
The interest is calculated from the moment investment funds are received.
The project owner (borrower):
The borrower - MB „P141 loftai“, is an established legal entity that serves as a special purpose vehicle (SPV) to increase investment security for loans from InRento. The head of this company is Linas Ginaitis, who specializes in the sale of residential housing, lofts and land plots. L.Ginaitis also has experience in developing massive residential plots and Microloft projects.
When is it possible to "exit the project"?
When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is charged to the seller. As of now, one transaction per month is free of charge.
What happens if the tenants leave the property?
This project has a fixed percentage of capital gains. Investors are guaranteed a return on capital gains of 2.5% per annum. This means that regardless of whether the assets are sold or refinanced, investors will be paid a fixed percentage of capital gains.
If the project lasts for one year, the interest of investors from the capital gain will be: 2.5%, two years: 5%, three: 7.5%, four: 10%, five: 12.5%.
Key investment risks:
Risk of falling prices: The price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.
Liquidity risk: The borrower might be unable to find a buyer in order to sell the property.
Investing with InRento, is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancies, the borrower is required to distribute fixed-interest payments, which protects your bottom line.
|20.10.2021||Paid||No||21 October 2021, 19:23|