This article was published on vz.lt
InRento, the crowdfunding platform for buy-to-let projects, continues to deliver stable results. The platform has recently crossed the EUR 20 million threshold in investments raised, maintaining an average return on investment of over 11%, and all projects are on time. In total, the investors on the platform have already earned over EUR 1.3 million.
"In just a few years of our history, we have managed to earn a high level of investor confidence with an increasingly strong investment performance. In September, we disclosed that we had attracted EUR 15 million in investments, and less than half a year later, this figure has increased to more than EUR 20 million.
We achieve this result by carefully selecting the project owners we work with and building and maintaining a professional team. This ensures that none of our projects is subject to delays. In addition, the user-friendly platform and quality customer service guarantee not only high customer satisfaction but also good investor feedback," says Deividas Urbanovičius, Head of Investor Relations at InRento.
It is also important that a crowdfunding platform with relatively low risk is able to generate substantial returns - the average annual return on investment on the InRento platform is currently over 11%.
Also, the average annual return for all projects has been higher than initially indicated. This is due to the company's practice of capital gains and interest indexation.
Another distinctive feature of InRento is that investors can stay in some financed projects using “Timeshare”. The benefits of such an offer are mutual, as investors receive a non-financial, tangible return on their investment, while owners receive additional visibility and reviews.
Bringing together a wide community of investors
One of the distinctive features of the InRento platform is its extremely broad and diverse community of more than 2.5 thousand active investors.
According to D. Urbanovičius, many are foreign investors with different habits than Lithuanians.
"Germany, Italy, Spain, the Netherlands or Lithuania - we bring together an extensive range of investors who put their money into different buy-to-let projects. Interestingly, people from abroad tend to diversify their portfolios more. This may be related to the fact that they find it more difficult to assess the location of a project and to take into account the domestic market. Meanwhile, Lithuanians prefer to choose fewer projects and invest larger sums in them," says D. Urbanovičius.
Buy-to-let market is a sustainable choice
Record high Euribor interest rates and high inflation have created serious challenges for the housing market. As it becomes more difficult to buy a property, projects directly dependent on sales are also coming on the rental market.
However, Urbanovičius points out that the property sales and rental markets are different, and the latter is growing in this context.
"Investing in property development is closely linked to the Euribor interest rate. However, renting, unlike buying, is a "commodity of first necessity". This means that it is possible not to buy property but to rent it, but it is not possible not to buy and not to rent. This is why the rental market has remained stable as property acquisitions have declined.
Given that Vilnius has a growing population, Lithuania has withstood the economic downturn, and it will become increasingly difficult to buy a home in the future, investing in the rental market is a relatively sustainable option," says the financial expert.
Encourages research rather than rushing into investment
When it comes to the key points for those who want to start putting their money to work and protect themselves against the inflation that is "eating" it, the Head of Investor Relations at InRento highlights three key points.
The first step is to discover the specific investment method you plan to invest in. Whether it's shares, bonds or rental property, he says, you should first dig deep and understand how the returns will be generated.
The second is to find out how the company offering the investment service earns money so that you can be sure that hidden fees or complex administration will not reduce the actual investment return. Such information must be clearly and publicly declared.
Finally, you should check whether the company is regulated by the relevant authorities. This way, you can feel more secure working with a supervised and licensed company.
"If you have solved these three tasks, then you can look at details such as the risk-return ratio, the investment horizon or diversification, etc., to decide which option is the most attractive and relevant for you. However, these three steps are the basis from which every person considering investing should start", says Urbanovičius.
InRento is the largest licensed crowdfunding platform for the financing of buy-to-let projects in the European Union, operating from 2020. The company has opened up the possibility of earning interest from property rental projects by investing as little as EUR 500 without worrying about finding tenants or managing the property. InRento's services are licensed and supervised by the Bank of Lithuania. InRento was named the #1 Investment Tech in Europe Fintech Awards in 2022.