S47, Kaunas

Available for funding:  €0
€310 000
€310 000 goal
287 investors

The annual return indicates the fixed-interest rate, or what investors shall earn in percentages. Percentage may depend on amount of the investment. To see specific returns please enter investment amount above.

Annual return rate::
7.43%

Shows amount you've entered for amount of your investment above. Minimum investment amount is EUR 500.

Invest:
-

Shows amount that you are expected to earn during one year of investment. Earnings are automatically calculated when you enter the investment amount above.

Earn:
-  per year

This number indicates what part of the profit share you would earn when the property is sold for profit. More information can be found by scrolling below the project description.

Capital Gains Split:
45% – 55%

The InRento team is launching a new buy to let investment opportunity located in Kaunas, Lithuania. The investment case consists of two apartments located in the city center, address: Savanorių pr. 47, Kaunas (referred to as S47, Kaunas). This project has an A Risk Rating.

The building was originally constructed in 1941 and completely renovated a few years ago in 2018. The balconies in the apartments have panoramic views of Kaunas Old Town and main city street - Laisvės avenue. 

The area of the apartments: 77.13 m² and 77.29 m². Currently, the apartments are rented out and are generating 2,440 EUR per month in rental income, which results in a 9.44% gross annual rental yield.

The net monthly rental yield is 1,830 EUR which is distributed amongst investors, or as a percentage value equal to 7.08% per annum net, according to the circumstances of the tenancy. 

Kaunas is a fast growing city in Lithuania. The last few years have seen a significant increase in the number of real estate projects under development. This is influenced by the establishment of new international companies and the growing attractiveness of the city, which encourages young families to start and live.

Reasons to invest in S47 project in Kaunas:

  • Modern and cozy apartments in the city center; 
  • Complete renovation of the building in 2018; 
  • Rental income (interest) is calculated from the first day of investment in the project;
  • Attractive rental yield; 
  • The project owner is among “Strongest in Lithuania” by “Creditinfo”;
  • The premises have been independently valued at 356,000 EUR.

Capital growth change:
 
According to the latest en.aruodas.lt statistics, the prices of these types of properties in this district of Kaunas increased +17,31% in the recent year, while in the last five years the change was +65,19%.
 

Source en.aruodas.lt

Tenants:

The tenants are ten natural persons who pay 2,440 EUR per month for rent. Each of them has an individual lease with a one-month lease deposit. In case of the tenant's insolvency, this deposit will be distributed proportionally to investors. 

In the last few years, the occupancy of these apartments for rent exceeds 90%.

The project owner sees promising short-term rental opportunities for these apartments when the number of guests and tourists in the city returns to the pre-pandemic level. 

Financial terms of the investment:

  • Maximum term: 84 months (7 years)
  • Rental income share: Investors: 75% / Project owner: 25%
  • Fixed-interest rate: 2%
  • Increased interest rate: 6.5%
  • Security: 1st charge Mortgage

InRento investors are effectively granting a loan to the borrower. 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. 

The revenue-share between the project owner investors is set at 75/25, meaning that the borrower is obliged to distribute 75% of the income to the investors. Current absolute income is 2,440 EUR per month, which results in 1,830 EUR net income distribution to the investors, or in a percentage value equal to 7.08% per annum with the given situation of the tenancy.

The administration of this project requires a lot of financial and time resources. Taking this into account, the project owner's share of rental income reaches 25%. 

The capital growth distribution: 

  • Investors: 45% 
  • Borrower: 45% 
  • InRento: 10%

When investing: 

15,000 - 29,999 EUR - the capital growth will be distributed in the following structure: 50% investor / 45% borrower / 5% InRento.

30,000 EUR and more - the capital growth will be distributed in the following structure: 55% investor / 45% borrower.

Rental income (interest): 

The funding term for this project is 60 days. Rental income (interest) for investors will be calculated from the first day of investment in the project.

The first interest payment will take place on September 20th. 

The project owner (borrower):

UAB ‘’Rego Group“ - is a real estate services company with a wide range of services in its portfolio. The CEO of the company - Andrius Rimdeika is a former investment banker, who has worked in investment firms such as ”Morgan Stanley” and “Prime investment”. 

The company specializes in the development and advisory on property cash-flows, additionally, it provides consulting services in the area of Real Estate. More information can be found on their website.

Leading credit-scoring firm - “Creditinfo” has included the project owner among “Strongest in Lithuania”, the list of companies in Lithuania having the highest creditworthiness rating.

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.

What happens if the tenants leave the property?

In a scenario of the tenant cancelling the tenancy, the borrower is liable to pay a 2% annual interest rate for the first month of vacancy. If the borrower does not rent out the assets within 3 months, the fixed-interest rate would be increased to 6.5% per annum.

What will happen when the property is sold?

When the property is sold at a higher price than it was acquired, the capital growth will be distributed in the following structure: 45% investors / 45% borrower / 10% InRento. The project owner assumes potential loss if the property is sold at a lower price.  

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.

Tenant risk: Although the assets are currently fully rented out, there is a risk that the asset can lose a tenant and it can take time to find replacements.

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.

The capital gains distribution:

40% - 60%
Investors
40%
Project owner
Up to 20%
InRento

If the Loan is repaid after one year, a fixed return of 1.75% is applied.
If the Loan is repaid after 24 months, a fixed return of 3.5% is applied.
The profit margin is payable whether or not the Loan is repaid from the sale of the property.

These numbers reflect the data about investments of InRento and companies InRento acquired and merged with.

Discover all statistics

84 months
maximum loan term

These numbers reflect the data about investments of InRento and companies InRento acquired and merged with.

Discover all statistics

1st charge
Mortgage
Security

These numbers reflect the data about investments of InRento and companies InRento acquired and merged with.

Discover all statistics

7.43 %
+ %
annual return
Investment bonus:
Financial terms of the investment

Property in the map

The project owner (borrower) Project owner

Rego Group, UAB

2022-09-01

After one out of two apartments of this project had been sold, investors, on average, earned a 20.19% annual ROI return. The other apartment is continuing to be rented.

Starting from next month, the monthly payout for the investors will be – 982.50 EUR, or in percentage value – 7.61% annually. This means that the NET return from the rent of this project since publishing it has grown by more than 13% (from 6.82% to 7.61%).

InRento is the only platform offering investors to invest in buy-to-let projects, where the returns are indexed to inflation, and investors get an opportunity to participate in capital gains, this way protecting even further from inflation.

2022-04-20

The project S47, Kaunas rental contracts were under review.

As a result, the rent increased from 1829 EUR to 1920 EUR per month. This means, that the annual current return to investors rises from 7.08% to 7.43%.

If you have any questions, do not hesitate to contact us at: info@inrento.com or call us at +37069347427.

2021-08-30

The project owner has begun an active work with the tenancy, currently the contracts are under review.

As a result one of the contracts had a rent increased by 79 EUR. This means, that the annual current return rises to 7.08%.

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427

InRento team

2021-08-26

We would like to inform you, that the mortgage on the S47, Kaunas assets has been successfully placed (document is attached in the documents section). We would also like to remind you that the interest is calculated for each investor individually from the day the investor places his investment. For this reason, all the accrued interest from the previous month will be distributed on September 20th.

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427

InRento team

2021-08-19

The project owner has begun an active work with the tenancy, currently the contracts are under review.

As a result one of the contracts had a rent increased by 10 EUR. This means, that the annual current return rises to 6.85%.

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427

InRento team