InRento is introducing a new buy to let investment opportunity located in Vilnius, the capital of Lithuania. The investment opportunity consists of four studio type lofts located: at Pramonės str. 141, Vilnius (referred to as 4SL, Vilnius).
This project is unique in that the owner will pay a fixed 7.3% annual interest (as a rental return). The project generates 550 EUR per month for investors, which is distributed proportionally according to the amount invested. Not all lofts are fully equipped at this time, but will be decorated as shown in pictures.
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 4SL, Vilnius:
Legal entity whose field of activity is the administration of the lease of premises. Investors are allocated a rental income of EUR 550 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 the 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 you press invest.
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.
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%.
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.
|Borrower's equity exceeds the amount of financing needed||1 / B|
|Borrower's last year's net profit is sufficient to cover the fixed-interest||1 / B|
|Borrower's Debt / Equity ratio||2 / C|
|Borrower's ability to repay liabilities in the past||-1 / A+|
|Property price comparison to a 3rd party valuation||0 / A|
|Property type||0 / A|
|Is there a tenant already||0 / A|
|Borrower's experience with rental properties||0 / A|
|Property occupany over the last 2 years (if it was rented)||2 / C|
|Will the property require renovation||2 / C|
|Micro-location||1 / B|
|Does the property have elevator if it's not ground floor?||1 / B|
|Does the property have dedicated parking slot near premises? (long-term rent)||0 / A|
|Property has been for sale for less than 1 year?||0 / A|
|Years since last renovation of the premises||-1 / A+|
|Total:||8 / B|
*InRento Risk rating is of an informative nature only and can not be considered investment advice. InRento is licenced and regulated by the Bank of Lithuania.