The “InRento“ team is introducing a new buy to let investment opportunity located in Vilnius, the capital of Lithuania (referred to as M8, Vilnius I). The investment opportunity consists of five studio-type lofts located: at Meistrų st. 8, Vilnius.
The project owner will pay a fixed 7-7.5% annual interest (as a rental return) depending on the amount invested. One of the five lofts is currently fully equipped with new furniture and household appliances. The installation of the last four lofts will be similar to the loft already completed. Rental prices for these types of apartments in Vilnius are around 280-360 EUR per month.
This project has a fixed percentage of capital gains. Investors earn a fixed 2% return on capital gains per year, which raises the overall return of the project to at least 9%.
The loan term is 36 months.
Reasons to invest in the project M8, Vilnius I:
Financial terms of the investment:
InRento investors are 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.
This project will be funded in two phases:
The first (M8, Vilnius I) will be funded by EUR 87,500 amount;
The second (M8, Vilnius II) will be funded by EUR 42,500 amount.
The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalments ("Instalment"), with the return for each successive Instalment being added to the calculation of the return. The Instalment shall be considered as per one calendar year. A fixed increment of 2% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 2% applies. If the Loan is repaid after two years, a fixed return of 4% applies. If the Loan is repaid after three years, a fixed return of 6%. The profit margin is payable whether or not the Loan is repaid on sale of the property.
Up to 4999 € - the annual return is 7% + 2%.
5000 € – 14999 € - the annual return is 7.1% + 2%.
15000 € – 29999 € - the annual return is 7.2% + 2%.
30000 € – 49999 € - the annual return is 7.35% + 2%.
50000 € and more - the annual return is 7.5% + 2%.
Rental income (interest):
Rental income (interest) is paid to investors on a monthly basis (on the 12th day of the month). If the 12th day is a non-working day, then the next working day.The interest will be paid out the next month on the 12th after the mortgage is placed. The interest is calculated after the mortgage is being placed.
The project owner (borrower)
MB “Mikrobiurai“ – is a company serving as a special vehicle for “InRento“ investments. The CEO of the company is Linas Ginaitis, who specializes in the sale of residential housing, lofts, commercial property and land plots. Linas Ginaitis also has experience in developing massive residential plots and micro-lofts/ micro-offices projects.
Frequently asked questions
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.
Yes! No matter what is the situation with the tenancy, the project owner is obliged to distribute fixed-interest to the investors.
When the property is sold at a higher price than it was acquired, the capital growth will be distributed among investors, project owner and InRento. The project owner assumes potential loss if the property is sold at a lower price. You can find more details by scrolling up this page.
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: There is a risk that the asset can lose a tenant and it can take time to find replacements, which can have impact on the property's cash-flow.
|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 / B|
|Property price comparison to a 3rd party valuation||0 / A|
|Property type||0 / A|
|Is there a tenant already||2 / C|
|Borrower's experience with rental properties||0 / A|
|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|
|Years since last renovation of the premises||-1 / A+|
|Total:||10 / C|
*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.
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.
We would like to inform you, that the mortgage on the project – M8, Vilnius assets have been successfully placed (the document is attached in the documents section). The interest for the project will be distributed next month.
If you have any questions, do not hesitate to contact us at firstname.lastname@example.org or call us at +37069347427.