InRento team presents the fourth stage of financing of the buy-to-let project – V23, Birštonas IV. The investment offer consists of a boutique hotel in the Lithuanian resort town of Birštonas, located at Vytauto str. 23.
The property has an area of 431.45 m² and consists of eight separate apartments, five studio apartments, one two-room apartment, one three-room apartment with a terrace, and the last one is a three-room apartment with a swimming pool and sauna.
Over a period of more than six months, the property has been stripped of redundant ceiling and floor coverings, new partitions (units) have been created and cadastral measurements have been carried out. The renovation of the façade is planned for spring.
In order to increase the yield and the rentable area, further renovation of the apartments is planned, which will also include interior fitting-out works to make the property suitable for short-term rentals.
Currently, all tenants in the property have moved out due to ongoing construction works. The owner of the project is aiming to complete the construction works before the summer season and to start hotel operations. The project owner is currently successfully managing a hotel in Biržai and Vievis.
According to the reports of an independent property appraiser, since December last year, the value of the financed project has increased from EUR 404,000 to EUR 601,000.
Investors will be paid a fixed interest rate of 7.2% to 7.61% per annum each month, depending on the amount invested. In January this year, the interest on this project was indexed to the euro zone consumer price index.
The project also has a fixed annual capital growth rate of 2.5% payable at the end of the project. This raises the total yield of this phase to between 9.7% and 10.11% annual return.
The project also has a Timeshare, those investing from EUR 5,000 and up will have the opportunity to book a night's accommodation and stay for free. More information below.
Please note that the mortgage on this project has already been signed, so the interest on this stage will start to accrue to the investors as soon as the money is actually disbursed to the project owner.
At the same time, we invite you to take a closer look at Birštonas.
This project has a fixed annual return on capital gains –
The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalment ("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 2.5% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 2.5% applies. If the Loan is repaid after 24 months, a fixed return of 5% applies. If the Loan is repaid after 36 months, a fixed return of 7.5% applies. If the Loan is repaid after 48 months, a fixed return of 10% applies. The profit margin is payable whether or not the Loan is repaid on the sale of the property.
Please be informed that according to the updated Special Terms and Conditions of the loan agreement, all investors who have invested more than EUR 5,000 in the project – V23, Birštonas (regardless of the financing stage) have the opportunity to stay free of charge at this hotel.
Investors investing EUR 5,000 or more will receive one night's stay, while those investing EUR 15,000 or more will receive three nights.
We would like to inform you that the mortgage on the project – V23, Birštonas I asset, has been successfully placed (the document is attached in the documents section).
The interest for the project will be distributed next month.