46 Lofts, Kaunas I
Reasons to invest in the project 46 Lofts, Kaunas I:
- The financed property is located just 5 minutes by car from Kaunas Žalgiris Arena;
- The plan is to create 46 modern loft-style apartments for contemporary city living;
- Interest is payable monthly with a very attractive annual return of 10% – 10.5%, plus additional fixed annual capital gains of 1.5% (payable at the end of the project);
- The project owner specialises in real estate development, construction and rent for more than 10 years;
- Projected rental income between EUR 9,000 and EUR 24,000 per month;
- The project has a maximum loan-to-value (LTV) ratio of 70%;
- The independent appraiser has valued the financed property at EUR 1,216,000.
The InRento team presents a new buy-to-let project: 46 Lofts, Kaunas I. The investment offer consists of a 1,449 m² building located just 5 minutes drive from Kaunas Žalgiris Arena, at Drobės St. 11, Kaunas.
The project owner plans to create 46 modern loft-style apartments designed for contemporary city living. The average size of the apartments will be 32 m². The project owner plans to sell part of the apartments and rent the other for short-term and long-term rentals.
The average price per m² is expected to be below the market average for similar locations in Kaunas, at EUR 2,153. The sale prices of the apartments will start from EUR 39,000 and up to EUR 109,000, making the property affordable for lower-income earners and investors buying the property as a rental investment.
Depending on the sales of the project and the number of unsold apartments, the project owner expects to generate between EUR 9,000 and EUR 24,000 of rental income per month. The rental income will provide a steady cash flow, helping to cover the monthly interest payments and other potential costs associated with managing the property.
The building permit for the renovation has been issued, and construction work has started. Currently, the facade of the building is being renovated with new windows and communications.
The project's owner specialises in property development, construction and rent for over 10 years. The main activities include constructing and renting residential and commercial buildings, ensuring high project quality and long-term value retention. The project owner has completed several projects, including a few in Kaunas – Bernardinų Plytinės St. 27 and M. Riomerio St. 35A.
Investors will be paid a fixed interest rate of 10% – 10.5% per annum, depending on the amount invested. This project also has a fixed annual capital gains of 1.5%, payable at the end of the project. This raises the overall yield of the project from 11.5% to 12% annual return.
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 1.5% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 1.5% applies. If the Loan is repaid after 24 months, a fixed return of 3% applies. If the Loan is repaid after 36 months, a fixed return of 4.5% applies.
The profit margin is payable whether or not the Loan is repaid on the sale of the property.
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Kaunas Lithuania