Reasons to invest in the project P6, Kaunas III:
The financed project is located in Kaunas Old Town;
Interest is paid monthly with an attractive annual return of 8% – 8.4%, plus an additional fixed annual capital gains return of +1.5% (paid at the end of the project);
Project owner is an experienced buy-to-let administrator with similar concept projects in other Lithuanian cities;
Fixed interest linked (indexed) to inflation;
Maximum loan-to-value (LTV) ratio for the whole project is 70%;
According to independent appraiser reports, the property’s value increased from EUR 274,000 to EUR 575,000 over 15 months.
InRento team presents a third stage of the buy-to-let project – P6, Kaunas III. The investment offer consists of a building located in Kaunas Old Town, at D. Poškos g. 6A.
The total financed area of this project is 332.88 m². The first stage, conducted 14 months ago, financed the acquisition of the property. Following the completion of the furnishing works, the second stage is now being financed.
According to independent appraiser reports, the property’s value increased from EUR 274,000 to EUR 575,000 over 15 months.
The increase in value was driven by the installation of room partitions with doors, painted walls and ceilings, as well as the implementation of a new water system, sewage system, heating, and ventilation systems.
As planned, the project owner has fully furnished 16 rooms, including shared areas such as showers, bathrooms, kitchenettes, and lounge zones. The property also includes laundry facilities and a self-check-in system.
This project is focused towards short-term rentals, the lower than average market price of the rooms is expected to generate a greater demand for these rooms.
The owner of the project is Room capital, UAB. The company's field of activity is the development and administration of short-term accommodation projects in Lithuania.
The owners of the company have experience with projects of similar concept. Currently, a similar buy-to-let project is successfully being managed in Vilnius Old Town – Bali House Vilnius, which has excellent reviews on the booking platform and 2023 occupancy rate was as high as 95%.
Investors will be paid an attractive fixed interest rate of 8% – 8.4% per annum, depending on the amount invested.
This project also has a fixed annual capital growth rate of 1.5% payable at the end of the project. This raises the total yield of this phase to between 9.5% and 9.9% annual return.
Please note that the mortgage for this project signed, thus the interest for this phase will start to accrue to the investors as soon as the money is actually disbursed to the project owner.
The maximum loan duration for this project is only 22 months.