A residential house in Trinapolio Street, Vilnius, Lithuania, is the focus of this real estate investment opportunity. The property, valued at €64,900, is being acquired by the project owner for further development. Renovated and refurbished at a cost of €150,000, with an additional €55,000 earmarked for post-acquisition renovations, the house is set to be a rental property generating a monthly income of €3,800, excluding VAT, starting from July 1, 2024.
The financing for this project stands at a maximum of €415,000, with €350,100 already secured. The funding is based on the current valuation of the property, ensuring a loan-to-value ratio of 69% LTV. As the project progresses, any additional financing rounds will only be initiated if the maximum LTV threshold is not surpassed, necessitating a new property valuation to maintain financial stability.
Investors in this venture can anticipate a price per share of €200, with an estimated minimum return of 11%. The repayment of the loan will be facilitated through refinancing or proceeds from the property's future sale, with interest payments to investors sourced from the developer's operational revenue.
By providing an opportunity to invest in a well-located and renovated property in Vilnius, this project offers a chance to participate in the real estate market with the potential for steady rental income and capital appreciation. The prudent financial structure ensures a balanced approach to funding, safeguarding investor interests while maximizing the property's value and income potential.
As the project progresses, the developer's commitment to enhancing the property's value and generating sustainable rental income underscores a long-term vision for this real estate investment. With a clear strategy for financing and revenue generation, this opportunity presents a compelling option for investors seeking exposure to the real estate market in Vilnius, Lithuania.