EIKA real estate development company offers a new investment alternative with guaranteed 5 per cent annual return.Investors not only can acquire real estate, but also receive guaranteed monthly income from the rental of the housing. According to the company representatives, this is a new business service for those looking for reliable investment opportunities and alternatives, and having savings.
After purchasing the housing, based on the agreement with its owner, Eika commits to install individual finishes and find a tenant whose rent will comprise 5 per cent of the housing value per year.If the rental income is lower than the guaranteed return provided for in the contract, the company will compensate the loss of income.Duration of the guaranteed return on investment is 2 years. According to Martynas Žibūda, development director at EIKA, this is a new form of investment never offered by any other real estate company until now.
“We believe that this market innovation should, in particular, be of interest to individuals living not in Vilnius, or not in Lithuania, who are physically unable to take care of the housing, it’s installation or the search of tenants.This should also be relevant to people who want to dedicate all of their time to direct professional activities, but also look for opportunities to make investments yielding higher but guaranteed return”, M. Žibūda lists the advantages.
Most rent-attractive 1 or 2 bedroom apartments were selected for the investment.Investors can choose from more than 100 new apartments in five projects in Vilnius.During the purchase of housing, the individual housing installation project is agreed with the architect and the company then furnishes the apartment and prepares it for rent within two months.The fixed apartment decoration price might be different depending on the project, in which the buyer chooses to invest. It ranges from 390 euro per square meter in the budget class projects up to 1,000 euro in prestigious class apartments.
According M.Žibūda, if a client buys a new 50 square meter apartment in a building in Jeruzalė for 70 thousand euro, the furnishing and finish of such housing would cost about 20 thousand euro. “Therefore, the total value of the apartment could reach 90 thousand euro and the owner would recover least 4500 euro or 375 euro per month from the rent during the year. At the end of the guaranteed return period, the investor may choose to continue to rent or sell his housing”,says EIKA representative.
After purchasing the apartment, the investor can choose from the two tenants best suited for him, offered by EIKA.The apartment owner will not have to pay brokerage fees or place ads, looking for a tenant, or wasting his time for showing the apartment.The contract will be signed directly between the tenant and the owner.The owner will also get income directly from the tenant.
Investors can choose apartments in as many as five projects in Vilnius: EIKA namai Pilaitėje, Santariškių namai, Domino namai, Link parko, and Basanavičiaus 9A.