The project’s annual interest rate reaches 9.47%*. Even if the apartments are not leased, investors will receive a fixed 3% annual interest rate. The extra interest is calculated based on historical results demonstrated by premises administered by Houseys. Payments will be made to investors every month after collecting rent and paying operational costs. If the project generates greater returns, all the surplus gains (after-tax) will go to the project’s investors. The real estate is sold at the end of the project’s duration, and 50% of the real estate capital appreciation is paid to the project investors.
“We aim for our platform to find the most suitable offers for every investor and, as time passes, we observed a need among investors for a safer investment. Thus, we decided to cooperate with Houseys and offer investors an even safer investment option – buy to let,” Nordstreet Chief Risk Officer Jonas Izokaitis celebrated.
As the sum financed by investors will be directed toward the acquisition of real estate, the platform offers investors the option of starting a real estate letting business and earning from capital appreciation. In addition, investment in small sums starting from 50 euros is also possible.
The main advantages to such services are the safety and return on investment. Unlike business loans with real estate collateral, buy to let investments are held to be lower risk because the amount financed by investors is allocated to the acquisition of real estate. The investment earns passive income from rent, and if the real estate is not rented, fixed interest rate is paid.
The loan recipient is SIA Riga Lacplesa 24. The property purchased by the company is currently being fully furnished by the company selling the property. Once the property is furnished to the agreed-upon purchasing condition, SIA Riga Lacplesa 24 will purchase the premises and begin renting them.
In order to offer the largest return on investment from rent for investors, the property administration will be transferred to Houseys, who will handle the short-term property letting, with all the operational reports being relayed to investors. In addition, Houseys’ expertise, technical equipment, and experienced team will ensure optimal premise accommodation and appealing project returns to investors.
While the project’s developer is newly established company, its shareholder team has vast experience. The company’s shareholder Tomas Grižas is the head and founder of the real estate administration company Houseys. The company is one of the leading short-term letting administration companies in Lithuania, which has expanded its operations into Latvia. These competencies will ensure that Nordstreet investors will gain the most profitable opportunity to put their funds to work.
All investment return assumptions are based on available rental and occupancy statistics for Houseys in Riga, as the company currently manages similar property in the Latvian capital.
Of course, just like every investment project, this one also holds the risks and conditions typical of real estate acquisition and letting, so Nordstreet advises investing responsibly.
*It consists of a fixed annual interest rate of 3% and an average 6.47% variable annual interest rate for apartment rentals.