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Real estate development company Eika offers a new investment alternative with a guaranteed 5 percent annual return.
Real estate development company Eika offers a new investment alternative with a guaranteed 5 percent annual return. Investors will not only purchase real estate, but also receive guaranteed monthly income from housing rental. According to company representatives, this is a new business service intended for people looking for reliable investment opportunities and alternatives and those who have accumulated savings.
After purchasing a home, the company “Eika” undertakes, according to the contract signed with the owner, to install individual finishing and find a tenant whose annual rent would be 5 percent. of the value of the home. If the rental income is lower than the guaranteed return provided for in the contract, the company will compensate for the unearned income. The duration of the guaranteed return on investment is 2 years. According to Martynas Žibūda, Development Director of “Eika”, this is a new investment method that no real estate company has offered so far.
“We believe that this market innovation should primarily interest people living outside Vilnius or outside Lithuania who do not physically have the opportunity to arrange for housing or find tenants. It should also be relevant for people who want to devote all their time to their direct professional activities, but at the same time are looking for opportunities to invest in instruments with a higher but guaranteed return,” M.Žibūda lists the advantages.
The most attractive 1 or 2-room apartments for rent have been selected for investment. Investors can choose from more than 100 new apartments in five projects in Vilnius. When purchasing a home, an individual home furnishing project is coordinated with an architect, and the company furnishes the apartment and prepares it for rent within two months. Depending on the project in which the buyer chooses to invest, the fixed price for finishing the apartment varies, ranging from 390 euros per square meter in economy-class projects to 1,000 euros for prestigious-class apartments.
According to M. Žibūda, if a person purchases a newly built 50 square meter apartment in Jerusalem for 70 thousand euros, the cost of furnishing such a dwelling with all the furniture would be about 20 thousand euros. “Thus, the total value of the apartment would reach 90 thousand euros, and the owner would recover at least 4,500 euros from the rent per year, or 375 euros per month. After the guaranteed return period ends, the investor can continue to rent or sell the dwelling,” says the Eika representative.
After purchasing a home, the investor will be able to choose from two tenants who best suit him, which will be offered by “Eika”. The owner of the apartment will not have to pay a brokerage fee or place advertisements looking for a tenant, or waste time showing the apartment. The lease agreement will be concluded directly between the landlord and the tenant. The owner will also receive income from the tenant directly.
Investors can choose apartments in as many as five projects in Vilnius: “EIKA namai Pilaitė”, “Santariškių namai”, “Domino namai”, “Link parko”, “Basanavičiaus 9A”.
About the Eika group of companies
Founded in 1992, the company “EIKA” is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other purpose building projects, creating a new quality of life and work. The company has already built more than 3,000 apartments and 270 thousand square meters of buildings. “Eika” has been awarded many times as the best real estate developer in Lithuania, and the company’s projects “Santariškių namai” and “EIKOs namai Pilaitė” have also become the best in Lithuania.
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