Lithuanian crowdfunding startup, InRento, has achieved an impressive €15 million in investments since its inception. Specializing in real estate rental projects, the platform has maintained a flawless track record with no late or defaulted projects, and investors enjoy an average annual return of 12.43%.
Founder, Gustas Germanavičius, acknowledges that although InRento may not dominate the competitive alternative investment market, the platform prioritizes service quality. The thriving investor community and impeccable track record are a testament to this commitment.
The rental market is experiencing notable growth, mainly due to increasing Euribor interest rates, which have discouraged home purchases. This decline in homebuying, coupled with a burgeoning migrant population and the start of the school year, has driven the demand for rental housing in Lithuania’s major cities.
Germanavičius explains that with the growing accommodation needs, InRento primarily focuses on the residential and tourism sectors. He highlights that Vilnius, in particular, offers promising returns of 8% or higher for new apartments, which is notably higher compared to Western Europe.
With a robust community of over 17,000 investors, InRento is becoming an attractive financing alternative for buy-to-let developers, especially considering the surging interest rates. Germanavičius notes that prominent developers are increasingly seeking alternative financing solutions as they shy away from traditional banks. Rental managers could face interest rates from banks as high as 9-10% due to the Euribor surge. In contrast, InRento only requires monthly interest payments, with the principal repaid upon project completion.
While inexperienced investors have faced significant losses recently, InRento has maintained its record by making timely payments even with rising funding volumes. Germanavičius emphasizes the importance of understanding investment risks and highlights InRento’s unique offering of monthly interest payments. Additionally, the platform’s interest rates are linked to inflation, providing long-term investor protection.
Germanavičius stresses InRento’s accessibility, stating that renting has always been a lucrative investment avenue for Lithuanians. Recognizing economic volatility and the increasing burden of home loans, InRento offers an alternative for buy-to-let projects. With a minimum investment threshold of €500, the platform encourages potential investors to adequately assess the risks and rewards.
InRento ensures optimal investor satisfaction and service quality through rigorous project evaluation that focuses on rental flow, project owner reputation, and asset liquidity.
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