4% Leaseback Program

Rental Yields

Based on our extensive knowledge of the long-term let market, via our in-house leasing agency for long-term lets “Rentals Montenegro” we can predict the yield that your future apartment will provide.

The apartments that we are building under the brand “Mini Condos™”, have been designed in great part based on the requirements expressed by our long-term lets clients who are looking for a higher quality of construction, modern design and furniture, spacious bathrooms and kitchen space, good internet connection, parking space, and a well organised maintenance of the building.

For these apartments, we can predict an effective yield between 7% and 9%

Guaranteed income “leaseback”

We offer a guaranteed leaseback yield for all our apartments, with the following return (net of annual property income taxes).

Special “Leaseback – Cashback” offer

Under the “leaseback-cashback” offer, we pay the leaseback upfront for the full period, with a discount of 25% on the lease. For ex. 4% leaseback becomes 3% when paid upfront.

For example, an apartment that is worth 150.000€ and can be purchased for only 105.000€ with a 10 years leaseback-cashback option.

The full Kitchen and Furniture pack + small appliance pack are free of charge.

  • The yearly leaseback is: 150.000€ x 3% = 4.500€
  • 10 years leaseback (immediate cash return) = 45.000€
  • Purchase price to pay: 150.000€ – 45.000€ = 105.000€

5 years leaseback-cashback for the value:

  • Apartment + 50% of equipment’s packs: 150.000€ + 8.879,5€ = 157.879€
  • Yearly leaseback: 157.879€ x 3% = 4.737€
  • 5 years leaseback (immediate cash return) = 23.685€

Purchase price to pay: 157.879€ – 23.685€ = 134.194€

Cancellation policy

In case the Owner wishes or needs to terminate the Leaseback or Leaseback-Cashback Contract before the term (for ex. in case of a resale of the property), a penalty fee is paid to the Lessee.

1/ In case of standard leaseback the penalty equals the total amount of the remaining leaseback rents for the 3 years minimum period + 50% of the value of leaseback for the extended period after 3 years.

For ex. Studio 60.000€ with 5 years signed leaseback contract (2.400€/year). If terminated after 2 years, the penalty is 3-2=1-year LB + 50% of 5-3=2 years LB= 2.400+2.400=4.800€

2/ In case of “Leaseback – Cashback Combo” the penalty equals 1.5 times the value of the leaseback for the remaining period.

For ex. Studio 60.000€ with 5 years leaseback-cashback signed contract (value: 1.800€x5=9.000€), if terminated after 2 years, the penalty is 1.5x(5-2)x1.800€ = 8.100€

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