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€