Leaseback - Cashback

The Leaseback – Cashback program is designed to significantly reduce the upfront cost of purchasing a property with us.

Guaranteed Rental Income: Mini Condos (the developer/seller) becomes your tenant for a fixed period (usually 3 to 10 years), guaranteeing a rental income regardless of whether the unit is completed and/or rented out.
Cashback: Instead of paying the rent monthly, the developer pays the total guaranteed rental income for the entire contract period UPFRONT, and this amount is given to you as a cashback which is immediately deducted from the property’s purchase price.

- Rental Rate: The guaranteed annual rental income under the Leaseback – Cashback option is typically 3% of the cash price of the real estate (this is generally a discounted rate compared to their “Standard Leaseback” which may be 4% but is paid monthly, not upfront).
- Price Reduction: The total purchase price is reduced by the sum of the annual guaranteed rents for the contracted period (e.g., 3% per year for 10 years equals a 30% reduction from the initial cash price).

Example:
- Property Cash Price: €139,000 (1 bedroom house in Kolasin)
- Annual Leaseback (3%): €4.170
- 10-Year Leaseback-Cashback: $10 \text{ years} \times €4,500 = €45,000$
- Price You Pay: $€150,000 - €45,000 = €105,000$

Reduced Initial Investment: This is the biggest draw—you effectively buy the property for a much lower price.
Guaranteed Income Upfront: You receive the financial benefit of the guaranteed rent immediately as a discount.
Hassle-Free Ownership: The developer manages the unit and handles the rental, covering contingencies (like vacancies), though you remain responsible for certain recurring costs like property tax and condominium charges.
Immediate Financial Leverage: By reducing the cost, it can make it easier to afford the property or to allocate funds to other investments.

Contract Term: The contract is typically for a period between 3 and 10 years.
Usage Rights: Since the developer is your tenant, your personal use of the property is limited during the leaseback period, and/or it is subject to the terms of the lease.
Taxes and Fees: While the developer often covers the rental income tax, the owner (you) is usually responsible for annual property ownership tax and condominium charges (maintenance fees).
Early Termination Penalty: If the owner wishes to terminate the contract early (e.g., to resell the property), there is a penalty fee, often calculated as 1.5 times the value of the leaseback for the remaining period.
Furniture/Kitchen: The program includes the full furniture pack with a 30-100% discount as an added incentive.