For sale
Service
Investment property
We present investment properties with a cash-flow model: gross and net yield, the mortgage payment, void periods and an exit scenario.
For investors buying property for rental income or capital growth
The problem
A yield that exists only in the listing
Investment property in Lithuania was sold for years on a single line: prices will go up anyway. While rates were near zero and prices were rising by double digits, that logic worked even when the property had been picked at random. Once the interest-rate environment changed, it became clear how many purchases had rested on hope rather than arithmetic.
The second problem is how the yield is calculated. Listings almost always quote the gross yield: annual rent divided by purchase price. What an investor actually receives is the net yield, after tax, building reserve contributions, insurance, repairs, void periods and the time spent managing it. The gap between the two figures is often a third.
Third, almost nobody talks about the exit. A property that is easy to buy is not necessarily one that will be easy to sell in five years. A ground-floor flat with no balcony on a noisy street lets beautifully, but its circle of buyers on the resale market is far narrower.
Where the money usually goes
- The advertised yield is calculated without tax or void periods
- The mortgage payment and interest-rate risk are left out
- The property is bought with no clear exit scenario
- The time a tenancy will take to manage goes uncounted
- New developments judged on their visualisations rather than on the district's rental data
- The portfolio is assembled at random, with no spread of risk
The solution
How we work
For every investor we begin by setting out an investment profile: how much of your own capital, what time horizon, how much management time you realistically have, and whether steady cash flow or capital growth matters more. Those answers decide whether we are talking about a one-bedroom flat in Šnipiškės or commercial premises with a long-term tenant.
Every property comes with the same set of figures: purchase price including all costs, a realistic rent based on tenancies signed in that district, gross yield, net yield after tax and costs, cash flow after the mortgage payment, and a sensitivity analysis — what happens if the rent falls 10 per cent or rates rise by a point.
Finally we talk about the exit. We consider who the property will appeal to in five and in ten years, how the district is likely to develop, and what the tax position will look like on a sale. It is the dullest part of the conversation and usually the most important.
What you get, specifically
- Defining the investment profile and goals
- Shortlisting properties on return and risk criteria
- A cash-flow model: gross and net yield, and the flow after mortgage payments
- Sensitivity analysis for rent and interest-rate changes
- District rental market and void data
- A review of the exit strategy and tax position
- Letting and managing the property after purchase
The process
The investment process
At every stage you know what is happening, who is responsible and when to expect a result.
- 01
Defining the investment profile
We talk through how much capital you have, how the purchase would be financed, your time horizon, your tolerance for risk, and how much time you can realistically give to managing it. Then we agree whether you are after cash flow or capital growth.
- 02
Market and segment analysis
We set the segments side by side: flats to let, townhouses, commercial units, warehousing. For each we give the typical return, how liquid it is, how much management it takes, and the main risks.
- 03
Property shortlisting
We shortlist specific properties from the open market and from closed offers, and check each one: documents, the condition of the building, the reserve fund, planned repairs and any construction nearby.
- 04
Calculation and comparison
For every property we build a cash-flow model and sensitivity analysis to the same structure, then compare them in a single table — so the decision is made on the numbers rather than on impressions.
- 05
Negotiation and purchase
We negotiate price and terms, and coordinate the financing, the document checks, the notarial transaction and the handover. On investment purchases we pay particular attention to deadlines and how payment is structured.
- 06
Going to market
We prepare the property to let, set the rent, select the tenant and draw up the agreement. From that point the property generates cash flow according to the model rather than to assumptions.
- 07
Portfolio review
Once a year we review how it has gone: actual return against forecast, indexation of the rent, refinancing options, and the decision on whether to hold the property or sell it.
Result
What you get
Instead of a feeling that “property goes up anyway”, you get a specific number and the assumptions holding it up. You know your net yield after every cost, what cash flow is left once the mortgage is paid, and what would happen if the market turned against you.
In practice this means fewer mistakes. Across our clients' investment properties the average net yield is around 4.6 per cent — less than the listings promise, but a figure that still holds in the third year, once voids and repairs are counted in.
- Average net rental yield
- 4,6 %Average net rental yield
- Typical planned holding period
- 5–10 yearsTypical planned holding period
- Scenarios calculated for every property
- 3Scenarios calculated for every property
FAQ
Frequently asked questions
The questions we hear at almost every first meeting. If yours is not here, write to us and we will answer it personally.
Gross residential yields in Vilnius generally run between 4.5 and 6 per cent, and net yields — after tax, building reserve contributions, repairs and voids — between 3.5 and 5 per cent. Commercial figures are higher, but so is the risk of losing a tenant. Any promise of 8–10 per cent with no extra risk should, in today's market, raise questions.
One flat in a better district usually yields less in percentage terms but is more liquid, easier to let and takes less management time. Several cheaper properties yield more and spread the risk of losing a tenant, but each of them wants attention. Which is right depends on whether your scarce resource is money or time.
A new-build flat has its advantages: lower running costs, a better energy rating, less risk of repairs in the next few years. The drawback is the higher purchase price, so the percentage yield is often lower than in an older building. Over a ten-year horizon the difference frequently evens out, because the older building will demand capital work.
Rental income is taxed either through personal income tax or under a business certificate, whose cost depends on the municipality. On a sale, income tax generally does not apply if the property has been held for more than ten years. For investment property that means the holding period has to be planned from the start — we always build the factor into the figures.
Yes. We can prepare the property for letting, set the rent, select the tenant, draw up the agreement and then manage the tenancy: renewal dates, indexation, day-to-day problems, coordinating repairs and returning the deposit. For most investors it is management time, not capital, that is the real constraint.
Buying with a mortgage generally needs a deposit of at least 15–30 per cent, depending on whether it is your first home or not. On top of that come notary and registration fees, likely renovation and furniture. In practice, a first investment flat in Vilnius usually calls for something like €40,000–60,000 of your own money.
We ask a simple question: who will find this property attractive in five years, and in ten. We weigh how wide the circle of buyers is, what is planned for the district, the age of the building, and whether the property has features that narrow demand — a ground floor, windows onto a busy street, an awkward layout. A property with a narrow circle of buyers has to yield more to compensate for the liquidity risk.
Related properties
Property related to this service
A few relevant properties from our portfolio. The full list, with filters, is in the catalogue.
Related services
What else you might need
These services usually go together — one transaction calls on several different areas.
Commercial property
Offices, retail, warehousing and production space. We count not square metres but the full cost to the tenant or the owner.
Find out moreProperty letting
We find a tenant who pays on time and stays longer. Screening, the agreement and a handover record — so letting is income rather than a worry.
Find out moreOff-market properties
Some of the best property never reaches the portals at all. We work discreetly — with sellers who want no publicity, and buyers who want no competition.
Find out moreEnquiry
The next step is a short conversation
Tell us your situation and your timescale. We are in touch within one working day, and the first consultation costs nothing and commits you to nothing.
- Your enquiry goes straight to the agent for this area — no need to explain it twice.
- You get an answer grounded in market data, not a general description of a service.
- For investors buying property for rental income or capital growth
Let us calculate your return before you buy
Tell us the budget you have in mind and the outcome you expect — we will prepare a comparison of segments and cash-flow models for specific properties.