Investment Property in Kaunas

Invest in Real Estate in Kaunas

Investment Property in Kaunas
Investment Property in Kaunas

Kaunas property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Kaunas .

Search Map of Kaunas Investment Real Estate

Kaunas (; Lithuanian: [ˈkɐʊˑnɐs] (listen); also see other names) is the second-largest city in Lithuania after Vilnius and an important centre of Lithuanian economic, academic, and cultural life. Kaunas was the largest city and the centre of a county in the Duchy of Trakai of the Grand Duchy of Lithuania and Trakai Palatinate since 1413. In the Russian Empire, it was the capital of the Kaunas Governorate from 1843 to 1915.

During the interwar period, it served as the temporary capital of Lithuania, when Vilnius was seized and controlled by Poland between 1920 and 1939. During that period Kaunas was celebrated for its rich cultural and academic life, fashion, construction of countless Art Deco and Lithuanian National Romanticism architectural-style buildings as well as popular furniture, the interior design of the time, and a widespread café culture. The city interwar architecture is regarded as among the finest examples of European Art Deco and has received the European Heritage Label. It contributed to Kaunas being named as the first city in Central and Eastern Europe to be designated as a UNESCO City of Design. Kaunas has been selected as the European Capital of Culture for 2022, together with Esch-sur-Alzette, Luxembourg and Novi Sad.

The city is the capital of Kaunas County, and the seat of the Kaunas city municipality and the Kaunas District Municipality. It is also the seat of the Roman Catholic Archdiocese of Kaunas. Kaunas is located at the confluence of the two largest Lithuanian rivers, the Nemunas and the Neris, and is near the Kaunas Reservoir, the largest body of water in the whole of Lithuania.

As defined by Eurostat, the population of Kaunas functional urban area, is estimated at 383,764 (as of 2017), while according to statistics of Kaunas territorial health insurance fund, there are 447,946 permanent inhabitants (as of 2022) in Kaunas and Kaunas district municipalities combined.

The financial stability of Kaunas has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Kaunas

 

Renting out your Kaunas buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Kaunas are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kaunas and be prepared to change your initial outlook.
  • Thoroughly research the Kaunas location with a special emphasis on fringe areas outside the main Kaunas metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Kaunas.
  • Ensure that your target investment property in Kaunas appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Kaunas provides the secure knowledge that your money is working harder than it would in a local Kaunas bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Kaunas, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kaunas property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kaunas

Flipping property in Kaunas

 

Flipping property is when we advise clients to buy a Kaunas property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Kaunas market has a time to react to the renovation.

 

The Flipping Strategy in Kaunas

 

Investment property flipping in Kaunas is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Kaunas real estate investments are sometimes referred to by professionals as ‘distressed’ Kaunas real estate.

 

What is distressed Kaunas property:

 

  • Kaunas property in need of renovation
  • Kaunas real estate with a change of purpose and use
  • Oversold Kaunas property
  • Bank repossessions in Kaunas

Put simply, long term investors in Kaunas purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Kaunas investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kaunas property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Kaunas use a minimum profit value of 22% when looking at potential Kaunas projects.

 

The reason for this is because there are lots that can go wrong in Kaunas property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Kaunas

 

Property Secured Investments is a Private Equity fund that invests in Kaunas and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Kaunas

For luxury property investors hoping to add a superb property in Kaunas to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Kaunas, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Kaunas should be entrusted to only the highest-quality agency.

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