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We are back with the second edition of our insider updates. And this week’s guest is from Latvia – Bauskas development project. In this blog article, You will find out the latest updates about Bauskas development project. Also, see the pictures from the very heart of construction work.
Key facts about the project:
- The apartment building in a green district and close proximity to shops and transportation lines;
- Total yield – 13% (+1% on investments above 5000 EUR)
- LTV – 67%
- Collateral – 1st rank mortgage;
- Duration – 12 months;
- Payment frequency – Monthly interest payments
- Provided by an experienced international developer, who has finished more than 10 residential complexes and 2583 apartments;
Read the full project description here.
What is going on in Latvia?
According to an economist with Citadele Bank Mārtiņš Āboliņš, Latvia succeeded in overcoming the first wave of the pandemic more successfully than other European Union (EU) countries. The country itself is in a strong position according to many economic indicators. The Economist states that despite the initial good news, there are doubts regarding the uncertain future of the virus spread. However, there is hope that thanks to previous experience and Latvia’s strong position compared with other countries, a second flare-up may be easier to overcome.
The money is coming
On 21 July, in Brussels, at the conclusion of one of history’s longest summits of leaders of the EU member countries, an agreement was reached both on the next multiannual EU budget and the European Economic Recovery Fund. As a result, the EU will provide more than 10 billion euros for the development of the Republic of Latvia. According to Latvian Prime Minister Krišjānis Kariņš, the available European funding will bring the greatest added value to Latvia. If it will be invested wisely, of course. The government will implement improvements in various areas such as education, health care, the taxation system and others. Also, the agreement provides funding for the implementation of the Rail Baltica project. It is a greenfield rail transport infrastructure project which will connect 5 EU countries – Poland, Lithuania, Latvia, Estonia and Finland.
Over the next seven years, almost 10.5 billion euros will be available for the development of the Latvian economy. Compared to the current EU multi-annual budget for the period from 2014 to 2020, it will make a 39% increase.
How is Real Estate market feeling?
In regards to the real estate market, the updates are following. The Baltic Course reports that, compared to May 2019, the number of real estate transactions in Riga decreased by 43% this May. In general, investors who invested in Baltics real estate are benefiting, as average prices continue to rise. Currently, the total number of real estate transactions in the Baltic capitals is growing. And current forecasts suggest that higher activity can be expected in August and September.
Considering investment options in Baltics Real Estate? Take a look at our 4 currently available properties.
Also, soon are expected the amendments to the National Real Estate Cadaster Law and the Law on Immovable Property Tax, which provide for the abolition of the tax for primary homes worth up to EUR 100,000. The Justice Minister Janis Bordans reports that this would mean, for instance, property tax on a primary home with a cadastral value of EUR 80,000 would be zero euros, but for a home with a cadastral value of EUR 120,000, the property tax would be calculated from EUR 20,000.
Updates on Bauskas development project for 03.08
After the city of Riga has approved all the permits, the construction works began.
During the last couple of weeks, the team of developer did the following works:
- Renewed construction pit;
- Made an entrance for underground parking;
- Levelled the basis of construction pit and poured 400 m3 of concrete for a basis;
- Polished the basis and started to create foundation for the walls;
- Created elevator and drain shafts;
Also, we have received from our developers a 3D visualization of the whole project. Wondering how Bauskas development loan will look like after it receives full funding? Let’s take a look.
As of today, we launched two stages of funding, where the latest is currently funding. You can still become a part of this development project and start earning 13% per annum. Don’t forget about our 2% cashback campaign which will give You 2% back on Your investments over EUR 500. More detailed information is available here.
Please, see below the pictures from the construction fields:
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