The current investment opportunity offers CROWDESTOR investors to make a secured loan to the development and construction of a semi-detached house with a total size of 232.4 m² on a land plot located in Garkalne district, Bukulti, Vecupes street 28, which is a 20-minute drive from the center of Riga. The land plot is debt-free and privately belongs to the owner of the Borrower company.
Current investment opportunity offers CROWDESTOR investors to make a loan with an 18% annual interest rate. The maximum target is EUR 35 000,00. The loan is secured with first-hand collateral on the real estate. The funds will be used to partly refinance the project and further construction of the building.
The activity of customers in the private house segment is continuously increasing. Buyers are mainly interested in modern high-quality detached houses in places with good and tidy surroundings and great infrastructure, but such offers at an appropriate price to the market situation are limited. The most in-demand houses are with a total area of around 250 m² with a plot of land of 1000-1200 m².
Borrower: | SIA “AMATUM”, registration number 40203247830 |
Maximum target: | 35 000 EUR |
Loan period: | 12 months |
Interest rate: | 18 % p.a. |
Repayment: | Interest and principal in full at the end of the Loan Term |
Collateral: | The loan is secured by first-hand collateral on real estate on Garkalne district, Bukulti, Vecupes street 28 |
Location: | Latvia |
Remember - interest payments start calculating from the day you make your investment!
Project: Semi-detached house
Address of the property: Garkalne district, Bukulti, Vecupes street 28
Cadaster No. of the property: 80600020614
Description of the land plot: The real estate to be assessed includes a plot of land with a total area of 601 m² and cadastral number 8060 002 0614, which is a possible future condition after the construction of the semi-detached house will be in accordance with the usage agreement plot A with an area of 300.5 m² and B with an area of 300.5 m²
The technical planned parameters of the building: 232.4 m²
Type of use: The building will be used as a two-family residential house with two separate parts of the house.
The property is free of the following encumbrances:
Funds raised in the first fundraising phase: EUR 60 000,00
Total funds raised in CROWDESTOR: EUR 148 000,000
Valuation of the object: EUR 270 000,00
Total investments during development and construction: EUR 175 000,00
LTV after commissioning: 55%
The real estate under assessment is located in Garkalne district, Bukulti. It is about 20 km or 30 minutes drive to the center of Riga. Public transport to Riga city center and other districts is provided by bus routes. The nearest stop of the route is located 900 m away.
In general, the location of the evaluation object in Garkalne region, Bukulti is considered as favorable.
Description of the semi-detached house in a possible future technical condition
The appraisers presume that high-quality materials will be used in the construction works, the works will be performed in accordance with the submitted sketch and visualization of the project. Construction works will be performed in accordance with the project approved by the legislation of the Republic of Latvia in the Land Register Division to one natural or legal person. The building will be built in accordance with technological requirements and in high quality.
As no construction estimates were submitted to the appraiser, the appraiser assumes that the technical condition of the building's basic structural elements, interior decoration, and utilities will be of the highest quality.
The building will be used as a two-family residential house with two separate parts of the house.
The layout of the building, the area of the premises, and the materials used are in accordance with modern requirements. The technical condition of the building is generally excellent.
The technical planned parameters of the building are (according to the information submitted by the customer, see floor plans):
Total area of premises, m² |
232.4 |
Planned explication of the premises (according to the information submitted by the customer, see floor plans):
Floor |
Name |
Area, m² |
1st floor * |
Living rooms, kitchens, toilets, stairs,
rooms, corridors, auxiliary rooms |
120.4 |
2nd Floor* |
Bedrooms, bathrooms, rooms, auxiliary rooms |
112.0 |
*outdoor spaces on the 1st and 2nd floor - terraces, hallways, and loggias are provided in accordance with the floor plans, but the area is not shown.
Planned explication of rooms A and B of the semi-detached house (according to the information submitted by the customer, see floor plans):
Floor |
Name |
Area, m² |
1st floor |
Living rooms, kitchens, toilets, stairs, rooms, corridors, auxiliary rooms |
60.2 |
2nd Floor |
Bedrooms, bathrooms, rooms, auxiliary rooms |
56 |
Basic structural elements of the building and their technical condition:
The basic structural element |
Constructive solution |
Technical condition |
Basics |
Reinforced concrete |
Excellent |
Exterior walls and load-bearing partition |
Wooden frame |
Excellent |
Non-load-bearing partitions |
Plasterboard |
Excellent |
Mezzanine floor |
Timber |
Excellent |
Exterior wall decoration |
Plaster, painting, wooden boards |
Excellent |
Roof construction |
Multi-sloping wooden rafters construction |
Excellent |
Roofing |
Metal tiles |
Excellent |
Rainwater drainage |
Galvanized tin |
Excellent |
Window boxes |
PVC, wooden package |
Excellent |
Exterior doors |
Wood |
Excellent |
Interior doors |
Wood |
Excellent |
Stairs |
Wood |
Excellent |
Interior decoration of rooms:
The basic structural element |
Technical solution |
Technical condition |
Floors |
Tiles, laminate |
Excellent |
Walls |
Wood panels, painted, tiles |
Excellent |
Ceiling |
Painted |
Excellent |
Sanitary appliances in the bathroom and toilet:
Name |
Modern requirements inappropriate |
Meets modern requirements |
Technical condition |
Bath |
|
x |
Excellent |
Sink |
|
x |
Excellent |
Water mixers |
|
x |
Excellent |
Toilet bowl |
|
x |
Excellent |
Description of engineering communications:
Name |
Centralized networks |
Local area networks |
Power supply |
X |
|
Heat supply |
|
X Gas heating system |
Water supply |
X |
|
Sewerage |
X |
|
Gas supply |
X |
|
Low voltage networks |
Telephone, cable TV, internet |
|
Ventilation |
|
Natural and forced |
Other improvements |
|
Alarm system |
Description of the real estate industry in Latvia today
In the private house segment, customer activity has remained unchanged. Buyers are mainly interested in modern high-quality detached houses in places with good and tidy surrounding infrastructure, but such offers at an appropriate price to the market situation are limited. The most in-demand are houses with an area of up to 200-250 m² with a plot of land of 1000-1200 m².
There is an increase in the activity of the housing market, mainly due to the more favorable loan conditions offered by banks, as well as buyers are focused on the possibilities offered by the Latvian state support program "Altum".
From 1st of March, 2018, a guarantee for the purchase of a home can also be received by persons who have acquired secondary professional or higher education and who do not exceed 35 years of age - young specialists.
Buyers very rationally evaluate the optimal size of the house, providing about 50 to 70 m² for each inhabitant of the house. At present, houses with excess space are less liquid. Single-family houses up to 10-15 years old in the nearest parishes of Riga, depending on the area, technical condition, location, communication, and infrastructure provision, cost from 600 to 1300 EUR / m².
The increase in the number of transactions is observed for all types of building plots, as well as for apartments and private houses. In general, no negative changes in the number of transactions have been observed in any segment either in Riga or in the regions around it. The only segment where the number of transactions has decreased is agricultural land, where the volume of transactions has decreased for the third year in a row.
In the most demanded places, buyers are most interested in completed, detached houses with an area of 140-200 m² and a price up to EUR 200,000, as well as high-quality houses at a price up to EUR 350,000 and more. The supply that meets the requirements of buyers at a price adequate to the market situation is still limited. The average prices of detached houses have changed differently in different places in Riga and its municipality during the last two years.
In places demanded by buyers, average house prices have risen faster, while in others they have risen slower or remained unchanged. Sales prices for residential houses in a good technical condition in the parishes closest to Riga exceeds 150,000 EUR, while closer to the Riga border it can be up to 170,000 - 350,000 EUR.
Infrastructure is still a very important factor when choosing housing - roads, public transport, schools, kindergartens, and shops nearby are very important to buyers. In further parts of the Riga district, the interest is mostly for houses from 45,000 to 90,000 EUR or in the territories of former horticultural companies for properties around 25 - 55,000 EUR. Buyers are still consulting with banks in search of better credit conditions when purchasing a property.
Houses built in Soviet times and earlier, cost 450-900 EUR / m², depending on the technical condition and other factors influencing the value. Analyzing the land register data, the evaluators find that in the last year, in general, a large proportion of transactions have taken place, both housing (apartments and private houses) and commercial properties in the nearest parishes of Riga, where the buyers are local citizens.
The amounts of transactions with newly built private houses in the nearest parishes of Riga - Garkalne and Ādaži counties are in the range of 120,000 - 400,000 Eur.
The amounts of transactions with newly built semi-detached houses and row houses in the nearest Riga parishes - Garkalne and Ādaži counties, range from 100,000 to 160,000 EUR.
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