Investment apartments changed hands quickly: attractive returns and potential for appreciation

Horisontti Group assisted the client in selling its 16-apartment investment portfolio in Lahti.

The client's goal was to sell all apartments and divest from the residential investment business. In cooperation with Horisontti Group, this goal was successfully achieved.

The following measures were taken during the sales process

• Apartment tour and mapping of development measures: The condition and potential of each apartment was assessed. Necessary renovations and improvements were planned with cost-effectiveness, apartment comfort, and rental potential in mind.
• Apartment renovations and rentals: The yield percentage plays a key role in the sale of investment apartments. Therefore, necessary renovations were carried out in some properties in order to rent out the apartments at a good rental level. The renovations focused on practical and sustainable solutions.
• Rent increases: Rents for low-rent apartments were raised to market levels in order to make the rate of return attractive to investors. In line with market conditions, the expected rate of return for apartments in Lahti had risen to over 10%.
• Sold vacant: Two properties were sold vacant directly to property flippers because they had significant potential for appreciation and there was a sufficiently large margin for flipping.
• Multiple properties for small investors: Three apartments in the same building were sold as a package to a small investor.

Results

• All 16 apartments were successfully sold.
• The client achieved their goal of divesting their real estate investments.
• Investors were offered attractive rates of return exceeding 10%.
• Property flippers benefited from good potential for value appreciation.
• A small investor acquired three apartments in the same housing company at once.