The project Colocation Nantes by Meute

Review of the project Colocation Nantes by Meute

Review's score :

This review is proposed by Sébastien on 10/12/2023

⏰ The project starts on 12/12/2023 12h00
💰 The estimated rate of return is 5.66% per year.
⏱ The duration of the project is ∞
💼 Minimum amount to invest is 200€

🤖 Review's summary

Analysis of the Colocation Nantes project at Meute

The project is an investment in a 100m2 apartment in colocation with 5 tenants located in Nantes. The goal is to finance the property with a total amount of EUR 320,000. The distribution of returns is in the form of capital in fine and monthly coupons. The minimum investment required is EUR 200, and the duration is indefinite.

Strengths:

The project offers a yield of 5.66%, which is higher than the average yield in the area (5.2%).
The yield is also higher than the average yield of previous projects at Meute (5.49%).
There will be 5 tenants in the colocation after the renovation works.
The acquisition price of EUR 190,000 is below the average price in the neighborhood (EUR 2,552/m2) and within the price range (EUR 1,912-3,828/m2).
The property will benefit from a 5th bedroom, a 2nd bathroom, and moderate renovation.
The location of the property is in a residential area with nearby amenities such as grocery stores and doctors. It is also well-connected to public transportation.
The level of condominium charges is reasonable, representing 10.6% of the rental income.
The target tenants for the property are young professionals.
There is a risk mitigation through the sharing of tenants.

Weaknesses and Warnings:

The LTA (Loan to Acquisition) is high at 168%.
The renovation works represent a significant cost, accounting for 48% of the acquisition price.
The real estate market in the area has experienced a decline of 3.9% in the past year.
The property is not located in one of the most prestigious neighborhoods in terms of heritage.
The optimistic yield calculation does not consider any vacancy.
There are no photos of the property available.
The planned date for the first rental income payment is not specified.
The investment has a long-term commitment of 10 years.

Overall, the Colocation Nantes project offers a decent yield and the potential for steady rental income. Although there are some risks and considerations, such as the high LTA and the renovation costs, the project benefits from a good location and the possibility of attracting young professionals as tenants. It is important for potential investors to carefully assess their risk tolerance and financial goals before making a decision. Don't miss out on the bonus 1% cash back for the first investment - use code MBS as your referral code when signing up through this link. Happy investing!