Understood which real estate he does not want to work with
G. Skėrys stopped working in employed jobs quite recently – a year ago. The interlocutor does not hide that he was kept there for a long time by the security factor and good atmosphere, according to a press release.
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The first investment properties G. Skėrys purchased were in the Dainava microdistrict in Kaunas. These were apartments in multi-storey buildings that the investor rented out.
“At that time, my own salary was not very high. For example, I rented out apartments for 300 Euros, paid the bank 150 Euros, and still had the same amount left. When 150 Euros is 10% of the salary, at that time it was good motivation,” the investor did not hide.
One of his unique purchases is a two-room apartment in Kaunas, for which the investor paid 4.1 thousand Euros. G. Skėrys smiles – it was the moment when he realized what kind of real estate he does not want to work with.
“There are 3–4 legendary apartment buildings in Kaunas, but legendary not in a good way. I bought an apartment in ‘Hollywood’ – at that time I didn’t even know what it was.
The most memorable was when I was bringing a client – on the first floor, in the corner, someone had urinated, on the third floor a broken vodka bottle. I said, why are you buying, maybe for investment? No, they said, for my daughter, she got into medical school. Then I realized that I could turn around and not play that theater anymore,” the interlocutor recalled.
G. Skėrys advises those furnishing real estate bought for investment not to overdo it and not to save where it is not necessary. For example, when buying the cheapest parquet or tiles. According to him, even small details are important.
“I used to furnish apartments economically and never used designers’ services. But now I think that was a mistake. I believe a good designer can significantly increase the property price if your strategy is to sell. If renting – it depends on your clients,” the investor drew attention.
Paradox in the housing market
Soon favorable winds will blow for those buying their first home. After the Bank of Lithuania updated the Responsible Lending rules, from August 1, such home buyers will have a minimum down payment of 10% instead of the current 15%.
According to G. Skėrys, this has already affected the market.
“I have acquaintances who bought apartments last year. They have a dozen years left until retirement, they say, later I will be older, they will give me a shorter loan term, and on August 1 more people will come, prices will rise,” the investor gave an example.
Considering that this year the second pension pillar reform came into effect, allowing participants to flexibly withdraw and reclaim part of their accumulated funds, the interlocutor thinks these changes could have been made with at least a one-year difference.
“There are queues in the loan market. And it is like that everywhere – with property appraisers, notaries. It is clear that the market is very active,” G. Skėrys noted.
The investor is surprised that the important “Euribor” indicator for loan holders, which is currently increased, has no impact on the market.
“Theoretically, people should borrow less, but this is not felt at all. I would say, even the opposite, it seems that ‘Euribor’ has decreased,” the investor shared insights.
Will this affect housing prices? G. Skėrys calculates that in the last five years real estate prices in Vilnius have grown from 2 thousand Euros per sq. m to 4 thousand Euros per sq. m. Still, he does not believe in a second wave of housing price increases.
“It may be that in a year or two we will have not a wave, but a recession. Then the real situation will be seen,” the interlocutor analyzed possible demand twists.
