FREQUENTLY ASKED QUESTIONS
When investing in a company that buys, sells, rents and manages real estate, there are several specific questions that potential investors often ask themselves in order to better understand the business model, risks and potential returns.
Here are some frequently asked questions investors may have:
Who can invest with Nvest?
With Nvest investing is easy. Weather you are a private individual or a company, if you want to improve your financial portfolio and, at the same time, improve the environment in which the purchased real estate is located you can invest with Nvest.
What advantages do investors have when cooperating with Nvest?
1. Demonstrable results and expertise
Our company has a strong history of success in the real estate market, backed by years of experience and expertise in identifying properties with great potential. Unlike other investment methods where returns can be unpredictable or affected by volatile markets, we leverage our deep knowledge of real estate trends, property management and market analysis to maximize returns while minimizing risk.
2. Tangible, physical assets
Real estate is a tangible, physical asset that provides stability and security that intangible investments (such as stocks or cryptocurrencies) often lack. Real estate appreciates over time, ensuring long-term wealth growth. In addition, properties generate constant rental income and provide reliable cash flow.
3. Diversification and risk reduction
By investing in our real estate portfolio, you gain exposure to a diverse range of properties in different locations and sectors, reducing the risk associated with pooling your entire capital in a single investment. This diversification helps protect your investment from market fluctuations, such as economic downturns, which can seriously affect stocks or other financial instruments.
4. Active asset management
Our company takes responsibility for the management of the properties, including screening tenants, maintenance and resolving any issues that may arise and the subsequent sale of the properties.
This hands-on management ensures that your investment is well looked after, increasing property value and giving you peace of mind. Other investment methods, such as stocks or mutual funds, often lack this level of active management and control.
5. Regular cash flow
Unlike other investment options, which can only provide returns when the value increases or through speculative gains, our real estate investments generate constant cash flow through rental income. This consistent income can be more predictable and secure than relying on dividends or capital gains from more volatile investment methods.
6. Transparent reporting and communication with investors
We prioritize transparency by offering regular updates on the performance of your investment, property valuations and potential market risks or opportunities. This level of communication is often lacking in other investment methods, where investors may feel disconnected or uncertain about the management of their capital.
If you choose to invest in our real estate company, you are choosing a stable, diversified and actively managed investment that offers both long-term appreciation and stable income, with less volatility and more predictable returns compared to other investment methods.
How do we find suitable properties worth investing in?
Nvest finds suitable investment properties in different ways. In the company, we carry out market research to analyze trends, real estate values and demand in certain areas.
Sodelujemo tudi z nepremičninskimi posredniki in posredniki, ki imajo dostop do poslov zunaj trga.
Nvest may purchase distressed or foreclosed properties at auctions or approach property owners directly through targeted acquisition approaches.
Online platforms are used to identify investment opportunities. Working with other investors gives us access to exclusive deals, while monitoring public tenders helps identify government sales.
What do I need to do before investing?
Before you start thinking about investing your money, you need to know your current financial situation and how much funds you can allocate to the investment.
Of course, the more you can invest now, the better it will be for your future.
It is up to you to set a balance between your current lifestyle and your expectations. With the help of our team, you can find out how much you can invest. But you can consider the items below before you start investing.
Calculate your income and expenses taking into account the following:
- Monthly household expenses
- Paying off an existing mortgage
- Short-term loans, limits and leasing
- Emergency funds
- Tuition fees
- Other family obligations
In general, you can afford to invest whatever spare cash you have after all expenses are taken into account. You should consider keeping a certain amount for any immediate emergencies. You can commit to investing a certain amount each month and look at it as a monthly expense. As your income increases, you should also increase the amount you invest proportionately. This will keep you up with inflation and make your money work for you.
Once I know how much funds I have available to invest, what then?
Once you know how much you can invest, you need to define your goals – why are you investing and how you intend to refine your investments. Do you prefer short-term or long-term investment? Your goals can include any template or a combination of the following:
Financial independence
Improved life in retirement or early retirement
Improved lifestyle and financial safety and security of the family
Education of your children
Management and growth of your wealth
Now make a list of your goals in order of priority, because with a detailed plan, we increase the possibility of achieving your set goals. Divide your goals into long-term, medium-term and short-term. This will help you choose the type of investment you want to make. Additionally, you should consider your risk appetite before making any investment decision.
How do I determine my risk threshold?
With your goals in mind, determine how much risk you are willing to accept. Do you want to adopt a conservative, moderate investment strategy or an aggressive one? Ask yourself the following questions before making your decision:
Are you ready for long-term investments that will allow you to take more risk for higher returns?
If you choose to make short-term, high-risk investments, can you afford to lose some of the money you invest?
If you are married with children, what level of risk can you accept and still be confident about their future?
If you want your money safe, will you be satisfied with a moderate rate of return?
If you choose low-risk investments, will the returns be enough to cover inflation?
How does the company manage real estate?
Nvest's management is responsible for the internal control of the property managers who control each individual property in the portfolio. Nvest focuses on implementing portfolio-wide improvements, streamlining tenant communications and operational protocols, and opportunities to improve efficiency and/or realize potential cost savings across all company-owned properties. Nvest's centralized control of asset management ensures that Nvest has a holistic, streamlined approach to asset leasing and that Nvest's assets are managed in a strategic and unified manner.
How is the profit taxed when paying out the generated profit?
When selling real estate, the realized profit (sale value - book value) is recorded in the accounting records as revaluation business income and thus consequently increases the income in the corporate tax return.
Profit can be distributed among the partners in several ways:
V kolikor je investitor nepremičnine pravna oseba se dobiček pravni osebi izplača v obliki izplačila udeležbe v dobičku. Tukaj morata obe pravni osebi, tako izplačevalec kot prejemnik, upoštevati ZDDPO-2, davek od odhodkov pravnih oseb in izplačilo ( odhodek) ter prejem (prihodke) dobička ustrezno zavesti v davčnem obračunu davka od dohodkov pravnih oseb.
For information about what happens if the investor is a private individual, you can contact us and we will be happy to explain the entire process of paying out the profit.
What experience and results does Nvest have when investing in real estate?
The company is managed by an experienced management team that helps achieving convincing results.
On page Projects you can see the successfully completed projects of our company.
If you are interested in numbers, yield, time period of the investment, etc. please contact us and we will be happy to tell you about successfully completed projects.
How do we identify real estate?
- Agricultural land
- Building land
- Apartments
- Residential houses
- Commercial real estate (offices, shops, hotels, assisted living facilities, warehouses...)
What are the advantages and challenges of investing in the purchase of agricultural land?
Advantages:
- Long-term appreciation: farmland often appreciates over time and provides a solid hedge against inflation.
- Generating Income: renting out land or active farming can provide a steady cash flow.
- Tax benefits: possible tax incentives for agricultural activities or land conservation.
- Diversification: farmland provides an uncorrelated investment, reducing portfolio volatility.
- Limited supply: increasing global demand for food and limited land supply may increase the value.
Challenges:
- Market Volatility: fluctuations in commodity prices and global events can affect returns.
- Weather risks: droughts, floods and climate change can damage crops and reduce profits.
- High costs: the initial purchase, maintenance and ongoing costs of farming can be substantial.
- Illiquidity: agricultural land is difficult to sell quickly, so it is less liquid than other investments.
- Regulatory risks: zoning laws and government policies can affect land use and profitability.
What are the advantages and challenges of investing in the purchase of building land?
Advantages:
- Long-term value increase: building land often becomes more expensive over time as construction demand increases.
- Potential for development: the land can be used for residential, commercial or mixed-use development.
- Low maintenance: unlike agricultural land, building land usually requires minimal maintenance.
- Scarcity: the limited availability of prime building land in desirable areas can increase its value.
- Diversification: owning building land adds diversification to an investment portfolio, reducing overall risk.
Challenges:
- Zoning and regulatory risks: zoning laws and permits may limit the types of construction allowed.
- Market Volatility: demand for land may fluctuate based on economic conditions and market trends.
- High costs: the upfront purchase and potential development costs can be substantial.
- Illiquidity: development land may take some time to sell or develop, making it less liquid than other investments.
- Financing: securing financing for raw land can be more difficult than for developed properties.
What are the advantages and challenges of investing in apartments?
Advantages:
- Constant cash flow: rental income provides regular, reliable cash flow.
- Appreciation potential: homes can gain value over time, especially in high-demand areas.
- Diversification: offers diversification of the investment portfolio, which reduces risk.
- Tax benefits: possible deductions for mortgage interest, depreciation and real estate costs.
- High demand: high demand for rental units in many urban areas ensures steady occupancy.
Challenges:
- Market Volatility: an economic downturn or oversupply in the area can affect rental demand and property values.
- Maintenance costs: ongoing maintenance, repairs and management costs can reduce profitability.
- Tenant's risks: late payments, unemployment and tenant damage can affect cash flow and property value.
- Regulatory risks: local rent control laws or zoning regulations may limit profitability.
- Financing: mortgage requirements or changes in interest rates can affect investment returns.
What are the advantages and challenges of investing in the purchase of residential houses?
Advantages:
- Constant rental income: ensures constant cash flow from tenants.
- Long-term value increase: the potential for the property to increase in value over time.
- Lower entry costs: generally lower initial investment compared to multi-family buildings.
- Easier financing: it is usually easier to finance with conventional mortgages.
- High demand: high demand for rental homes in desirable areas, especially for families.
Challenges:
- Risk of vacancy: vacant house means there is no rental income, which can affect cash flow.
- Maintenance costs: ongoing repairs and maintenance can be expensive.
- Market Fluctuations: real estate values may decline due to economic conditions or changes in the local market.
- Tenant's risks: problems such as late payments or tenant damage can affect profitability.
- Less diversification: investing in one property exposes you to greater risk if the market changes or the house faces problems.
What are the advantages and challenges of investing in commercial real estate?
Advantages:
- Higher rental income: commercial properties often generate higher rental income compared to residential properties.
- Longer rental terms: leases are usually longer and provide more stable, long-term cash flow.
- Diversification: adds diversity to the investment portfolio and reduces risk.
- Tax benefits: opportunities for depreciation deductions and other tax incentives.
- Appreciation potential: commercial real estate can become more valuable when the demand for commercial space increases.
Challenges:
- Market Volatility: economic crises can reduce demand for office space and affect rental income.
- Higher risk of vacancy: vacancies can result in long periods without income, especially in less desirable locations.
- High initial costs: commercial real estate often requires a larger initial investment and more maintenance.
- Management complexity: managing commercial real estate can be more complex, as it involves negotiating with tenants and maintaining the property.
- Regulatory risks: changes in zoning laws, tenant regulations or market conditions may affect profitability.
Are you ready for the next step?
Do you have any other questions or Are you ready to take the next step in your financial journey?