Revenues on Investown - what affects their amount?
The high returns on projects, which previously routinely exceeded 10% on Investown, reflected the extraordinary situation in the market. At that time, interest rates were rising due to high inflation. Today, the situation is turning. Interest rates are falling, the market is calming down and, as a result, yields have stabilised at a slightly lower level than usual. Why is this the right development?
The double-digit returns were the result of an extraordinary situation where CNB it raised rates sharply to tame inflation. This also affected the entire credit market — including projects financed through Investown. Now that inflation is falling, the CNB is gradually cutting rates. That means only one thing: a more stable economy, more affordable financing and a healthier environment for developers and investors alike.
More stable market = better quality projects
After a turbulent period, the investment property market is gradually stabilizing. As a result, developers now borrow more cheaply from banking and non-banking institutions, which reduces risk and brings greater security of repayment.
Pro Investown that is to say, we focus on projects with quality assurance and a strong background. If we insisted on artificially high interest rates, we would only attract riskier projects -- and that would benefit no one. Our goal is long-term stability, not short-term effect.
Great average yield above 9% per annum
In the context of other financial services, we are still doing great. In comparison, for example, savings accountswhere, depending on inflation, there is a minimal appreciation (sometimes even negative), is average appreciation 9,4% p.a. comparable to the average stock market return.
Stock they can potentially offer a higher yield, but at the cost of higher volatility and risk. Here, too, you need to take into account the long-term performance of the portfolio, because one year your stock portfolio may appreciate by 20%, but the next year you may not be doing well at all and you are losing.
If we look at bond funds, so these are only in lower units of percent. Riskier and potentially more profitable funds have no collateral.
Safety and sustainability first
Our long-term goal is for everyone to be able to invest. Whether you only have a few hundred a month or hundreds of thousands available. The ratio between risk and return must be chosen by everyone himself. You always have to take into account that every investment carries a certain degree of risk.
At Investown, we always prefer to offer you yield that corresponds to the market situationbut it's still very attractive rather than us taking too much risk.
(This article does not constitute investment advice and is for informational purposes only.)
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