The most frequently asked questions from investors
The news in Investown raises more and more questions, so we have decided to write down the most common ones so that you do not miss anything and keep an overview.
What is Investown.cz
Investown.cz is a Czech online investment platform operating on a crowdfunding model. Thanks to Investown, everyone can easily invest in real estate in the Czech Republic and soon abroad, starting from CZK 500. In the case of Investown, crowdfunding thus makes the implementation of real estate projects and renovations accessible to companies and people who would not have achieved their interesting vision through the traditional way of financing.
Revenues for our investors range from 8.5% p.a. and by investing in projects on the platform, you participate in the development of construction in the Czech Republic.
Why do I need to go through verification, take pictures of documents and answer questions?
We must verify your identity in accordance with the statutory regulations. All information is for the sole purpose of protecting our investors and preventing money laundering. Documents are stored securely and are no longer used for any purpose other than verifying your identity. We are required to include in the screening for questions by law, when we need to check your financial literacy.
What does it mean that you are not a sophisticated investor?
We classify all investors as “unsophisticated”. It does not depend on the result of the completed questionnaire and you are also not limited in investing on our platform. In order to be sophisticated, an investor must explicitly ask for it and sign that he wants to be a sophisticated investor. But for the investor, this means that he waives, for example, the deadline for reflection. For these reasons, all of them are considered unsophisticated investors from the very beginning.
Why is it no longer possible to invest in participatory projects?
After the July update, all pro-funded opportunities appeared. The reason for this was the change of focus on new investment opportunities, where participation in rental apartments is no longer involved.
When will there be new investment opportunities?
We are constantly preparing investment opportunities for you. In order to eliminate risks, opportunities must go through several stages of risk evaluation and background analysis. The moment everything is approved, we do not fly and put the opportunity on the platform. As soon as we have everything confirmed that the next opportunity will come, we inform investors in advance in the Investors Facebook group at Investown.cz.
Repurchase of investments in participations × mass investing
For participations It was customary that all offered repurchases of investments were bought by us, and then offered them to other investors. For older opportunities, this buyback model persists, however, opportunities are closed and investment is no longer offered. The guaranteed buyback is always at the end of the investment period. Redemption in case of early withdrawal from the investment is not guaranteed, however, in the history of our platform it has not been realized. At the time when several investors sell their investments at once, there is a need to buy back investments systematically based on the current cash flow, because of this, the redemption period of the investment can stretch.
For the mass investment model We have created a Marketplace for the purchase of investments, where you can offer the investment directly to another 50,000 investors.
In both cases, early withdrawal from the investment is charged 0.9% of the offered amount.
What do individual statuses mean for opportunities?
Once a new project is put on the platform, it is possible to invest in it until it is fully invested. At that point, you will see the status Open to invest. As soon as the project is invested, administrative issues arise between Investown and the loan applicant. During this period, it will be in Investment Processing status. These matters last for several days. Once everything is fulfilled, the status of the project on the platform is marked as Paying Profits, and from now on, after 30 days, the first profits are credited to investors and then on the same day every month.
How are the opportunity profits going now?
Profits are credited monthly to your Investown wallet, always on the day the project was launched. To recognize the start of a project, the investment opportunity detail in the status box will indicate Payout of profits. In the description you will find the date on which the investment opportunity became active.
Profits from Initial participative investments goes on the last working day of the calendar month.
How to tax profits from Investown?
Just like any other income, investment gains need to be taxed. Each year, we will provide you with a summary of your expenses and income on our platform for tax purposes.
In general, it can be stated that taxation profits from participations for older investment opportunities, it falls under Section 10 of Act No. 586/1992 Coll., on Income Taxes, as amended (hereinafter referred to as ZDP).
Gains from crowdfunding opportunities are then taxed on the basis of Paragraph 8 (1) (g) of the ZDP
However, check with your tax advisor about your tax return. Investown.cz does not provide tax advice.