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Saturday, May 15, 2021

Q. I am a Luxembourg resident and I may have a nice property I’d like to develop. Can you help?

A.If you plan to put your property to market after development then yes, we will be glad to take care of yours.

Q. I have noticed some other local properties around that may be of interest to your Company. Should you decide to put them on your listings page, may I be entitled to some rewarding fee for spotting them and providing you information?

A.We constantly receive good tips on a few selected properties and if according to our analysis their potential is confirmed and we see them as a fit investment for our members, then we may list them. You can send us all information and address any specific intermediary fee proposal at emporium@localhost.

Q. Is your focus only aimed at properties located in Luxembourg? What about other countries?

A.We only deal with Luxembourg property market because it’s the one we know best after 15 years of experience.

Q. I am a qualified investor but I would like to limit my investment to 30,000 EUR, at least initially. Can I still join your Fixed-term program?

A.If you want to be considered for Fixed-Yield terms, your investment must be of 125,000 EUR or above. For lesser amounts, you can join our Micro Investing Program. You can get same performing fixed yields but on an annual basis and it will be your decision to renew your investment or not at every annual expiration. Access to Micro Investing is given on a case by case basis according to investor specific profiles and their personal experience on finance and investments. Feel free to address any query to our dedicated email micro@localhost after registering by filling our form at the registration page.

Q. I am not a qualified investor but I have a consistent amount to invest, higher than the minimum required. May I still apply for Fixed yield?

A.Depending on their country of residence, we have up to 100 slots to provide for each of our potential investors who may not correspond to the Qualified Investor category. So definitely there will be room for you too. All investment amounts above 125,000 EUR will access our Fixed Yield program. Should you wish to invest more than 800,000 EUR we recommend you consider one of our Turnkey Options.

Q. As a Turnkey investor planning a property acquisition, what are the concrete advantages of setting up a SPV on a joint-venture operation as well as for a long-term investment?

A.SPVs are commonly used by fiduciaries and lawyers as an effective way to guarantee their clients about investment protection and fiscal optimization. Essentially, their main features are:

  • Clarity: You have total monitoring over your investment;
  • Effectiveness: Holding your SPV shares means detaining a real part of the property, without all the hassles of managing it by yourself. You will be the legitimate owner of those shares during the whole life of your investment, being it short or long-term.
  • Fiscal safeguard: when acquiring, transferring or selling shares of a SPV capital gains tax and stamp duties can be widely reduced and even in some cases eliminated, mostly depending on the nature of your chosen corporate entity that will be required to hold its SPV share participations in order to reach the maximum benefit from the parent/subsidiary regime.
  • Safe Exit Strategy: In the face of any kind of adverse circumstances, the specific asset can be sold more easily as sophisticated investors may prefer to acquire a property via an SPV due to stamp duty relief.
  • Property value drops recovery: Being your investment initially capped between 49% and 50% only of the acquisition cost, even in the event of negative equity scenario and a value drop it will likely be repaid in full.

Q. Will I have to manage my long term investment property on my own after buy back option is called ?

A.Depending on your proximity to Luxembourg and your budget, you may consider to hire services of specialized staff that will take care of all management tasks while you can focus on your life. We will be glad to help you find the best solution among our local partnerships. Expect to pay just as less as 7% of your gross rental revenues per year in order to have peace of mind. Maintenance and management charges will have to be paid in Luxembourg and are fully tax deductible.

Q. Does that "From 4.75 up to 7% " suggest that fixed yields may often pend towards the lesser one? Why not offer a fixed 5.875% which would stand exactly in the middle?

A.It’s all about market conditions and besides 7% is not infrequent at all. Returns may slightly vary depending on the available properties we spot at the specific time of your investment. We advise to keep a regular look at our Turnkey listings in order to catch up with current market trends. By looking at the whole listings and extracting a cumulative average of their returns you may notice that it’s more pending to 7% than otherwise.

Q. I aim to participate to your Long-term Turnkey program, but I noticed that some of the properties on your list have changed meanwhile. How often do you update them and what is the ideal time delay to act and acquire a property?

A.Properties in Luxembourg usually do not stay long on the market and the most interesting ones obviously are extremely sought-after and sell fast, some even in 2/3 weeks. In order to maximize our time and efforts we are also asked to act quickly. Therefore, we tend to keep each new property on our listings for 20 to 50 days depending on its specificity. By holding strict deadlines to perform action on listed properties we make sure we can timely act before anyone else does.

Q. Why is use of SPVs only limited to Turnkey investors?

A. Because upon Turnkey terms the property would be owned by two actors at most, our company and the single investor. On the opposite, since Fixed-yield investors are free to invest different and smaller amounts, at some point it may result impossible to provide to convey multiple amount of SPV shares into one single entity. Notary fees would sky-rocket on one side, and our daily work get almost unmanageable on the other.

Q. What happens if at the time of my investment there are no properties available listed on your website?

A.Since we only cherry-pick the very best properties available it may happen that during some periods of the year (mainly on summer) a penury time arises. In that case you should not worry. If we don’t get what we are looking for during the summer we will usually find it tenfold by the autumn. From the time when your bond starts its terms, it keeps its date validity no matter what, and you shall be entitled to your coupon redemption according to the exact expected annual terms, regardless of whether at that moment of the year we carry zero, twelve or a hundred assets.

Q. Can I invest in Bitcoins or in any other Cryptocurrencies?

A.Soon. There’s a huge project on its way. Just stay tuned.