Frequently Asked Questions
What are the benefits of investing with InvestPro?
InvestPro is a reliable real estate investing company. This is a unique opportunity to comfortably and safely invest any amount from $ 30,000 in carefully selected objects of the best quality.
InvestPro is not only an investment platform, but also a professional team that performs the most complex and troublesome tasks for you:
Selection and thorough comprehensive audit of objects (profitability, commercial, legal, technical and other parameters)
Search for co-investors and safe transaction support
Maintenance and management of facilities after the purchase (solving issues with tenants, utilities and government)
What is the difference between InvestPro and bank deposits and other financial instruments?
Real estate investments with InvestPro have several advantages over other financial instruments: they are much more profitable than bank deposits, the average rate on which is on average 3% per annum. Compared to mutual funds, real estate investments are much more transparent since the investor selects a specific building and can get complete information about it before the transaction. Compared to exchange-traded instruments, real estate investments are safer and provide a yield of 15-20% per annum, taking into account the growth in the value of real estate itself. When investing in real estate, the buyer bears lower inflationary and devaluation risks (the risk of depreciation of the national currency), since the value of real estate grows with inflation and is revalued taking into account the current economic situation. Investing with InvestPro is a unique chance to protect and maintain the real value of your assets and receive regular income, protected from inflation
How is investor income generated?
The income is generated due to rental flows and the growth in the value of real estate itself
When and how often investment income paid?
Regular monthly or quarterly payments are made to investors the very next month (quarter) after the acquisition of the property. At the same time, the company opens a personal account for each investor and a schedule for generating income from objects under the company’s management is formed.
What income can I expect?
Profitability varies depending on the facility and the market situation. The projected profitability is indicated in the profile of each object. On average, it is 15% – 20% per annum and consists of a monthly paid rental income at the rate of 9-12% per annum and an increase in the value of the property itself by 5-8% per year.
Profitability of objects is ensured by careful selection of investment objects
Does InvestPro pay interest on investor funds or investments made?
InvestPro is not a bank and does not provide services for depositing or investing in securities. We do not charge interest, we give the opportunity to own real estate with a high reliability rating and receive income from renting it out. InvestPro pays only rental income from the property
What reward does InvestPro receive?
InvestPro reward for transaction support is 4% of the investment amount. The commission is charged in stages: 2% at the time of reservation of the property and 2% at the time when all the documents recieved . The money goes to pay for the services of InvestPro – the selection, verification and evaluation of the property, ensuring the operation of the Internet platform and user information support
InvestPro monthly fee is 10% of the net operating income from the property, which is defined as the gross rental income minus the transaction costs for the property:
- Operating costs
- Repair work
- Property tax
- Land tax or rental of land under the property
- Protection of the territory and facility
- Territory and facility cleaning
- Other necessary expenses
Who can invest with InvestPro?
With InvestPro, both Ukrainian citizens and non-residents can invest. Also, investments can be made by legal entities of any country. Investor taxation depends on residency
What does the process of buying real estate on the InvestPro platform look like?
The process of buying a property consists of several simple steps:
- Fill out the investor form on the InvestPro website
- Select a property from the catalog, determine the amount of investment
- The necessary package of documents (investment contract, questionnaire, power of attorney of the management company) is generated automatically based on the data provided
- Make an appointment with your personal investment advisor to sign the contract at a time convenient for you.
- Transfer funds to a special bank account InvestPro
- Once the transaction is closed, you will receive an official notification of the transfer of ownership of the selected object
What are the functions of the Management Company represented by InvestPro?
The functions of InvestPro as a management company include: resolving issues with tenants, utilities, government and other operations
How can I sell my property?
Investors have the opportunity to sell their property in two ways:
- privately to any person
- through the InvestPro trading platform to other investors
How is the verification and selection of objects?
Each property located on the trading floor is thoroughly tested with the assistance of legal, audit and financial consultants.
Who and how will manage the facilities after the purchase?
After making a purchase, InvestPro performs the function of servicing and managing facilities to maximize rental income and optimize costs. At the same time, investors receive a monthly financial and operational report. The object management function includes:
- Work with tenants (search, negotiations, conclusion of contracts, control of timely payment)
- Operation of facilities (work with utilities, organization of repair and maintenance of buildings)
- Interaction with other counterparties
Can an object require additional investments?
Not. In force majeure circumstances or in the event of an object being idle, payments may be reduced or stopped, but InvestPro guarantees that even this does not entail additional costs for investors. The company reimburses all costs associated with the object for the period of absence of rental flows at its own expense. An object may require separate investments if the costs are not compensated by an insurance company or a tenant.
Tax on the purchase of an apartment in the primary real estate market (the same for residents and non-residents)
The main way to purchase apartments in a new building is to invest in construction at the stage of building a house. This allows you to purchase new housing at the best price.
The tax on the purchase of an apartment in the secondary real estate market (the same for residents and non-residents)
For the buyer, a tax on the purchase of real estate is not provided, but there are other fees that he still has to pay, namely:
- Compulsory pension insurance tax in the amount of 1% of the price of the purchased property.
- Payment for registration of ownership of acquired housing in the amount of 0.1% of the subsistence minimum for able-bodied citizens
- Payment of notary services
What taxes will be levied on the monthly income received by the investor – an individual?
The management company is required to withhold and transfer income tax to the budget of Ukraine. Withholding is carried out at a rate of 13% for tax residents and at a rate of 30% for persons who are not tax residents
Under what conditions is an individual a tax resident of Ukraine or not?
Instructions for ascertaining “tax citizenship” are contained in Article 14 of the Tax Code (in clauses 14.1.213 and. 14.1). They say that the obligation to pay taxes in Ukraine (i.e. residence) is received by an individual if:
- His permanent place of residence is in Ukraine.
- If in Ukraine an individual has a “center of vital interests” (by the center of vital interests is meant close personal and economic ties with the country).
- If he lives in Ukraine 183 days a year.
In which cases the seller does not pay tax when selling an apartment?
Taxes on the sale of real estate are not paid, subject to the following two conditions (valid only for residents of Ukraine):
- If the apartment has been owned by the seller for more than 3 years
- If this is the first sale of a property seller during a calendar year
Taxes and fees to be paid by the seller of the apartment – resident of the country
- State duty in the amount of 1% of the price of the apartment;
- Income tax equal to 5% of the price specified in the contract;
- The 1.5% military duty, which will only be required if there is a legitimate reason to charge income tax.
Taxes and fees to be paid by the seller of the apartment – not a resident of the country
- State duty 1% of the price of housing under the contract
- Individual income tax of 18%
- The amount of the military duty at the rate of 1.5% of the cost of the apartment
What is the advantage of investing with InvestPro?
- Complete investment independence
In each property you are an investor and owner. Full registration in the cadastre. InvestPro undertakes all work with tenants, utilities and government agencies, providing a detailed report on all issues.
- Physical damage insurance
InvestPro provides insurance of objects against physical and other damage. The partners of InvestPro insurance programs are Privat-Insurance, Odesstrakh, Ukrsibbank Insurance and other major insurance companies of Ukraine. If the property suffers, you will receive compensation equal to the amount of your investment
- Guarantee of ownership
State licensed contracts, as well as legal lease agreements, make it possible to secure investments as much as possible and to make a legal distribution of rental income to a citizen of any country in any currency on a regular basis
- Objects with high quality rating
InvestPro decides on the choice of a property based on a variety of criteria, as well as the expertise of recognized experts and successful players in the real estate market, investment and insurance
What happens if InvestPro gets into a difficult financial situation or ceases to exist?
Investments of investors are isolated from the obligations of InvestPro and each object is owned by a particular owner and receives a monthly (quarterly) report on rental income. If InvestPro is in a difficult financial situation, this will not affect the assets of the fund, management in this case will be transferred to another management company, without financial losses
Investing in real estate with the help of InvestPro making you practically not risking.
InvestPro cannot guarantee absolute protection against the risk of loss of profitability or falling value. We recommend that you invest in various real estate properties represented by our company in order to diversify your portfolio and not bear the risks associated with focusing on a particular property
Investor – a legal or natural person investing own, borrowed or otherwise attracted funds in investment objects in order to obtain additional income
Investment object – any business object to which investments are directed. In the case of InvestPro – real estate provided by our company
Investment Committee – a collegial body consisting of investment professionals who selects objects for investment and approves an investment strategy
Investment risk – the probability of a partial or complete loss of invested funds, which can be caused by various reasons, including force majeure
Facility management fee – cash paid to a management company for a set of actions aimed at the effective functioning of a client’s investment facility
Transaction fee – a one-time payment charged for organizing the process of structuring a property
The fund’s operating company – InvestPro, is a company that manages rental relationships and the operation of an object, for profit and in the interests of investors
The asset management company – “InvestPRo” – a company that manages rental relations and operation of the property, in order to profit and in the interests of investors
Trust management – a service for managing invested funds on the basis of the rules of an investment fund and an agreement with a management company, aimed at implementing client orders related to investing in a specific property
Personal income tax (PIT) – is the main type of direct taxes calculated as a percentage of the total income of individuals minus documented expenses, in accordance with applicable law
Investment memorandum – a document containing structured information to provide to potential investors
Report on the operating company of the facility – a monthly report on the costs incurred and the operating income received
Management Company Report – quarterly report on the income and value of investor property
Rules of trust management (PDU) – this is the main document of the company containing the terms of the contract of trust management of real estate; it defines the rights and obligations of the management company and investors, the procedure for acquiring real estate. The rules of trust fund management are developed by the management company on the basis of model rules approved by the Government of Ukraine
Capitalization of an object – is a process that determines the relationship between future income and the current value of an object
Gross rental income – the total annual income of real estate, calculated in monetary terms, obtained as a result of the lease of the property
Operating expenses – costs associated with the operation of the leased object. The cost structure is determined individually for each rental object
Net operating income – the difference between gross income from an object and gross expenses for an object
Due Diligence (DD, Due diligence, DD) – a comprehensive check of the legality and commercial attractiveness of the proposed transaction or investment project
Online platform – a service on the Internet to convey information and certain opportunities to the user
Liquidity – the ability of assets to be quickly sold at a price close to market
Return on investment – the use of funds in which not only costs are covered by income, but also profit
Object value – the most probable price that can be obtained when selling a particular object
Rental income – income from the rental of an object of property minus the costs of its maintenance
Residential real estate – buildings, structures or land plots used for residential activities with the subsequent extraction of permanent profit or capital gains from rent or resale
Commercial real estate – buildings, constructions or land plots used for commercial activities with the subsequent extraction of constant profit or capital gain from rent or resale
InvestPro has been operating since 2017. In order to sustainably grow assets and satisfy the needs of its customers, the company constantly analyzes the market and monitors changes in macro- and microeconomic structures, trends and customer needs. InvestPro predicts, warns and manages possible risks to protect trusted assets.