July 13, 2018

FAQ in English

 

Villa in Croatia: Candy Brick prepared a large list of frequently asked questions about your luscious investment property.

 

What are the unique benefits of Candy Brick villas?



Candy Brick is the first company offering:

– You get a €30,000 rental income guaranteed by contract removing any uncertainties about your income.

– Return of investment of 8.6%, that is 60% higher than the Croatian average.**

– Stress free income, with management of the villa our responsibility.

– Zero electricity bills! The villas are autonomous and self sufficient. Three systems make this possible; photovoltaics placed on the roof generate enough energy, and an air-pump and solar water heater provide heating and cooling for the villa.

 

Additional Benefits

 

If you go for the full rental option, we still give you 2 weeks free in your villa!

– There is no VAT to be added! It is reimbursed by the government within 30 days. We can even give you an interest free loan for that period!*

– Low tax expense. After deducting costs, it is around 2% of your rental income (€600).*

– Sea view.

 

Price, Rental Income and Guarantees

 
 
 

How does the Rental Guarantee work?

When the purchasing agreement of your villa has been signed, we offer a 3 year renewable Rental Guarantee agreement.

Through the Rental Guarantee, we rent your villa, and then sub-rent it to tourists. This means that we pay you the rent, and you don’t need to worry about anything else. Sub-renting, finding clients, and managing them, it is all on us.

 

Price and Rental Guarantee: what are the numbers?

Price: €350,000.

Rental Guarantee, you can choose between:

– Summer Rental Guarantee (from June to September) → €25,000.

– Annual Rental Guarantee → €30,000.

 

What does Candy Brick rental & management service include and what are the costs?

If you want, you can delegate to us the following services:

– Marketing & rental;

– Check-in & welcoming;

– Management service (cleaning, gardening, pool management, etc.);

This will cost you €5,000 for Summer Rental, or €6,000 for Annual Rental.

 

At the end, how much is my net income?

Given a prudent and realistic calculation, the situation is the following:

– Annual Guarantee (after management and maintenance costs): €24,000.

– Low tax expense, that after deducting costs should be about 2% of your rental income (€600).* **

– Net income: €23,400 approx.

Additional benefit: 2 free weeks to enjoy your villa (for full year rentals, approx value €2,500).

 

What is my Return on Investment?

Before taxes and costs, ROI is 8.6%. Significantly higher than Croatia average***

After taxes and costs, ROI is 6.7%. Again higher than the average of 4%.

Stress free and guaranteed.

 

Services

 
 

Why is the Rental Guarantee so important?

The Rental Guarantee puts you in a very comfortable situation:

– Significant income agreement;

– You save time and don’t need to worry about anything;

– Risk minimization, zero stress.

Without a Rental Guarantee, you would need to work and dedicate a lot of time to manage your Candy Brick villa in Croatia, among uncertainties and probably a lower than expected result.

 

Why is the Candy Brick Full Management service very convenient?

We have built a team of people committed to the best performance in order to satisfy clients and investors.

We look after the cleaning, laundry, gardening, swimming pool, check-in, emergency situations.

This service means that you can save time, and relax while enjoying your investment.

That is also financially convenient: having more villas under management, we are able to offer you a competitive price.

Acting individually, your marketing and managements costs would be significantly higher (almost double).

 

Location

 
 
 

Why Istria, and why Marcana?

The region of Istria, populated by 200,000 habitants, received more than 4 million tourists during 2017 providing over 20 million overnight stays (source: Tourism Board Office website). This data increased by 10% compared to 2016.

House prices are also increasing at an average 11% y/y, as well as rental prices. Within Istria, the region of Marcana has the highest growth rate of tourists and overnight stays. Furthermore, Istria guarantees:

– Gradual and sustainable growth in the real estate field;

– Huge structural investments since entering the EU (over 6 billions committed between 2014 and 2020), which means high long-term growth prospects;

– Political stability;

– Safe, very low crime rate, and zero illegal immigration;

– Splendid nature, sea, and villages;

– Cultural and gastronomic attractions.

All this is ideal and necessary to maximize your long term investment.

 

Project Construction

 
 
 

How are the Candy Brick villas built?

The Candy Brick Villas are built in a modern style with:

– Bricks

– Reinforced concrete foundations

– Thermal insulation (10-15cm)

– Room height of 2.70m

– Total floor area of 170-190 sq.m

– Triple glazed windows

– Italian tiling

– Modern furnishing

– 8x4m swimming pool made of reinforced concrete

– Glass railings on balconies and terraces

– Reinforced concrete stairs

– Rainwater collector

– Well lit interior thanks to large windows

 

What innovative solutions are foreseen?

– Heating and cooling supplied by a heat pump

– Underfloor heating

– Solar water heating

– Automatic check-in

– Heated swimming pool

– Bluetooth speakers in the bathrooms

– Photovoltaic panels

 

What is the monthly electricity cost?

Zero! The villas are autonomous and self sufficient. Three systems make this possible; photovoltaics placed on the roof generate enough energy, and an air-pump and solar water heater provide heating and cooling for the villa.

 

Is the villa furnished?

Yes, your Candy Brick villa in Croatia comes fully furnished to the highest specification.

 

Contract

 
 
 

How can I make sure that the villa will be completed successfully and to the expected outcome?

Your Candy Brick villa in Croatia will be completed exactly as indicated in the preliminary project timeline and to the same specification.

To increase your protection, in the contract between you and Candy Brick there is a penalty of 2x the value of the deposit, to be paid by Candy Brick in case the project is not successfully completed according to the project timeline and specification.

 

How should I proceed now?

The main steps to complete the investment are the following:

– Preliminary contract with 10% down payment.

– d.o.o creation (optional) with full support provided by Candy Brick.

– Payment of balance and villa delivery when it is successfully completed.

Before the preliminary contract, you can ask us for any documentation and we can discuss your needs to maximise the legal and financial protection of investment.

 

Financial

 
 
 

Why is opening a d.o.o company very convenient?

Opening a d.o.o (private limited) company is very fast – it only takes a few days!

It also means you can benefit from the 12% corporate tax regime in Croatia, that after deducting costs** should be about 2% of your rental income.

Furthermore, there is no VAT to add. VAT is reimbursed in around 30 days. We can even give you an interest free loan!*

Opening a d.o.o company costs €1,000 and the annual management cost is approximately €1,000 (Candy Brick can support you through the process).

 

Will you provide me with a trustworthy accountant?

Yes, we will introduce you to one of our partners for accounting services.

 

What about financing?

If you need it, the best thing to do is contact your bank. Your bank knows your specific situation and will be offering the best solution according to your needs.

Getting a mortgage for your villa in Croatia is also possible from a Croatian bank, again to be discussed depending on your specific situation.

 

Contact

 
 
 

Who should I contact for more information?

info@candybrick.com or call +385 17776443

*If you incorporate a Croatian company. The cost is only €1,000 and we will assist you through the process.

**This is calculated after deducting 5% (€17,500) depreciation charge from the company income statement, http://taxsummaries.pwc.com/ID/Croatia-Corporate-Deductions

***(5,43%, Business Insider, http://www.businessinsider.com/best-countries-to-buy-rental-property-earn-passive-income-2018-5#23-portugal-3, Global Property Guide, https://www.globalpropertyguide.com/Europe/rent-yields)