Frequently asked questions

Basic information

What is LUSQ?
LUSQ is a unique real estate service in the Czech environment, which is the first to allow you to buy an investment apartment online, not to worry about anything and just collect the LUSQ Guaranteed Return. The service combines the founders' extensive experience in real estate, law, finance and online services to provide its users with a simple path to guaranteed appreciation of free funds.
Who is behind the company?
LUSQ is brought to the market by the ndot.cz team. Its ranks include experienced Czech entrepreneurs and experts in a variety of fields. They bring digitization to traditional industries such as finance or real estate.
How does the service work?
We monitor the property market in proven locations and systematically buy apartments that can generate interesting returns and whose price has growth potential. The property is first completely renovated, then rented and then offered for sale on the LUSQ website. The potential buyer buys the selected apartment from the comfort of their home. Usually you only need to pay down 30-45% of the purchase price and the apartment is 100% yours. The customer does not have to worry about management and lease. Everything is included in the price. Each month, the owner (landlord) receives the LUSQ Guaranteed Return in their account, net of all costs and fees. Selling an apartment is as easy as buying it. Everything is fast, simple and online.
Brick or paper?
Czechs want the brick. Although today it is fashionable to invest in real estate through securities, at LUSQ we believe that the customer prefers the actual ownership of an apartment over a real estate fund or a bond. In a crisis, paper can lose its value altogether. A brick will remain a brick.
What properties does LUSQ offer?
LUSQ buys properties that generate interesting returns. A typical representative are smaller apartments that are easy to rent and generate the highest appreciation over time.

Buying the property

Can I actually buy an apartment online?
You have never bought a property online? Never mind. Believe us, it is possible. You've been buying travel tours and TVs on the online shop for a long time, so why not an apartment? Just a few clicks and the property is yours. Most documents are processed electronically.
In what locations can I buy an apartment?
We are currently focusing on the Region of Moravia-Silesia, northern and southern Bohemia and Vysočina.
What is the condition of the properties?
We tastefully renovate each property after purchase. It will not need any further investment for a long time and the tenants will just rush in. Exceptionally, we buy apartments that are already renovated.
How does the purchase of an investment apartment work?
On the LUSQ website you can see the offer of properties for sale. Simply put your chosen apartment in the shopping cart, fill in the necessary information, pay the reservation fee of CZK 9.990,- and no one will take it away from you. In your email you will then receive all the necessary documents and instructions on what you need to sign and how to pay the purchase price.
Who owns the property?
If you choose self-financing, you will acquire the apartment by default into personal ownership. If you choose LUSQ Financing, you hold the apartment in the form of a cooperative share, the so-called LUSQ SPV.
What is LUSQ SPV?
LUSQ SPV is a special purpose vehicle - a cooperative on behalf of which LUSQ first purchases the apartment and where it then sells the cooperative share corresponding to the selected property to the buyer. Simply put, the new owner owns a membership share in a cooperative that owns 100% of the property. The principle is the same as when you buy a cooperative apartment.
What are the advantages of owning an apartment through LUSQ SPV?
Given that these are rental and profit generating properties, ownership through a LUSQ SPV has many practical advantages. You don't have to take out a loan to buy an investment apartment, a cooperative share can be transferred faster than a private ownership property and is not subject to acquisition tax. That tax may be cancelled now, but that may not last forever :)
How much money do I need to have ready?
You can buy an investment apartment for a price from CZK 300,000.00. It depends on the specific location and the offer.
Do I have to have cash, or can I borrow?
Each apartment has a pre-arranged credit facility, up to 60-70% of its value. The new owner does not need to provide evidence of anything else and just takes over the property with the loan.
How does LUSQ Financing work?
LUSQ first buys and renovates the property with its own funds. It then takes out a loan from the bank and partially refinances its own capital. The membership interest in LUSQ SPV passes with the loan to the new owner, unless of course the owner wishes to buy the property only with his own money. The apartment loan drawn down is equal to the amount of the outstanding annuity.
Who provides the loan?
LUSQ SPV uses a standard bank loan for legal entities - housing cooperatives.
Is the property mortgaged to the bank?
The assets of LUSQ SPV are pledged to the bank against the loan taken out.
Am I really the sole owner of the property?
Yes. The new owner owns a membership interest in LUSQ SPV, which corresponds exactly to the property purchased. If the cooperative member has paid off the annuity, it is of course possible to transfer the apartment to private ownership after the end of the LUSQ service. If you finance the property with your own funds, you acquire the apartment directly into private ownership.
Can a foreign national buy an investment apartment?
Yes.
Can I see the property before I buy it?
Yes, you can see the property in person upon agreement.

Guaranteed return

How does the LUSQ Guaranteed Return work?
LUSQ Guaranteed Return is a fixed amount that the property owner earns per month. This is the gross return before tax including the contribution to the repair fund and the repayment of the loan principal. The tenant pays rent to the LUSQ Management; LUSQ Management deducts the cost of facility management and pays all fees related to the apartment. And the rest is the LUSQ Guaranteed Return.
When and where does my money arrive?
LUSQ Guaranteed Return minus mortgage and the repair fund goes into the bank account you specify in your contract once a month.
Do I have to tax the income?
The returns are subject to income tax at the rate of 15%.
Who rents the property?
The LUSQ Management itself searches for tenants to occupy the apartments. It is careful who it rents the property to. Preference is given to decent, long-term tenants.
What if the apartment is not currently rented? Do I still get money?
LUSQ assumes the risk of non-occupancy. You receive a guaranteed return even if the property is vacant.

Property Management

Where can I find all the relevant information and documents for the property?
You can find all documents, information and billing relating to the property directly in the LUSQ web app.
What does LUSQ Property Management do for me?
LUSQ Management provides all the services that an owner of an investment apartment would normally have to arrange themselves. These include managing and maintaining the property, finding a tenant, collecting rent, and providing services. Communication with the housing association (SVJ), bookkeeping of LUSQ SPV and many others.
What costs does the service include?
The difference between the rent collected from the tenant and the LUSQ Guaranteed Return covers all necessary service costs. The owner does not pay anything else.
Can I arrange my own facility management and tenant?
The owner can, of course, dispose of the property as he/she pleases. The notice period of the LUSQ Management service, which is 6 months, must be taken into account.

Sale of the property

Can I sell the property?
The property belongs to the owner. He/she can, of course, sell it if he/she so chooses. You can sell it directly through the LUSQ app.
How long before I get my money back from the sale?
Investment apartments are a desirable commodity. Most sales take place within hours or days at most. LUSQ will recommend the optimal selling price.
Does LUSQ guarantee a minimum value of the property?
LUSQ does not guarantee the rise or fall of property prices. LUSQ buys properties in locations where house prices are expected to rise. However, short-term fluctuations may occur.

Other

How and when can I terminate the LUSQ service?
LUSQ services are linked to the Framework Agreement, which you enter into with LUSQ when you purchase the property. This framework agreement defines the terms and conditions for the purchase, sale and management of the property. You can terminate the LUSQ service a) by selling the property via LUSQ app; b) by terminating the LUSQ service by notice. The notice period is 6 months. After this period, you can, of course, dispose of the apartment as you wish.
Can I live in the property myself?
Of course. The apartment belongs to the owner who can dispose of it as he/she wishes. After the expiration of the notice period of the LUSQ Management service, the owner may also live in the property.

Didn't find the answer to your question?

Contact us by e-mail at info@lusq.cz