We need to help the food sector scale-up and make the most of growth opportunities hence investing in agribusiness is the most profitable thing to do. Your investment provides capital for agricultural entrepreneurs to maximize their productivity and yields and you help fund farmers access to inputs or the equipment they need to scale their produce as bountiful as possible.
All this to say investing in Agribusiness is investing in something tangible that produces community/worldwide benefits.
To conclude, investing in agribusiness is a strong and fruitful venture. It yields physical results that benefits the investor more than just financial gains. By investing in an agribusiness, you are investing in the success of a community.
Pros
- The catering industry shows high profitability, even in times of crisis (for example, successful establishments demonstrate 50-60% profitability).
- Fast payback periods for capital investments - 2-3 years.
- Acquisition of a loss-making restaurant for a low fee and a good business plan for its operation can bring an investor a super profit.
- The ability to diversify your investment portfolio (buying a restaurant will help smooth out the risks of, say, seasonal fluctuations in profits on the main activity).
Conclusion
Weigh these pros and cons to ensure that hospitality business investment is ideal for you. If you still can’t decide, get in touch with us. Our professionals can guide you through the process of investing in restaurants or hotels and help you make the best possible decisions.
Let's look at three benefits of investing in stocks.
Build. Historically, long-term equity returns have been better than returns from cash or fixed-income investments such as bonds. However, stock prices tend to rise and fall over time. Investors may want to consider a long-term perspective for their equity portfolio because these stock-market fluctuations do tend to smooth out over longer periods of time.
Protect. Taxes and inflation can impact your wealth. Equity investments can give investors better tax treatment over the long term, which can help slow or prevent the negative effects of both taxes and inflation.
Different Stocks, Different Benefits
The two main types of equity investments below can each offer investors different benefits.
Capital growth. The price of a stock will go up or down over time. When it goes up, shareholders can choose to sell their shares at a profit.
Dividend income. Many companies pay dividends to their shareholders, which can be a source of tax-efficient income for investors.
Voting privileges. The ability to vote means shareholders have some measure of control over who runs the company and how.
Liquidity. Typically, common shares can be bought and sold more quickly and easily than other investments, such as real estate, art or jewellery. This means investors can buy or sell their investment for cash with relative ease.
Advantageous tax treatment. Dividend income and capital gains are taxed at a lower rate than employment income and interest income from bonds or GICs.
Reliable income stream. Generally, preferred shares come with a fixed dividend amount that must be paid before any dividends are paid to common shareholders.
Higher income. Compared to common shares, preferred shares tend to pay higher dividends. (Note: preferred-share dividends come with the same advantageous tax treatment as dividends on common shares.)
Variety. There are many types of preferred shares, each with different features. For example, some allow for unpaid dividends to accumulate, while others can be converted into common shares.
This investment instrument offers a number of advantages to investors. Here are some of the advantages of bonds:
- Bonds offer coupons or higher interest rate than that of deposits. In addition, the coupon is delivered regularly during the bond tenor.
- Bondholders can sell their debts to others. If you sell bonds higher than the purchase price, you earn what is commonly called as capital gain.
- Especially for government bonds, you can use it as collateral when applying for a loan to a bank.
- The security of bonds issued by the government is guaranteed by law. The borrowers must repay the principal plus the coupons.
Risks of Bonds
Despite the advantages, bonds also contain risks. Here are some disadvantages of bonds:
- Bonds are subject to liquidity risk. It means that you might not be able to sell your bonds quickly at a secondary market due to a thin market with few buyers and sellers for the bond.
- Bonds are subject to maturity risk. This risk is related to the term of the bond. The longer the tenor, the higher the risk. That’s why bond issuers offer higher interest coupons for long-term bonds.
- Bonds are subject to default risk. This risk usually occurs in corporate bonds. There is the possibility that the company will go bankrupt and will be unable to pay its obligation.
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RAČICE CASTLE
It is a Renaissance castle complex in a picturesque setting between the Drahanská vrchovina and the Moravian Karst. Is located in its own forest park with an area of 5.5 hectares. The castle complex consists of the castle buildings, the forecourt and several adjacent buildings.
The castle itself is awaiting reconstruction and sensitive conversion into a conference wellness hotel. These activities will take approximately two years.
In the forecourt there are rooms that allow housing for tourists, cyclists and sports-minded families. This part has undergone interior renovation and since mid-June 2017, there are apartments for up to 8 people (three bedrooms), apartments for up to 4 people (two bedrooms), double rooms with private bathroom, rooms for 2 to 4 people with shared bathroom. Guests of all these rooms can use shared kitchenettes.
The total capacity of the accommodation facility in Racice forecourt is 35 beds.
This is the second stage of the construction of a modern mountain recreation centre ApartHotel with an area of over 9000 m2 on the border of Jeseníky and Kralický Sněžník, the completion of which will be started in the following years. A building permit has already been issued for the construction of a second building with an additional fifteen apartments, the same as those already built in 2016 as part of the first phase.
In addition, a building permit has been issued for the construction of a separate building including a restaurant, a conference centre, wellness and fitness areas, an outdoor swimming pool and a tennis court. The mountain resort is located in the village of Lipová-lázně. ApartHotel is suitable for groups of tourists, for families with children and individuals.
Each apartment will be equipped with a living room with kitchenette, dining area, sofa bed (full size double bed), large bed in the bedroom, bathroom with shower and toilet, each apartment will have a balcony or terrace. The apartments will have an area of 44-54 m2. The apartments will be wheelchair accessible and there will be an elevator in the building.
KOTEROVSKA APARTMENTS
The subject of this project is a five-storey apartment building in Koterovská Street, right next to the Pilsen Central Station. The aim of the project is medium-term possession for the purpose of renting, reconstruction and subsequent sale of residential units. The house is in very good structural and technical condition and requires only minor reconstruction.
ZENKLOVA APARTMENTS
The intention of this project is to acquire a building in Libeň in the immediate vicinity of the Palmovka metro station. It is a building with residential and commercial use. The building is located close to the Rokytka river next to the dead end of the Vltava river. The project is in an ideal location due to the developing area, a few steps from the tram stop Divadlo pod Palmovkou (65 m, trams 24, 10, 3, 11, 7, 13).
TRAINING CENTRE SAMECHOV
We decided to choose the Samechov Hotel project for several reasons. The first one is our vision to have properties in our portfolio that we will manage and increase their yield in the long term. Another reason is, of course, the beautiful hotel building that served as an infirmary during the First Republic. Today, the building serves as a training center where conferences for up to 127 people can be held.
KLATOVSKA APARTMENTS