The yield from investments in real estate of the Czech Republic more than 10% per annum

18.01.2016 00:45
Articles about real estate | The yield from investments in real estate of the Czech Republic more than 10% per annum The Czech Republic is the second largest investor in Europe after Poland. In the country accounts for 25% of the investment market of Central and Eastern Europe. The growth of investment in the real estate market in the Czech Republic in the first half of 2015 amounted to 53%.  The yield from investments in real estate Czech Republic today can range from 5% to 40% per annum, depending on the subject and the amount of investment.

The most promising options for investing in Czech real estate market:

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1. The acquisition of an apartment on credit. Mortgage rates for non-residents is from 2.79% per annum, the loan term - 20 years (until the borrower 67 years). The minimum initial contribution - 40%. To obtain a loan does not require a visa and proof of income in the Czech Republic. Cost per square meter in Prague is an average of 1,500 to 3,500 euros.
Profitability provided by the rising cost of purchased object by the general rise in prices and increase in construction stage, can reach 10% per annum. Profitability by subsequent delivery of apartments for rent - from 4% to 7% per annum.

2. Acquisition of the apartment building. In the Czech Republic distributed a format property, the introduction of which is much talk in the Ukraine as well as apartment buildings. The profitability of such an object is 6% per annum. The cost, depending on the location, area and state varies from 500 thousand. Euros and above.

3. Investment in the construction land in combination with buildings. The profitability of such investments only due to price increases of up to 10%, while building may reach 30-40% per annum.

4. Loan and equity investments in development projects. Investments in development projects for maximum profitability, investing in several phases, cyclical investments.

Preservation of invested capital and a high enough return on the real estate market in the Czech Republic contribute to such factors as:
- Annual growth in property prices. Even in the difficult global economic conditions, growth in property prices in the Czech Republic is, depending on the region of 10% per year;
- Annual growth of investments is 53% for the first half of 2015;
- Transparent tax system is identical for residents and non-residents;
- Developed banking infrastructure, stable financial system, the availability of mortgages for residents and foreign nationals.
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