Flipper/Rehabber · Reno, NV · Member since 2016 · 235 posts · 35 votes
6y
yeah, what he said. Rates are good. I know some people that do really well in development there, building SFR etc. The problem I always ran into there is that nobody wants to work hard or take risks. The appreciation has been good over the last 10 years though...
Property Manager · Zurich, Switzerland · Member since 2019 · 28 posts · 5 votes
6y
Real estate in Prague now?
Harder than 5 years ago, that's for sure. Especially now they're imposing limitations on the amount one can borrow etc. However, there should still be opportunities, especially now interest is low with expected stagnation... Best is to have what we say in Dutch: "a long breath", but that's often so with real estate in general (at least with buy&hold)...
Flipper/Rehabber · Reno, NV · Member since 2016 · 235 posts · 35 votes
6y
yeah, what he said. Rates are good. I know some people that do really well in development there, building SFR etc. The problem I always ran into there is that nobody wants to work hard or take risks. The appreciation has been good over the last 10 years though...
Financial Advisor · Prague, Prague · Member since 2016 · 24 posts · 10 votes
6y
@Seen Aquin I have been on the market since 2014 as a mortgage broker. We financed properties mainly for BTL, both mid-term and short term. Long term we don't find really effective as the best is renting room by room. AirBnb is good in near-to-center areas, I wouldn't suggest buying in the very center for the high prices in Prague 1.
Financing is nowadays more tough, what is interesting is product from one of local banks which lends to new SPVs (can be owned by foreigner) with 3,99%, duration 25 years and 70% LTV. This is the best IMHO foreign investor can get at the moment.
The problem I always ran into there is that nobody wants to work hard or take risks. The appreciation has been good over the last 10 years though...
Oh yes, tons and tons of people being afraid of the responsibility, the so-called risk, the fear of not getting paid rent... Heard all the "excuses" all the time... What would they rather do? Have millions to buy a high-profit business. Yeah, dream on.
Let stay asleep & keep on dreaming though: less competition for me :-p
I rent [or what is it called from the landlord side?] in the Usti region which is in the part called previously Sudety [all the Germans, guilty or not, were kicked out by Benes in 1945] and so there is the tradition of the lack of tradition or any homeland feel. Gypsy population [which is passionately unpopular with at least 2 thirds of the Czechs] is swarming here. So there is an online site-map of all the Czech property m2 prices [ask me later] based on the recent sales and you can see some cool concrete apartments being sold for less then 5% of Prague 8 [not the city] m2 just an hour or so far highway away. Go imagine, the renting is not so skewed since it is income-inelastic [state jobs like teachers], Praha or Sudety [we have mobility]. So yes, you can buy here, next to Germany, and have the tenants pay you a net monthly rent of some 1 - 2 % of the purchase price. And what more, the dreaded 4% realties purchase tax was abandoned in May 2020.
Nothing to compare it to the rate in commercial webpages but more or less stable an income, innit.