Czech Republic gives excellent value for property investment
By GP • Jul 28th, 2008 • Category: Garry Pierrepont, Opinion
The Czech Republic was formed on 1 January 1993 and joined the European Union in 2004. It has a population of just over 10 million and borders with Austria, Germany, Poland and Slovakia. With an excellent strategic location in the new Europe since the collapse of Communism brought down the Iron Curtain, the Czech Republic is becoming a key point in Europe for global companies looking for a hub.
Prague
Capital city Prague is a wonderful place, with buildings hundreds of years old remaining untouched by the wars that have run through the country. The River Vltava separates the medieval town on the east bank from the steep bank on the west with cobbled streets, museums, cathedral and royal palace. Now these beautiful buildings are being joined by new developments as old Communist blocks are torn down.
Prague for Investors
Demand from foreign investors for property has steadily increased, and Prague has become attraction for investors, not only because of its tourist attraction for a second home, but also for its rental possibilities. Prices in Prague have almost doubled in the last two or three years, so now investors are looking further afield for bargains.
The district of Beroun is in the south-west part of Central Bohemia near to Prague. It has excellent links to the capital by road and rail. The beautiful region has varied landscape and can boast of the prestigious golf course near Karlstejn Castle. Only 25km from Prague, but with a country feel, the region is expected to boom in the next few years, with the overspill of Prague workers looking for commuter areas. Beroun fits the bill. Companies such as Lidl, Hypernova, Skoda, Kia Motors, Best Western Hotels, Kaufland, Delvita, Billa, Ceskomoravsky Cement, Kostal, Tipsport, Linde Frigera and Hornschuh all have a presence in Beroun and there is also an Ikea store close by on the D5 highway. Beroun is one of the fastest growing regions in the Czech Republic with property prices conservatively estimated to be rising at 15% per annum.
The Mill at Janska
A new development just 2km east of Beroun is The Mill at Janska. Only a short walk from local amenities including shops, schools, railway and bus stations, restaurants and several factories it is perfect for rentals to the local market.
This is a conversion project from an old mill. The development will consist of 24 units (16 studio apartments, seven one-bedroom apartments and one two-bedroom apartment), all including fully fitted kitchens, bathrooms and floor covering in the purchase price, as is one parking space per apartment. Each unit is offered with an optional two-year 6% rental guarantee, assuring you of a rental income each month. The minimum deposit required is just 50,000 CZK exchange of contracts—this is just £1,600 at the current exchange rate. The Mill is due for completion at the end of March 2009 and tenants are already lined up to move in to the property—showing just how high demand is for these modern properties in the area. The beautiful high ceilings and fantastic views of the stunning countryside in Beroun makes this project in particular a sought after investment.
Prices for studio apartments start at around £45,000, and can be bought for a total capital outlay of just over £7,000.
These won’t last long.
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