Comment: Does it make sense to buy overpriced apartments?The trend is slowly changing

Money is extremely cheap now.Mortgage rates are less than inflation.Whoever takes a mortgage for seven years of fixation will protect themselves from inflation.Even states are now indebted and some people copy this behavior.

But now buy the second or third apartment so -called blood is gambling.Mortgage is a good servant today, but soon the evil master can be.If you have a mortgage for a rental apartment but you won't have a tenant, it's a problem.

It is mainly a tool for wealthy who have reserves in other types of investment and can repay the mortgage even if they fall out of income from renting an investment apartment.

Worse locations discount, the interesting ones definitely not

Czechs are said to be obsessed with their own apartments.Living in rent is not a shame, it is common in Germany, but who invested in their own housing did well.It's one of the best fuses for old age.

In addition to inflation, prices support material crisis in addition to inflation.Yet I think growth could slow down in the coming months.Prices were picked by cheap mortgages and they have already begun to raise them.In case of problems in the economy, some worse locations can also discount.But this will not apply to interesting and investment -attractive locations.

Does it make sense to buy an apartment in Prague?

When you buy an apartment in Prague, ask yourself about the following questions: Do you need a two percent annual yield?Do you want to get nervous with the tenant?Do you expect further appreciation by selling an apartment in the future?Maybe you have children and will this apartment once for them?

If you do not answer most, you should look elsewhere.If so, you have to take into account that the prices of older apartments exceeded CZK 110,000/m² in Prague, new flats are in Prague only in uninteresting locations or at around CZK 150,000/m².

But Drahota does not end at the border of Prague.High prices are elsewhere in the Czech Republic.Prices of apartments in Brno are around 80 000 CZK/m², in Central Bohemia around 65 000 CZK/m².Places with good transport accessibility, mainly by train connection have a big advantage.Unfortunately, as the construction grows, the infrastructure lags.Some areas in Central Bohemia and around regional cities cannot hold such the onslaught of new people.

I see better opportunities than in Prague apartments, in land, commercial areas and production facilities.I do not believe in offices and hotels.Not much shopping centers.

Why invest in land

In addition to apartments, there is a very interesting possibility of buying a separate land.As with apartments, of course, it depends on whether you buy it for yourself or for investment.With the apartments is the concern of the tenant.Building plots are maintenance -free.The more apartments come, the less the land will be.Lands are rare and decrease.Last year building land increased by 18 percent.

In the investment it depends on how much money you have at your disposal.Can buy land, apartment, garage, mountain apartment, for your own, on mortgage.You can invest in a qualified investor fund from one million crowns higher.Or take part in the so -called.Crowfunding, where, through a special platform, more small investors are folded at one event covered with a developer and often a bank.

Lands in Central Bohemia, however, became extremely expensive.I believe in land in the Pardubice Region.There are job opportunities and excellent train connections to Prague.I also believe in South Bohemia, mostly Písek.Is beautiful there and there is no shortage of work.In addition, the highway on Prague arrives to reduce the range under one hour.

Apartment in the Ore Mountains earns

In the regions, the apartments are cheaper and have a better yield, on the other hand, it may be more difficult to get tenants.Therefore, the mountain apartments are now very popular.They are purchased in forties who have already successfully repaid their mortgages.They want to go to the countryside with their children, do not want to cottage, want to do sports and devote themselves to children.The popularity of other homes has grown very much, people invest in the second property before the fear of inflation.

In the Krkonoše Mountain Apartments in interesting areas are more than an apartment in Prague, ie more over 150 000 CZK/m².So far cheaper are the Ore Mountains, where prices are around 80 000 CZK/m², but for reconstructed apartment houses began to be approaching hundreds of thousands.

There is a huge interest now in serviced apartments.The owner does not have to worry about anything, unlike traditional Czech cottage.The apartment bears an interesting yield and also benefits from using it for its holiday.

They borrow for two percent, rent for four

The new trend is the mountain apartment not only to buy, but for ten years to rent a service company.It works by taking a mortgage for 2.5 % to buy an apartment and for 4 to 4.5 % per year to rent it to a company that will take care of everything.

There is a low risk for the owner.Is written in the land register as the owner of the property.In addition, the apartment can enjoy the apartment for several weeks a year.Rental revenue repays the mortgage and is guaranteed for 10 years.Owners of a mountain apartment usually finance a mortgage with fixation for five to seven years.

For companies operating short -term leases, this is advantageous in having fixed rent for ten years and earning mainly in recent years of rent.It can be expected to be inflation for five to seven years of the price of weekly stays in the mountains for twice the price compared to today.It is a win-win situation for the owner and service company as well as a good tool to protect yourself from increasing inflation.