• Investment Features
Financing Availability – Up to 100% finance is available subject to status on completion. Three months bank statements and/or payslips are required and an indicative offer for your finance can be achieved within a week. A term of 25 years is available (or up to 70 years of age) and interest rates are between 5% and 6% depending on the loan amount. In house, English speaking mortgage brokers are available to talk to and/or assist you with mortgages in the UK and the Czech Republic.
Payment Structure and Timings – a £2,500 acquisition fee is payable to secure the property in your name immediately. This is not deducted from the purchase price of your apartment. Within 6 weeks time a reservation deposit of 50,000 CZK is due (£16121.90 @ 31CZK = 1 GBP) There are no further deposits to be paid towards the purchase price of your property until completion when the balance is due via cash or mortgage.
Running Costs, Completion Costs & Fees – Legal fees are £2,244.95 including VAT payable in 2 instalments (£535.50 to exchange and £535.50 to complete) plus £654.95 in disbursements and services, plus the setting up of your Czech Residency at the cost of £400.00. Please email or call for a full breakdown of these costs. The mortgage arrangement fee is £695 and must be paid prior to getting a mortgage agreement.
Rental Yields and Market – Rental yields in the area average at 7% and the market is very strong. The majority of local Czech residents rent properties instead of purchasing them and only a very small percentage of Czech nationals actually have a mortgage. Most properties rent within 4 weeks of completion for at least 6 months to a year.
Expected Growth – Capital growth in these areas is expected to be up to 25% per annum with some parts of Prague and the surrounding areas achieving growth rates of up to 30% per annum. The demand for new build property is pushing prices higher and higher and therefore growth rates are soaring. As the younger generation earn higher salaries and more and more people are purchasing property the prices are rising and investors getting in on developments in the earlier stages are taking advantage of the high growth rates.
Exit Strategy – As we currently have an office in London as well as Prague and Beroun, we will be able to sell your property for you on the local market and end user or to a new investor. If you are looking for a quick return on your money a development like Janska is perfect with a long completion date there is plenty of time to assign the contract to a new investor before you complete with no property transfer tax, income tax or capital gains tax to pay in the Czech Republic. However, there is also a good reason to hold on to the property for slightly longer. After 5 years of ownership, there is no capital gains tax to pay in the Czech Republic. Whatever way you want to make your money and manage your investment property we will be happy to help.
• Local Area
Janska is located between 10km from Prague and only 2km east of Beroun in a small town called Lodenice. It is only a short walk from the local amenities such as local shops, school, railway / bus stations and several factories.
Beroun is the closest city and is located 20km south west of Prague city centre. The drive from Prague to Beroun is only 20-25 minutes along the D5 highway which continues to Pilzen and Germany. There is also a train that runs from Beroun to Prague and takes approx. 35-40 minutes.
Beroun is one of the fastest growing regions in the Czech Republic with property prices already growing at an alarming rate. There has been a lot of foreign direct investment into Prague and Beroun also with companies such as Lidl, Hypernova, Skoda, Kia Motors, Best Western Hotels, Kaufland, Delvita, Billa, Ceskomoravsky Cement, Kostal, Tipsport, Linde Frigera, Hornschuh, with a presence in Beroun. The development itself is located in the centre of the town.
• Property Details
Details of the Development – Janska shall be built in one phase comprising 24 apartments in total. This is made up of 16 studio’s, 7 one Bedroom apartments and 1 two Bedroom. This is a conversion which is due to complete March 2009. The price includes a fully fitted kitchen, bathroom, floor covering and a parking space. All the apartments come with a 2 year 6% rental guarantee.
• Property size - Available units
Studio
29.35m² - 40.00 m² from £41,000 - £51,000
One Bedroom
72.00 m² - 82.75 m² from £89,000 - £110,000
Two Bedroom
91.70 m² from £121,570
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