Get into the Czech Republic for property profits

Amanda Jarvis

February 10, 2005

Del Boy always dreamed that “by this time next year Rodney, we’ll be millionaires.”

If he had put his money into property in the Czech Republic he would have pulled it off even sooner than he could have dreamed!

UK buyers can get into the Czech property market with  deposits of just 15per cent, and a five-year fixed mortgage rate at 5.7per  cent. Smart investors then rent out the property to cover mortgage  repayments in one of the most dynamic economies in the newly-expanded  European Union.

Neil Lewis, Director for www.PropertySecrets.net , the  international property investment website, says: “Mortgages in the Czech Republic are readily available to UK and foreign buyers, and while at  present you can borrow 85per cent of the property, that is soon set to  rise to 90per cent.

“Our forecasts reveal an expected annual growth of more than  15per cent over the next 10 years. Based on this figure, if you bought a  100,000 euro property with a 15,000 euro deposit, you could see a 347per  cent profit on your investment in just three years.”

It means, says Lewis, that if you put down deposits  totalling just 105,000 Euros – £75,000 – for seven properties in the Czech  Republic worth up to 100,000 Euros each. Within ten years those properties  will be worth more than 2million Euros – and give an investment profit of  more than £1million!

These homes are precisely the kind of modern, attractive  apartments currently in huge demand among young couples and upwardly  mobile families in the Republic.

Neil Lewis adds: “When the rate of VAT on new build  construction goes up 19per cent, in line with the EU in 2007, we expect a  commensurate hike in real estate prices too which is why our overriding  message to you is to get into the Czech property market as quickly as  possible.”

The Property Secrets report chimes with upbeat analysis of  the Czech Republic economy by The Eurochambres Economic Survey which  reveals that in 2004, total turnover by Czech enterprises from the  manufacturing and services sectors will have grown 52per cent and exports  will have climbed 43per cent.

As a new and fully-fledged member of the European Union, the  Czech Republic has a stable, democratically elected government,  historically low interest rates and almost unheard of inflation: a perfect  magnet for foreign investment and rapid economic growth.

Neil Lewis adds: “Right now we believe that the Czech  Republic represents one of the most exciting property investment markets  in the world – both in terms of a high level of security and for  exponential growth.

“When buying an investment property overseas: it’s not all  about holiday villas, sun tan lotion and cheap bottles of foreign  wine.  If you’re looking to make serious gains from either rental or  capital gains in the Czech Republic then the target properties you HAVE to  look at are those suitable for rent and eventual resale to the DOMESTIC  market.”

The Property Secrets 120page Czech Market and Forecast  Report is available at http://www.propertysecrets.net.  Purchasers get both a hardcopy, book version of this report in the post –  as well as the chance to download it straightaway, all for the special  launch price of just £49.37 rather than the usual £57.

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