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Is it still worth buying an apartment as an investment?
13/04 2022 Jan Blažek Copy URLShare

Is it still worth buying an apartment as an investment?

Here are a few reasons why we think so:

→ House price growth will continue and settle around 5% per year.
The insufficient supply of real estate, which is gradually increasing (e.g. through the use of brownfields such as Smíchov City, Rohan City, Rezidence Parková čtvrt', etc.), combined with the still high demand (purchase of middle-class apartments for children/grandchildren, real estate investment funds) and the rising prices of energy and building materials speak clearly.
→ Prices for rental housing will increase.
People will not be able to afford their own housing and will look for rentals.
→ Uninvested savings lose value quickly.
Inflation is expected to be around 12% (1 million in an account at the beginning of the year equals around 880k at the end of the year).
→ It will become increasingly difficult to obtain credit in the future.
The assessment of loan applicants (LTV, DTI, DSTI, LTI) is getting stricter.
→ Monthly loan repayments will increase.
Interest rates are increasing (2T repo rate is 5%, the highest since 2002 = average interest rate of 4.8%).

We would recommend buying a smaller apartment with a price of up to CZK 4 million, which we will rent out with an annual return of CZK 132,000 (CZK 11,000/month), i.e. an appreciation of about 3.5%. If we consider a 5% annual growth in property prices, this is still a suitable option for fighting inflation and at the same time ensuring a future generation for whom living in their own property will be a luxury.

We would be happy to help you find an investment property, including finance to buy it, arrange rent, insurance and comprehensive management. Everything can be done in one place at the MAHOON office in Vítězná Street😊
Living in prosperity
01/06 2022 Filip Pištora

Living in prosperity

A life of prosperity is the guiding principle of MAHOON and all our actions are aimed at achieving it.