Invest in real estate

27. 1. 2022

Probably all of us these days wonder why we didn't invest in property sooner or at least secure our own home. With price increases in recent years ranging from 5% to 10% depending on location, it's no wonder that investing in property has become a very good way to save your money. In a field with a wide range of investment options, investing in property or land is certainly an attractive option and can often give you better value than a savings account, fixed term deposits, other investments or building savings accounts.

Why invest in property?
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By investment property we mean property that is acquired for the purpose of renting to a third party or selling it in the future for financial profit. Unlike other investments, investment property can protect the value of money from inflation and provide a stable income from tenants. Over time, you can sell them profitably, including land or commercial property.

Buying property to rent
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The price of an investment apartment or house increases over time, and you will collect extra income on a regular basis. You can thus appreciate your investment twice, which makes this investment option financially attractive. The property can provide you with a stable income even in unexpected situations or in case of illness. For example, if you decide to travel or just enjoy life in retirement, you can just sell the property and get started.

How to look at the return on an investment in real estate
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It's impossible to predict what will happen in the property market these days. It is therefore impossible to determine the exact return on investment in real estate. We believe that prices will continue to rise for quality property, although probably not at the rate we have been used to in recent years. And if there is a downturn, it will be more of a short-term issue that should not fundamentally jeopardize your investment for 7 years or more. But it's important to remember to factor in not only all the potential returns, but of course also the costs and consider the risks.

What to look out for when choosing an investment property?
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- Location - in larger cities and more lucrative areas there is a higher demand for apartments or houses. Choosing the right location will ensure better occupancy (it's always easier to find tenants), higher rents and an easier sale of the property.

- Apartment layout - smaller apartments are easier to rent, but larger properties are more likely to be long-term rentals.

- Good amenities - whether it's nurseries, shops or doctors, the closer prospective tenants are to any services, the easier the property will be to rent.

- Accessibility by public transport - in the case of Prague this is mainly the metro for other cities it will be buses, trams or train connections to larger cities.

- The condition of the property and the need to invest in renovation or repair is definitely another important factor. Again, it depends on your ability and willingness to continue to invest both time and money in the property and consider the return on such an additional investment.

We will be happy to consult with you on your plans and options and together we will find a suitable investment for you. Just "contact us":https://www.philip-frank.com/en/#contact via the web request form.