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Investments

Výstavba bytových domů


Invest in REAL-ESTATE

Invest ADVANTAGEOUSLY = Invest WITH US

Why to invest in REAL ESTATE PROPERTY?

You are most probably aware of the fact that due to the current inflation rate of 2 - 3 % p.a. the value of your savings will decrease in the following ten years in the manner described below:

  • You decide to hide you money at home, "under the mattress": Devaluation of approx. 25 %
  • You decide to keep your savings on a term deposit in a bank of your choice:

    Gross interest rate
    Tax
    Net interest rate
    Inflation rate
    Loss (p.a.)
    Loss in 10 years

    1,5 %
    -15 %
    1,3 %
    2,5 %
    -1,2 %
    -12 %


  • You decide to invest in purchase of securities: In 2000 - 2005 the rate of devaluation of shares was 10 - 90 %
  • You decide to invest in investment funds: The average annual revenues shall equal approx. 3 - 6 % and after 6 months you do not have to pay any taxes. However:
    • At the time of purchase you must pay a fee of approx. 1 - 5,5 %
    • At the time of surrendering of your participation you must pay another fee of approx. 1 - 6 %

After deduction of the fees the valuation after ten years shall be approximately 22 - 52 %.

Therefore, the average annual valuation shall be approx. 3,7 %, i. e. it shall not cover the inflation.

Why ADVANTAGEOUSLY?

  • Prices of real estates in the Czech Republic have been constantly increasing since 1990.
  • It is almost impossible to encounter a fraud in connection with real estates.
  • Real estates are connected with as many as two forms of revenue:
    a) Revenue from lease of real estate property, and
    b) Valuation of your investments resulting from an increase of the market value of the real estate property.
  • Should the owner live in the respective house or flat, its sale is not subject to any taxes after two years of its purchase. Provided that the aforementioned condition is not complied with, the respective real estate property shall become exempt from taxes after five years.

Why WITH US?

What services do we offer?

  • Free advice pertaining to investments in real estate property
  • Elaboration of custom-made investment projects on the basis of which we will search for a suitable real estate
  • We shall negotiate (in advance) contingent financing of the purchase of a real estate by a bank
  • We shall elaborate any and all required contracts in order to ensure legal as well as financial security of your investment
  • We shall handle any and all mandatory registrations (Land Registry Office).

What are the principal possibilities of investing in real estate property?

  • An investment in purchase of a plot of land for development purposes
    a short-term investment (3 - 5 years)
    amount: starting at CZK 800,000
    risk level: very low
    revenues: price increase depending on the respective location (starting at approx. 2 % p.a., subject to taxation)
    Suitable even for minor investments, possibility of quick return.
  • An investment in purchase of a flat or a house
    a medium-term investment (5 - 10 years)
    amount - starting at CZK 3,000,000
    risk level: low
    net revenues (after taxation): starting at approx. 6 % p.a. (rent) + approx. 3 % p.a. (price increase)
    Purchase of a flat (house) and its subsequent lease proves to be the most common form of investment. Should the condition pertaining to length of the period of ownership be complied with, its sale is exempt from reimbursement of the income tax.
  • An investment in a design company
    a short-term investment (3 years) / a long-term investment (15+ years)
    amount - starting at CZK 10,000,000
    risk level: medium
    revenues: approx. 10 - 20 %
    This form represents an investment in a design company that shall subsequently implement a construction project. The investment may be carried out on the basis of a silent partnership agreement (a limited liability company or a joint stock company) or direct participation (as a limited partner) in a special limited partnership. The above-mentioned short-term investment pertains to construction of a condominium in a residential district of Prague with subsequent sale of individual flats. The above-mentioned long-term investment pertains to construction or refurbishment of an office block or commercial premises for the purpose of their subsequent sale or long-term lease.

Still hesitating?

Call us, send us an e-mail message, write us a letter. We are at your disposal whenever you need a piece of advice.

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