Buying a property in the Czech Republic is a smart choice whether you’ve been living in the country for a while or have just recently decided to relocate and going to stay here long-term.
Purchasing an apartment or house can be a profitable opportunity for many reasons: first of all, it may be a good investment for you in the future if you consider a possibility of increasing its value and once you decide to put it on the market you can gain more back. Then, instead of paying a monthly rent, you can pay the mortgage for years and after that, you will own the property and do what you want with it: living in or put it on the market. Moreover, any foreigner in the Czech Republic can buy an apartment once being present in the country or based on power of attorney if currently staying abroad.
Purchasing prices are quite high in the Czech Republic compared to rent, even if housing prices rose by 20% last year.
Therefore, you may wonder why purchasing is a right choice: the answer is not so simple. The Czech Republic has a small market offering many properties to buy but not so many buildings that are built.
One of the most important motivations that can make you buy a place to live is the length of your stay. If you’re going to stay 5 years and more, it’s often worthwhile to consider buying your own home either for living in or as an investment. So what differs from renting an apartment?
When owning your home, you won’t have flexibility and mobility anymore which means that once you’re in your home, you won’t be able to move to another neighbourhood, for example. Furthermore, you have a lot of financial responsibilities because you have to cover every repair, pay property taxes which requires you having a stable income.
However, homeownership presents some advantages that you have to consider comparing to rent:
- It brings you a stability if you know that you’ll spend a lot of time in the country and decide to start a family.
- The value of the property will appreciate over time.
- It gives you some freedom that renting doesn’t, like painting the walls, extending the house…
- When the mortgage is paid off, the property is yours.
- You don’t have to worry about what if the landlord doesn’t renew the lease agreement or sell the home
The Czech Republic is ranked in 3rd place among the best countries to raise a family
As our CFO Vojtěch Steno said at the seminar about housing held by Brno Expat Center, purchasing a property becomes interesting for you if you’re planning to stay here more than 5 years. Then you count: take 30 years mortgage and see if your monthly payment is equal to your monthly rent. If so it’s a proper situation and you can consider buying a property. Otherwise, you’d better keep renting an apartment.
You can look for a property independently through bezrealitky, sreality or realingo but we highly recommend you to have someone who can help you and above all, who knows how the system works, what the laws are (for example a lawyer who can check the contract and secure the transaction or a technical company which can check whether the property has hidden defects).
We are going to include this service in our portfolio with a person going to assist you with everything you will need to succeed the process: finding the right property, consultation etc
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