house, Cashback, Cashback, Discounted Price, Fully Furnished, Guaranteed Rental, Cycling, Historic Sites, Suburban, Town, City, Schools, parking, furnished, Conversion, Views, Investment property
An outstanding Residential Investment Opportunity in Prague’s highly sought after Suburb town of Beroun
· Pre-release opportunity exclusively for investors - (& only 27 units)
· Priced between 30-40% below current comparable market values: Units from only £52,450*
· Option to take a 15% cash-back on completion or buy with further 15% discount (i.e. on 85% mortgage = low money down investment)
· Plus: With a 2 year rent guarantee of 6% !
v Fully equipped kitchens & furniture included - i.e. ready to rent
v Secure underground & covered Parking spaces included
v 6% 2-year rental guarantee, (so an excellent hassle free buy-2-let)
v Single exchange payment of 7.5% of purchase price on contract (i.e. from approx. £3900) along with total fees and purchase costs of £5000 (fixed - no hidden extras)
v No further outlay until completion (due from Jan 2011 - through Summer 2011)
v Then 7.5% on completion with the 15% cash-back option to receive the 15% deposit back approx 3 weeks after completion
v 85% finance available (subject to status)
’An excellent low money down opportunity’
*note: properties priced in Czech Crowns, £ given as guide only. Fees and charges aree a fixed £5000 sterling which is substantially below normal purchase costs.
Czech investing doesn’t get any better than this
Project Information
The Location - Easy Commuting & Great Quality of Life
The historic town of Beroun is now one of the most desirable and sought after places to live in the Central Bohemian Region. It has excellent transport access to the nearby capital City of Prague 15 minutes by car, 20 minutes by bus and 40 minutes by train to the centre - and is also conveniently located some 40 minutes drive by highway to Prague’s International Airport. Additionally a new “super-train” link to the business centre of Prague due to begin in 2012 which will reduce the journey time to just 18 minutes.
These excellent transport facilities -- and the lower cost of living means that Beroun is now the commuting choice for an ever growing number of graduates, young couples and families as well as local residents.
Add to this the excellent quality of life and recreational facilities on its doorstep helps to explain why it is often voted the number 1 city to live in the Czech Republic.
The Project - named: “Hlinky 26” (after the street it’s in)
The project is situated 5 minutes walk from the Berounka River and historic town centre giving great access to local shopping and amenities such as schools, recreational facilities and medical centre. The project is the conversion and renovation of an existing building in an established residential area that capitalises on the strong demand for affordable quality centrally located housing.
Working with existing partners we have had input from day one of this project helping to create the optimum investment conditions for international investors - including the size and configuration of apartments and most importantly, the pricing. The result is apartments available to investors priced well below the market average, easy to rent, and allowing a clear exit strategy for eventual sale back to local owner-occupier market.
The apartments come with modern equipped kitchens, comprehensive furniture packages and a rental guarantee of 6% for 2 years. And for investors looking for the most efficient use of their capital the pricing on this project enables a very attractive 15% cash back option to be offered - which allows units to be acquired with minimal capital (excluding usual acquisition transaction costs which are £5,000 on this project).
Apartment Layouts & Prices
The apartments will be a mixture of smaller units which retain strong appeal to the main market segment that is still moving well (both for sales and rentals) in the Czech Republic. Prices given here in Czech crowns and £ guide on exchange rate of 29 czk to £1)
1 bedroom units (2+kk)
Price: from CZK 1,710,740 (approx £58,991)
Min Deposit (subject to mortgage (and 15% cash back) = CZK 256,611/ £8848
Studio’s with a defined separate sleeping area (1+kk +sa)
Price: from CZK 1,633,575 (approx £56,330)
Min Deposit (subject to mortgage (and 15% cash back) = CZK 245,036/ £8449
Regular Studio
Price: from CZK 1,520,990 (approx £52,448)
Min Deposit (subject to mortgage (and 15% cash back) = CZK 228,148/ £7867
Cash Back Vs Discount
Each buyer has the option of purchasing their unit(s) at the list price and either receiving 15% cash-back at completion or to purchase at a discounted price of 15%.
15% Cash Back Option
If we were to use unit B.31 as an example:
Purchase Price = £54,000
Reservation deposit to developer = £4050 on contract
Balance payable at comp. = £4,050
(Diff. Between finance at 85% and reservation already paid)
Cash back at completion = £8,100
Total fixed costs and fees on purchase = £5000
Therefore your total Investment input is only £5000 with 15%+ equity
15% Discount Option
Unit B.31:
Purchase Price = £47,313
Reservation to developer = £3,548
Balance payable at comp. = £3,548
(Diff. Between finance at 85% and reservation already paid)
Total fixed costs and fees on purchase = £5000
Therefore your total Investment input is only £12,097 and you will have built in equity in effect of 30% +
The attraction of the cash back option is apparent as it allows you to invest for acquisition costs only (high leverage). However, the discount option would place less demand on cash flow over the investment life cycle due to the lower amount borrowed. Either way these apartments are a great investment.
Acquisition costs
The main costs involved in buying in the Czech Republic are often an acquisition fees and costs: Normally £2,500+ purchase fees, legal fees (circa £950+), mortgage brokerage (£500+), kitchen (£3,000+ as they are not normally including) and furniture packs (£2,500+) - a total normally of approx £10,000+ which we have halved to a fixed £5000…. and we’ve even included the tenant finders’ commission to the rental agency (normally £300) and a rent guarantee so that there really is nothing further to find during the buying process or at completion !
Your apartment will come with a modern equipped kitchen and furnished to a standard that will allow a tenant to move in from day one.
We understand that the normal constant drip of requests for fees during the acquisition process can be wearing and unwelcome. We therefore work with a single all-inclusive initial payment that covers all professional services and fees.
£5000* per apartment will cover fees for legal review of purchase contracts, mortgage brokerage fee, commission to the rental agency for finding a tenant and associated agency acquisition fees.
*With one caveat in case an EU Residency application is required (by choice of buyer or if bank requests subject to status) if so, add £495.
We estimate that this saves you more than £4,800 in out of pocket expenditure.
For clarity please note that there may be some small incidental costs not included in the above such as banking charges (associated with mortgage), Powers of Attorney or Apostil’s (international notarising of documents). Investors visiting Prague during the buying process can often avoid even these costs by easily dealing with them during their stay. There are many cheap flights to Prague from airports across the UK.
We are able to cater for investors wishing to travel out and view their purchase - pre or post completion (but prior to tenant moving in ofcourse) - and we are pleased to arrange local site visits and can recommend excellent subsidised accommodation. Naturally these travel costs are also met
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