- Capital
growth
- Invest
early
-
Rental income
-
Rental demand
Capital
growth
Your
investment will naturally increase in capital growth over time.
The price of properties in Prague has been steadily increasing at
ten to fifteen per cent per annum, some projects seeing a twenty
per cent growth, a trend predicted to continue for the forseeable
future. Based on these figures, this means that in ten years
time your investment of just a £4,500 deposit on an apartment
at £39,000 could reach a value of £87,645.
Invest
early
The
key to generating maximum capital growth is to invest early to benefit
from price increases at different phases throughout the development.
While your property is being built its value is increasing, meaning
that before you even have to start repayments on its mortgage, your
investment will be making you money.
Rental
income
Once
your property is complete and ready for rental we will, on your
instruction, assign it over to our professional letting agents who
will always obtain a true market value rental income for you.
For up to date rental assessments for each of our developments call
our office on 0845 070 5545.
Rental
demand
Over
the last two years the average wage in Prague has doubled, as a
result of increasing numbers of multinational companies recognising
the Czech Republic as a favourable and economic location in the
heart of Europe. Management jobs are being created and professionals
are fuelling the demand for high quality accommodation and luxury
lifestyles that have been in short supply.
Typical
return on your investment
We
have included two examples here of the likely return on your investment
over a period of five and ten years, based on a capital growth rate
of 12.5% per annum. This is an average figure taken from the
predicted growth rate of 10 to 15% per annum for the future.
example 1
example
2
purchase
price £39,000
purchase price £107,000
1st
year
£43,875 1st
year
£120,375
2nd
year
£49,359
2nd year
£135,422
3rd
year
£55,529
3rd year
£152,350
4th
year
£62,470
4th year
£171,393
5th
year
£70,279
5th year
£192,817
ROI
after 5 years £31,279
ROI after 5 years £85,817
Against an original investment
of £4,500 deposit
Against an original investment of £16,000 deposit
10th
year
£126,645
10th year
£347,463
ROI
after 10 years £87,645
ROI after 10 years £240,463
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