Frequently-asked questionWhat are the expected returns (ROI) over the next 5 years? 
One customer says“We are extremely pleased Jacob found us exactly what we were looking for and things worked out with this flat.Why invest in the Czech Republic.
The Czech Republic became a member country of the EU in May, 2004. As the country continues to improve its infrastructure in anticipation of joining the Euro Common Currency in the near future, high returns on investments are expected.
Valuable opportunities
The price of choice properties, businesses, consumables and labour in the Czech Republic are still only a fraction of what they cost in bordering western-European countries like Austria and Germany.
The Czech Republic features a high standard of living, an educated populace, a flourishing economy, stunning natural countryside and one of Europe’s most beautiful capital cities. With proper research and trustworthy local guidance, the Czech Republic now offers a unique opportunity to maximize both the return on your investment like nowhere else in the world.
What about risk?
The prevalence of fraud against foreign investors in the Czech Republic is real. However, with the right precautions and good guidance, it should not keep you from investing.
Like any new market opportunity, there are the inherent risks that arise with being one of the first to invest. The Czech Republic is a new market bursting with potential, but which also has its share of money-traps for those who allow themselves to be “rushed” into an investment. Of course, it is these same risks which serve to keep the prices low and the potential returns enormous, which accurately sums up the current situation here at this time.
The prudent investor will prepare for their participation in the Czech market the same as they would any other investment opportunity:
First, take the time to learn about the specific markets where you have an interest, and research a little about Czech culture and the way the Czechs do business. Second, avoid the biggest mistake that new foreign investors make, which is to assume that your real estate agent, lawyer, developer or investment firm will protect you or your investment capital. These companies earn profit by providing you with an opportunity to spend your money—not by researching whether or not these opportunities are safe.
A local support team is essential
Experienced investors hire trustworthy local contacts, such as our team, to perform due diligence and complete legal work on every investment plan—and so should you. We represent your best interests in every deal.
With the right team behind you looking out for your best interests, it’s hard to lose in the Czech investment market at this time, as all four members of the Czech Point 101 team have proven with our own successful financial and business investments.
While it is not our primary job at Czech Point 101 to tell you where you should invest, our responsibility, is to back you up every step of the way to insure that you get exactly what you want. Affordably. Efficiently. And fraud-free.
We can certainly assist you with a vast wealth of knowledge, facts and professional (and personal) experience, to assist you in your investment research and planning. As you know, all phone calls to us are made free of charge, with no obligation.
What Returns (ROI) Can I Expect?
Returns obviously depend on the type and location of your investment, but expectations in the traditional range of 6-15% are certainly available for the conservative investor.
Far more lucrative returns, which carry higher risk of course, are also available with certain properties, such as ski chalets, family homes, large building plots, and certain real estate developments in both the commercial and residential sectors.
This is because of the vast difference in price (typically prices are 20% cheaper in Czech Republic) between properties in the Czech Republic and neighboring European countries like Austria, Germany, Spain and the U.K. where land prices have dramatically risen in over the past 10 years even with the recent corrections. Also, prices in 2009 have come down about 8% from their peak in 2007/2008, making the timing excellent and rental yields the best in years.
Add the huge foreign interest in purchasing Czech properties and businesses, and this is expected to contribute to a huge sustainable growth in property values, and therefore expected ROI, as the country nears it’s potential adoption of the Euro in 2016.
Real estate purchases performed this year by our company, on behalf of clients, are expected to achieve an ROI of between 15% at the low end, and 20% in the median after all taxes and expenses over the next 18 months.
We feel that ROI in this higher end is certainly repeatable with the proper choice of investment, and are continuing to invest our own funds as individuals with these expectations.