The article below will provide a quick overview of
the subject, but for more detailed information please go to
Answers to Common Questions.
What makes the Czech Republic a lucrative investment opportunity
is its unbeatable location directly in the center of the European
Union, which is now the largest free-market trading block on the planet.
The Czech Republic became a member country of the EU in May of 2004.
As the country continues to ramp up its infrastructure in anticipation
of joining the Euro Common Currency in 2010, high returns on
all
prudent investments are eagerly expected.
Valuable Opportunities for You
The price of choice properties, businesses, consumables and labor in the
Czech Republic are still only a fraction (about 20% on average) of what
they cost in nearby Western countries like Austria and Germany, (Prague
properties excepted).
If all that wasn’t enough, the Czech Republic also features high standards
of living, an educated populace, a vibrant economy, a stunning natural
countryside and of course, Europe’s most beautiful and modern capital
city, Prague.
Additionally, the capital city of the country’s Eastern region of Moravia,
Brno (pronounced “BRR – no”), is one of Europe’s rising stars - a thriving
European business hub centrally located between Prague, Vienna, Bratislava,
Krakov, Munich and Budapest, served by direct flights from London and Prague.
With proper research - and the assistance of a trustworthy local company
such as our own – the Czech Republic now offers you a unique opportunity
to maximize both the value and return of your investment capital like nowhere
else in the world at this time, and for the foreseeable decade.
How Do I Avoid Fraud?
The prevalence of fraud against foreign investors in the Czech Republic
cannot be overstated. However, neither should it 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.
They do not and they will not.
These companies earn a profit by providing you with an opportunity
to spend your money – not by researching whether or not these
opportunities are safe, which is assumed to be your responsibility
as the investor.
A Local Support Team Is Essential
Take it from the pros: the experienced investor hires trustworthy
and experienced local contacts, such as our team, to perform due
diligence on every investment plan, to complete their legal work,
and to 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.
Where Are The Best Areas to Invest?
To give you at least a short answer to this common question, Prague
is a dynamic and beautiful city, but it is also very expensive due
to its popularity. If you are not wealthy, or you don’t wish to
wait 10 years or more for a substantial return on your investment,
a myriad of other lucrative opportunities exist outside of the capital city.
Consider Brno, the country’s second-largest city and a booming
European business hub. Beautiful family homes and ski-chalets in
the countryside are also prime opportunities for investment and
holiday purposes.
Of course, any prudent investment depends to a large degree upon
your individual needs and long-term goals. Feel free to call us
at anytime and discuss these things with us for a productive discussion,
free of charge.
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 between
200 – 400%) 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 just the past few 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 adoption of the Euro in 2010.
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.
