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Why should I invest in the Czech Republic now?
What makes the Czech Republic a lucrative investment opportunity
is it’s 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 around 2012, high
returns on all prudent investments are eagerly expected.
And the best news of all?
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 and our affiliated real estate professional
– 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
forseeable decade.
Since fraud is a common problem, should I be afraid to invest?
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.
Don't think it's THAT bad? Read some non-client experiences I've received.
These companies make money emphatically on 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.
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
members of the Czech Point 101 team have proven with our own financial and
business investments.
Where is the best place to invest at this time?
It is not our primary job at Czech Point 101 to tell you where
you should invest. Our responsibility, should you hire our team,
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.
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 ( more on Brno).
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 are the expected returns (ROI) over the next 5 years?
Returns obviously depend on the type and location of your investment,
but expectations in the traditional range of 6-15% are certainly available.
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 affiliate real estate
professional , 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.
Let's be real: have you invested in the Czech Republic?
That’s a valid question, and the answer is yes.
All members of Czech Point 101 have their own business
and/or property investments here in the Czech Republic, and
are as dependent as you are on earning a substantial ROI
over time. Currently, we are all making that substantial
return, and are extremely pleased about our decision to
invest locally.
Not only have we each invested heavily in this country, but
we have all used the same procedures in choosing and in
purchasing our investments that we advocate and provide
through our office.
In other words, having local connections does provide some
benefits, but it does not negate the necessity of doing
careful due diligence work to insure that all our investments
are safe. All of us have had our share of close calls
with fraud as well, which only emphasizes the need for us
to make fraud-prevention an essential part of every service
we offer to our clients.
In addition, we have used our own legal team, and tax
consultant, to perform all of our legal work in order to
insure that all of our own investment contracts and legal
filings are carried out by licensed professionals, and
with strict adherence to Czech law.
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