Ostrava property investment case study: confirmed 14.4% gross rental yield

Czech Point 101 January 29, 2015 @ 3:33PM

Bathroom before and after.

Bathroom before and after

Bc. Tomáš Repaský, from our Ostrava office, has done it again.

Clients contacted him in 2014, hiring him to perform an Active Search in their behalf.

He short-listed a number of properties based on their needs and possibilities. With good experience identifying properties with hidden value he looked for those which had not been renovated with a value of up to 650.000 CZK (approx. 24.000 EUR, 17.500 GBP or $26,500 USD).
WC before and after

WC before and after

After visiting the properties on behalf of the client he identified one as the best option. It was a 2+1 around 50 m2 in a very good, central location of Ostrava. The seller was motivated, Tomáš a good negotiator and an original offering price of 585.000 CZK was reduced to the final purchase price of 540.000 CZK (approx. 19.750 EUR, 14.750 GBP or $22,500 USD).

The total price of the renovation was 100.000 CZK (approx. 3.650 EUR, 2.750 GBP, $4,100 USD) for a completely new kitchen, bathroom, laminated flooring, a new wardrobe and other storage.

Bedroom after reconstruction.

Bedroom after reconstruction

After completion the flat was rented for 7.700 CZK (approx. 285 EUR, 210 GBP or $315 USD) plus utilities for an astounding gross rental yield of 14.4%.

Tomáš cautions that such a high yield is not always achievable but 11 to 12% is definitely attainable. Want one of your own? Email him at tomas@czechpoint101.com.

Kitchen after reconstruction

Kitchen after reconstruction

Living room after reconstruction.

Living room after reconstruction

Updated/Aktualizováno: ,

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