While half a year ago, mortgage interest rates were around two percent, at the beginning of 2018, the rates were close to 2.5 percent. Given the intervention of the Czech National Bank (CNB) and its intention to return mortgage interest rates to three to four percent, it can be assumed that we are going to see a further increase in the course of the year.
"In addition to rising interest rates, it is also necessary to take into account that the CNB has reduced the sale of mortgage loans with more than 80% LTV last year, which is the ratio of the loan amount to the value of the property. This has made the availability of own housing more difficult for the middle class, for example, in the case of a three-million-yard apartment, it is now necessary to invest six hundred thousand crowns. And that's the amount that no one who owns the housing is considering, " Miloslav Kufa (Ramfin) explains.
The availability of housing makes it difficult, besides the situation on the mortgage market, that real estate prices are still growing at a very fast pace. In the past few months, cheap mortgages have been driven, but the influence of the experts has also had a growing domestic economy or a lack of free real estate. In addition, prices will continue to grow in 2018, with estimates ranging between 5 and 10 percent, mainly in large cities such as Prague, Brno, Ostrava or Pilsen.
Buying an apartment as an investment so today, according to experts, the greatest sense in two cases. The first is the situation where an investor is willing to buy it without the need to negotiate a mortgage loan. "In this respect, investment in housing is long-term advantageous. It is possible to evaluate the money deposited by three to five percent per year. Real estate, especially in a good location, is, in addition, a very good custodian of value, " says Miloslav Kufa.
The second option involves mortgage financing. "When financing an investment flat with a loan, it is of course crucial whether the collected rents cover not only the paid interest but also other expenses. Therefore, we must not forget, for example, flat insurance, contributions to the repairs fund, but also taxation of rental income, " says David Eim (Gepard Finance). "A speculative purchase only for the purpose of valuing financial resources does not really make sense to me. However, investing with some deeper intention, such as ensuring that children start their home in the future, can be recommended for a good apartment at a good location, "he adds.
The smaller flats are 2 + 1 and 2 + kk
In the case of flats intended primarily for renting, flats with the size of 2 + 1 or 2 + kk are the most advantageous for the long term. The reason is a wide group of potential tenants, flats of this size are suitable for individuals as well as for couples, young families or older people who want to live in smaller ones.
Getting tenants to a smaller flat is generally easier than in the case of 3 + 1 and larger flats. "For them, adequate rent for a part of the target group is already too high, notwithstanding that, for example, families with children who would like this size often prefer homeownership. However, if a flat is offered to students, for example, the rooms are rented individually. However, it is necessary to expect bigger worries about the apartment itself and higher fluctuations of the tenants, " adds Miloslav Kufa.
Source: tz, edited editorially