Housing in Ulcinj: original Montenegro
traditionally, when buying property in Montenegro, the Budva Riviera, Tivat, Herceg Novi, Boko-Kotor Bay and the surroundings of Bar are considered - it is obvious that Ulcinj is almost not…

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Slovakia: features of the local real estate market
Acquisition of housing in Slovakia was not so long ago rare for Russians, but in recent years, more and more Russian-speaking buyers have opted for square meters of this country.…

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Czech real estate market
The situation on the Czech real estate market is not much different from what is happening in the world as a whole. According to the annual report provided by the…

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Czech real estate market

The situation on the Czech real estate market is not much different from what is happening in the world as a whole. According to the annual report provided by the European Council of Real Estate Professions, prices for apartments in Prague by the end of 2007 amounted to 87.3% of the cost of similar apartments in Berlin, 70.8% in Hamburg, 81 , 9% in Vienna, 45.5% in Rome, 26.2% in Madrid and 23.5% in Paris.

Construction is actively developing on the outskirts of Prague. This process is supported by mortgage lending, and this property is intended for the “buy to rent” market scheme. Some problems may arise here. The reason is the lack of planning – despite the existence of a huge number of laws related to planning, they will not be able to prevent the situation when one fine morning you wake up and see that someone has already built another one right in front of your house. ”

Nevertheless, in the center of Prague there is a lack of housing assortment – it is a historical city, and, accordingly, everything is saturated with history. Many foreign buyers buy housing in the central part of Prague with the aim of renting it out. However, rental prices are falling, especially in the luxury housing segment. As for the segment of low-cost housing, the process of lifting rental restrictions should be completed by 2011 (Law No. 107 of 2006), and this may lead to higher rental prices for small (low-cost) apartments, and they are the most profitable, since even now bring the highest incomes.

Czech rental market
The main reason for the high rental prices in Prague, established in recent years, was the demand coming from emigrants arriving in the country. But at the moment, foreign specialists, senior and middle managers who arrived in the country ten years ago, are for the most part crowded out by no less qualified Czech specialists, who are more efficient and cost-effective employees for international companies. Their professional skills were honed due to the fact that for 10 years they lived in a “market economy” and plus they actively adopted Western experience. As a result, there was an excess of supply in the segment of rental elite housing. Since 2000, rental prices for elite apartments and houses have fallen by 20–70%, and the most expensive real estate has suffered the most.

Despite such deplorable prospects regarding the rental of elite housing, small, inexpensive apartments, the rental price of which does not exceed 500 euros per month, provide a very good chance for a profitable investment. This is explained by the fact that in accordance with Law No. 107/2006, starting from 2011, the restrictions governing rental issues will be completely lifted.

Now in the Czech Republic about 750 000 apartments, which is about 1/5 of the country’s real estate market, are subject to rental regulation. The positive side of this Law is that the removal of restrictions will bring more benefits in those regions where there is the greatest variation in prices on rental issues, and by 2010 it is expected that the size of all rental rates will not exceed 5% of their initial (maximum) deregulated level.

Mortgage market in the Czech Republic
Despite the fact that during 2006-2007. the mortgage market increased by 25-50% per year, only about 5-7% of the potential mortgage market was involved. Mortgages are freely available both to Czechs and Slovaks, as well as to foreign investors, and its size can be up to 85% of the value of real estate. Between 2004 and 2005, mortgage interest rates went downward. However, since 2006 and throughout 2007, mortgage rates have risen along with the general increase in interest rates throughout the euro circulation area.

Taxation of individuals in the Czech Republic
Czech citizens pay taxes on their total income.

Income tax. Czech citizens pay taxes on almost all types of income. As a rule, taxable income is the sum of all types of income minus allowable costs and legal benefits.

If the taxpayer received income only from the rental of real estate, he is compensated only if his expenses do not exceed his income. Individuals who are not citizens of the country are subject to income tax received in the Czech Republic. As a rule, taxable income is the aggregate of all types of income minus allowable costs.

Capital Gains Tax. As a rule, income from the sale of real estate in the Czech Republic is included in the total taxable income and the same tax is levied on them. Capital gains are defined as follows: selling price minus acquisition costs. Income from the sale of non-commercial property is exempt from tax if the owner has owned this property for at least 5 years.

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