Excellent buy-to-let opportunity, benefiting from both high yields and capital growth.
With prices from just £35,500 to £92,000
and 15% deposit requirements starting at just £5,300
Off plan investment - to complete Q3 2008. Commuter town benefiting from the growth of Brno, with good public transport connection to the city centre.
Rental yields (gross, including parking) expectations up to 8.02%
Expected capital growth of 15 % per annum.
LTV's expected up to 80% for non-resident purchasers.
No local capital gains tax if held for 5 years
Situated on the peripherals of Brno, the town of Rajhrad shares the same benefits of investing in
Brno it’s self whilst at the same time being comparatively cheaper. Rajhrad is a commuter town with a history dating back to the 13th century. Located 5km from the city limits of Brno and 11km from the historic center, Rajhrad has excellent public transport links via train and bus connections.
Brno, the second largest city in the Czech Republic (population of 400,000), has been the focus of more buy-to-let investors in recent months with it’s combination of both high capital growth, coupled with strong yields. Brno is strategically located in the middle of three regional capitals-Prague, Bratislava and Vienna. The city has recently won an award as Eastern Europe’s (Visegrad) “European Cities & Regions of the Future 2006/07” and has seen sustained economic growth of over 9% for the past decade.
The first phase of will comprise 4 buildings on 5 levels offering 135 apartments, with underground garages and some with retail spaces and offices as well; by the completion of the project there will be a total of 300 apartments, offering a wide range of sizes and layouts (from 47 m² to 120 m²), and most of them will have a terrace, balcony or garden. Construction started in March this year with completion expected by the end of Q2 2008. Prices per m² will range from
25,500 to 31,500 CZK and apartments will cost between 1,500,000 and 3,900,000 CZK (£35,500 to £92,000 GBP; 52,500 to 137,000 EUR), including a parking space & cellar, excl. VAT.
Brno is the second largest city in the Czech Republic and is now recognised as an investment hotspot for many reasons:
• Brno is the business capital of Moravia and a large influx of big name Global businesses have relocated there and many others are planning to do so in the next 2 years.
• Companies such as IBM, Minolta, Honeywell and Siemens to name just a handful have recognised the considerable benefits in this region.
• For 2 consecutive years Brno won the prize for European City of the Future outgunning Warsaw, Bratislava. Budapest and Prague. Brno’s fast economic growth and high GDP per capita put it ahead of other contenders .
• Brno also has a well-educated workforce and is bordered by Slovakia with its growing car manufacturing industry. Brno in turn is becoming the parts, logistics and services hub to this car manufacturing explosion set to grow to 850,000 cars per annum by 2008.
• As money and investment flow into this city wages are growing rapidly and so is the population. This can only mean one thing for property prices-they are going up fast!
• Brno is also an important Education, Research and Science centre. It has the second largest centre for education in the Czech Republic including 6 Universities and 28 faculties.
• Such a big student population leads to Brno subsequently having a highly skilled workforce
• .Brno is also the Czech Republic’s conference and expo centre bringing 900,000 visitors to the city each year. There are also 2 fast developing business parks one totalling 39,000 Sq M.
• In early 2004 Ryanair started flying daily from London Stansted and Dublin, Czech Airlines also have 2 flights per day to Prague along with Lufthansa flying into their Munich hub from Brno daily.
• There are plans to further expand the Airport as continuing investment comes into the area.
• Brno is strategically placed at the centre of European road and Railway routes, Prague is 2 hours by car.
• Within 18 months a new Motorway will provide a fast connection to Poland and central and Northern parts of the Czech Republic.
• There is a very strong rental market in Brno for new build property and annual capital growth is forecasted at 15% per annum for the next 5 years.
• Brno also has substantial BTL demand and potential. Many Blue chip multinationals have head offices in the city.
• There are 6 universities and 28 academies, with students coming in from across Europe and beyond to study in, most notably medicine.
• What this means is that there is a solid demand for rented accommodation from business executives, undergraduates and postgraduates who stay on in the city.
• Apartments can be bought from about £40,000 and generate rental returns of up to 9% per annum from tenants staying three to five years..