Buy-to-let in Brno with 8%-9% yields with prices from just £43,000
Great buy-to-let opportunity in hotspot Brno, second largest Czech city, with capital growth of 15% per annum.
Investment Overview
▪ Great buy-to-let opportunity in growing Czech city (2nd largest)
▪ Rental yields expectations range from 7.24 - 9.13%
▪ Apartment prices starting at £43,000
▪ LTV's of up to 90% for non-resident purchasers.
▪ Equity requirements starting at only 3,000 GBP
▪ Bridging loans available for exchange deposits (ie. no cash down).
▪ Completion in 2007, no potential VAT complications.
▪ Expected capital growth of 15% per annum.
This development is a new build development located between Brno city centre and its ring road, which is being completed in two phases, buildings A and B, offering a total of 155 apartments, ranging in size from studios to 3 bedrooms. There is an underground garage whose roof has been covered with grass to provide gardens for the ground floor apartments. Building B also has 2 shops.
The project is located in a very quiet area, surrounded by greenery, such as the Bila Hora Park and it is also only a short drive to the countryside. It takes less than 10 minutes by car to the centre and, of course, there are good public transport connections (bus & tram) as well. Nearby are a kindergarten and a primary school, playgrounds, a doctor, a library, restaurants and a swimming pool.
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. Brnos 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 Republics 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..
