As a newcomer to this forum and a newcomer to buying overseas property, Im considering what I consider to be a "safe" investment to buy off plan in Brno, Czech Republic, on a buy-to-let. I aim to purchase a property costing about £50K GBP, funded by mortgage.

Anyone already bought in Brno? (or Prague perhaps)

Does anyone have any advice in this regard? In particular, regarding the following:

1. Which agents to use? (reputable, local knowledge etc) with a view to using them for property managment purposes

2. How to purchase - as an individual or forming a limited company?


Thanks!

Hi,

Brno is very hot right now thanks to good rental yields and low prices. Czech Republic has so much potential but hasnt seen some of the ridiculous price rises that Poland has, maybe due to its lower population and less demand.
1. There are very few companies out there that invest in Brno. Try and find someone with a property partner in the country itself. I have used Property Secrets in the past as they deal with Property in Prague who are really helpful.
2. Purchase as an individual, all you need is a EU card which can be purchased for a couple of hundred pounds. Going down the SRO route is time consuming, expensive amd very frustrating.

Iv bought in Prague and am close to buying on a Brno deal this week...

hi, i'd be interesting in seeing where you bought in Prague, i was there for a wkend break & wouldnt mind an apartment possibly in the Old Town area, any info greatly received...

Hi, sure. I bought on the Old Brewery Development in Prague 7; the price was excellent at around 25% under market value. Iv been to see the project myself and Im very pleased with it. Prague itself is a beautiful city and I can see prices rising steadily here for years to come.

As for the old town; its a great place but I dont know if you would get anywhere near it, apartment wise. I look at off plan so I can make a profit before completion. There will be no off plan developments in the Old Town thats for sure.

Finance is good in Czech too, 95% ltv is easily available.

Thanks for your reply.

As I initially stated, the main difficulty I have is finding a reputable agent that lists Brno properties. When you say youre close on a Brno deal, where did you source the property (if you dont mind me asking!)?

Hi Captain Brugge,

I have recently bought in Brno through www.property-investment-deals.com.....seem to have good local team in place.

Dont know if have any left - I know they had taken over 80 reservations.

Hope this helps.

I bought through www.propertysecrets.net

Iv now bought 2 through them and find them very good. They tell me another Prague deal is on the way so I better warn the bank manager and think of an excuse for the wife!!

Sorry for the delay in replying, been so busy

I think Brno will do well. Was looking at buying there recently but will probably not be until early 2008.

Propertysecrets are a good firm, bought in Warsaw through them.

Rental yields in Brno should be high so will cover most, if not all of the mortgage payments. Im told that everything Property Secrets have sold in Brno in the past is now rented out.

does anyone know of UK based law firms that covers property purchases in the Czech Republic...i would like to buy something here as a long term....the CGT is a bit high i think, has anyone been throught the selling/tax system in CR.

I use lawyers in Czech Republic, have never felt the need to use UK based. I get my general UK solicitor to look over things if Im unsure but thats about it.

I agree - best to use local lawyers - the beauty with Czech Republic is are some good English speaking lawyers and the buying process is pretty straight forward.

PM if want contact details of recommended lawyer in Brno.

Hi Loadsamoney. Can you post the Brno Lawyer details. For some reason I can't access PM? Maybe I've been banned

Also do you know of any estate agents there?

Im very keen on Brno. Any idea what the typical yield is? I hear quite high - 7% to 8%?

Also anyone know whether the VAT is going up to 19% in Jan or not?

Cheers.

Hi Ringledman, sorry to butt in again! Brno, is very high on rental yields right now, through research Iv found 7,8 or 9% is available. As for the VAT, it is still unsure what is happening as the decision seems to have been postponed. The 19% would only effect apartments over 120 sqm internally anyway, so smaller would remain at the lower rate.

Hi Ringledman.....

Sorry just seen your question.....


Not sure if I can post an email address or phone number on here? Will try to PM you.

Re estate agents...I have always done through UK sourcing company (I say always - am only buying my second now..... and then bought with them. Same website/company I mentioned on previous post.

Re VAT the latest in czech is that on new build it is to rise from 5% to 9% in Jan 2008.

Yes yields are looking very strong - the development I am buying in now looks like 7.5% gross yeilds..and some excellent corporate tenants.

Hope this helps.

www.kbrfx.com

Do a google search for "The CERES group" They are a large outfit with the Czech republic as their HQ. They have Brits in their accounts section ask for James Key. They are efficient and straight - used them myself.

Hi I am new to this site, but I have been looking now for a few months, and I just want to say it is really informative . Anyway I brought a flat in Olomouc Czech rep off plan a couple of years ago now through my aunty, who is a czech estate agent, it has been rented out to the same tenants, for the whole of the two years, I am really pleased, although at the time I was a bit worried , as it was not in the areas that were well known ie Prague, and Bruno, but after visiting the area and seeing the city , I was very pleased with what I saw, I think the czech rep is going to go a very long way in the future, and it is quite underestimated.

Hi, I'm fairly new to this forum; Can't help on the technical side, but have actually been to Brno; really nice city. It's a University town, and I believe all student lessons are in English. Really useful tram network. You can get that dumpling stew meal for about £1.50 in the side streets. Nice reataurants and bars in the centre. Nice buildings but not in the Prague league. Do remember the road journey from Prague to Brno; great roads through mile after mile of pine forests. Anyway, might help your purchase decision.

Hi Jinxy,

I'm new to this site too. Just spotted your post about buying in Olomouc. I wondered if your aunty still works as an estate agent there? I've been trying to contact a number of Olomouc agents with very little success. My mum is originally from Olomouc and we're after an apartment there. Would appreciate any advice. The current property mood has shifted from Brno to Ostrava, for obvious reasons with Hyundai moving in for the long haul, and new builds going up, but Olomouc seems to be completely neglected in this respect, despite being (in my humble opinion) just as beautiful as Prague!

Thanks

I have been living here in Czech Rep. for the past 17 years, my Czech wife and I run a small but professional estate agents in Olomouc. Properties here are not as expensive as they are in Prague, but rents are on a par. If anyone is serious about investing here, it is still a good time. we can provide a complete service.
For further info you can contact me, Steve Smyrk at gaudium@volny.cz or phone 00420602708424.

p.s. in general, estate agents here are not run like they are in the U.k. so beware

regards

Smiler