I am very keen on Brno in the Czech Republic right now -  but what do others say?

“Central and Eastern Europe is a strategic market for us where we plan in the coming years to double the volume of our activities, commented Stephan Semsch, Lufthansa's Director for Central and Eastern Europe, and added: “We thoroughly assessed 30 possible localities in total and ultimately chose Brno for its strategically favourable position within the region and its proximity to the important airline hubs of Munich and Frankfurt. Other great advantages of the Czech Republic are its membership in the EU, quality telecommunications and technical infrastructure and the motivated, qualified and cost-effective work force.”
 
So some pretty powerful factors in Brno’s favour as a growing and attractive economic location.
 
As previously stated, I would rather invest in a country where the local banks will lend me as a foreign investor 85-90% of the property value and therefore take a large amount of the risk and show their strong confidence in the values of the property and most importantly help us achieve far higher returns on your leveraged investment.
 
I also am looking for a good rental market and reliable legal systems in place.

In many of the most emerging markets this is very difficult to obtain.
A team on the ground that can speak English, has experience in lettings and property management and can pay your rent reliably into your bank account, that you can check online, is very important to the long term performance of your asset.
 
Headline figures of capital growth in some emerging markets are no good if you cannot find a reliable or trustworthy lawyer or anyone to manage your property on completion.
 
We are big fans of the Czech Republic and in particular Brno right now as they are offering excellent economic factors, namely:
 
High Leverage 85-90% borrowing fantastic ROI available due to this
 
Emerging mortgage market many of these markets have only around 5-10% of the property values mortgaged with so much room to grow and increase house prices Western Europe averages around 50% borrowing on the property market.
 
Strong Rental Market 6-8% gross rental returns
 
Low Buying Costs around 3-4% of purchase price if buy in USA or Spain for example you will have nearer 8-12% buying costs, that is a lot of dead money.
 
Very Strong Local Demand this is key to ensure a strong exit strategy you are looking for a minimum of 60% local buyers in

any development
 
Growing Economy if are going to invest overseas you surely want to invest in an economy that is on the up with much of central and eastern Europe growing at 3-4 times the rate of Western Europe then this is an excellent market to target English speaking local teams that are reliable to manage your investment again this is key to the overall performance of your asset.

So then it is a case of after deciding on the country, deciding on the development and area to invest in.

Why the Czech Republic?
 
*Economic Overview*
 
The Czech Republic’s economy is as strong as ever and shows no sign of slowing down. The Czech National Bank (CNB) is one of the most credible central banks in CEE at this time. The financial markets maturity and strong currency make the Czech Republic an ideal environment for investment. The Czech Republic has one of the highest per capita Foreign Direct Investment (FDI) in continental Europe. With legal and tax reform underway, unemployment rates falling, low interest rates, and a well educated labour force, the Czech Republic has solidified its economic stronghold on the European market.
 
 
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