Fri, 14 Sep 07
After two years in the EU, the Czech Republic property market is quietening down, accordinng to Property Secrets...
This was primarily due to an oversupply in the market that took some time to recover from and resulted in very low growth rates over this period.
The low growth rates combined with the fact that foreigners needed to set up a company in order to purchase property in The Czech Republic made the market unattractive for foreign investors, despite the positive economic situation.
Since the middle of 2006, the Czech property market has started to pick up again, with an average growth rate in Prague of 18%, with some secondary cities seeing up to 40% growth in one year.
Foreigners no longer need to purchase property through a company as they can now simply purchase an EU card giving the same rights as locals.
Finance in The Czech Republic is excellent. 100% LTV mortgages are possible with terms of 30 years. Refinance and non-status mortgages are also available. The Czech Republic enjoys one of the lowest base rates in Europe meaning mortgage rates are very low.
Furthermore, buying costs are very low, being some of the lowest in Europe. The Czech Republic is also in the enviable position of having the best rental market in Central and Eastern Europe.
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