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Purchase a flat and rent it out

Purchase of an apartment with an aim to rent it out remains one of the attractive ways how to invest your financial means. In the capital Prague there are the highest rents in Czechia, at the same time the flat prices are the highest in country. In regional towns the average price of an 80 sq. meter apartments is 3.2 million CZK, in Prague you have to come up with 7.8 mil. CZK. That is nearly two and a half times more. However long term rent in Prague is also about two times higher than in regional towns. Prague offers higher liquidity of the apartment bought as an investment, should you decide to sell it. Should your main interest be rental income it would be more effective to invest in regional towns like Ostrava. There you can buy a new apartment for 2.1 million CZK, four times cheaper than in Prague, and you can rent it out for 12 thousand CZK per month - and that is only two times less than in Prague.

In Prague it would be best to buy a two room apartment in the quarters adjacent to centre, or on the outskirts where there is a good transport connection e.g. metro or tram. Your most likely tenants would be young couples that do not have enough money to co-finance the purchase of their own apartment. The banks are no longer ready to fully finance the purchase with mortgage. If you have cash you are at an advantage. If you are looking for a long term rent you should offer your flat unfurnished. The tenant that has purchased furniture into you apartment would be less inclined to move to another flat. If you want to use your apartment for short term rentals you have to furnish it. You will be getting higher monthly income, you just have to spend more time to service the flat.