Investing in rental properties continues to pay off
Property prices have been rising for several consecutive years, and no significant slowdown or decline is expected in the near future. Land and properties that were unattractive investments a few years ago are now worth 2x as much. Given the strict conditions for obtaining a mortgage, the question arises: is it still worthwhile?
Property investment in 2022
Is it still worthwhile to invest in property in 2022? Many experts question this, as annual returns are currently lower than the rise in the price level (inflation), making property investment appear less attractive. However, as with everything, it is important to look at the issue comprehensively.
At Bohemian Estates, we specialise in property investment, development projects and the management of more than 2,000 flats worth CZK 15 billion. We have access to current data and experience, and simply put, it cannot be stated quite so simply :).
An individual approach is essential
It is not possible to say that property investment either makes sense or does not. An investment is worthwhile when the property is suitable for a particular buyer. Each person needs to be approached individually, especially with regard to their financial situation, the condition of the property and its potential.
You need to be cautious when buying a property to let and planning to finance most of it with a mortgage. On the other hand, if you finance the purchase largely in cash, the situation is considerably different and you can afford to take different risks.
When selecting a property, it is not only the location that matters (rents rise faster in larger cities), but also occupancy, suitable tenants and the condition of the flat after handover. Our data shows that the properties we manage achieve an average occupancy rate of 98%.
Especially when investing spare cash, property investment can be a suitable way to grow your finances and protect them from inflation. You should always proceed with the utmost care, never allow yourself to be pressured into anything and, ideally, invite professionals to assist with the purchase, helping you avoid unprofitable properties and choose the right strategy.
If you are considering buying an investment property but are concerned about making the wrong purchase, we will be happy to help. Simply contact us via the button below and arrange a no-obligation meeting, where we will discuss every detail and work together to find the right investment opportunity.