Do you have free funds and would you like to invest them? Can you repay a mortgage of several thousand dollars every month?
Do you want to leave your descendants a nice heritage? If you answer yes at least once, you are well on your way to becoming a property owner.
It doesn’t matter if you are buying an apartment, a house, a villa, a building plot or a piece of meadow outside the city. The important thing is that you have decided to invest in the oldest possible investment, real estate.
There is not much to deal with real estate intended for own living. By purchasing it, you solve the housing situation. If you have money left over, you don’t have to limit yourself too much in terms of the size of the property, equipment and accessibility from the center of the village in which the property is located.
Otherwise, when you have only a limited amount, you will choose compromises. If you are buying a property in Prague, it is practical to buy a reality at an accessible distance from the metro station.
For future owners of family houses or villas, it is important where they buy the house. The trend in recent years is to live in a village or in city satellites. Here it is necessary to consider whether commuting to and from school will not burden you and your offspring. From a practical point of view, it is not wise to live in a village without its own means of transport. In this case, mobility gets a completely different perspective. Also read: Do you want a mortgage? Banks look at three factors: creditworthiness, purpose and collateral
You choose different criteria when you want to buy a property to obtain rental funds. First, it should incorporate a calculator and compare all the risks arising from reality as an investment. In some cases, money invested in real estate for the purpose of its further lease could yield a higher return in another type of investment.
It is necessary to pause here. If you are going to invest in real estate, it is advisable to decide in time whether to buy a family house or an apartment. And the apartment has several advantages than a family house.
The apartment is cheaper than a family house with the same living and usable area. By buying a house, you still pay for the land. It is more advantageous to buy a smaller apartment, or a smaller apartment of two than one large one. On the one hand, a small apartment is cheaper and on the other hand you can get a tenant better. Even if you get less money for renting a small apartment, it is attractive enough for certain groups of people. Whether it’s young professionals who left their homeland for the first time and without a mother in their backs, they discover the magic of living. The small apartment is also suitable for seniors or single mothers. Despite the fact that when two people want to start living together, a small apartment is often an ideal option for moving.
For two small apartments you can get a higher income than for a larger apartment. The attractive apartment is up to size two plus one. Apartments with a higher number of rooms are no longer suitable for the above-mentioned target groups. The reason is in most cases the rental price.
Factors threatening investment
For both projects – whether it is the acquisition of one’s own housing or speculation due to rental income – the quality of the property is decisive. Buying an vacated family house or apartment means additional costs. The surroundings of the property are similar. If the property is next to a smoldering power plant, it’s hard to persuade someone to move into reality with their family, in which children suffer from respiratory problems.
It may be similar in the event that there is a motorway in the immediate vicinity of the reality or if the construction of an industrial zone is planned here. It should be the duty of everyone who wants to live to look at the zoning plan.
Economist Vladimír Pikora wrote his own experience with the zoning plan in the book “Everything is different or What they didn’t tell us about pensions, the euro and the future”. As a careful builder, he was informed at the building office. He found out that according to the zoning plan, nothing was going to be built that might bother him in the future. But with the new municipal elections, the zoning plan also changed.
Investing in real estate can be a convenient way to save money. Don’t expect the value of your property – real estate – to increase rapidly over the years. There is a much better chance that it will retain value. Count on higher costs. These include higher operating costs and expenses for necessary reconstruction or modernization.
An important factor is the immediate vicinity of the property. Study of the zoning plan is necessary in any case. Focus on civic amenities. Traveling ten kilometers a day for shopping, entertainment or to see a doctor unnecessarily increases the cost of housing. Both to you, if you intend to live in the property, and to your potential tenants.