Thanks to our experience with financing development projects, we can help you set up a mortgage that best suits your needs, as well as your purchase schedule.
With us, the mortgage is part of the whole process – from selecting an investment apartment to renting it out and property management.
|
1x apartment cash |
4x apartment cash and use of financial leverage |
|
| Total value of assets at the beginning |
8 000 000 CZK |
4 x 8 000 000 Kč = 32 000 000 CZK |
| Growth in real estate prices |
6 % |
6 % |
| Average mortgage interest rate |
0 % |
3,50 % |
| Mortgage maturity (years) |
0 |
30 |
| Property holding period (years) |
10 |
10 |
| Investor's deposit |
8 000 000 CZK |
8 000 000 CZK |
| Loan balance after 10 years |
– |
18 940 000 CZK |
| Property value after 10 years |
14 313 000 CZK |
57 252 000 CZK |
| Net assets after 10 years |
14 313 000 CZK |
38 312 000 CZK |
| Net profit compared to deposit after 10 years |
6 313 000 CZK |
30 312 000 CZK |
| Return on equity |
6 % |
18 % |
What does financial leverage look like in practice? A client who invested CZK 770,000 of his own funds in a Waltrovka apartment in 2017 has seen his capital grow by 32.5% per year. See the case study →
Reality: A mortgage is not debt, but leverage. It allows you to own more property sooner—and inflation devalues debt, not property.
Reality: The apartment is yours from day one. The bank only has a lien – you have the increase in value.
Reality: Without a mortgage, you deprive yourself of leverage that can increase the value of your capital 2–4 times faster. Smart debt is a tool, not a trap.
Reality: Interest is the price for the opportunity to own 100% of the assets with minority capital. In addition, interest can be effectively deducted from taxes.
Reality: You can insure against risk. But even if you do, the property remains yours—and its value continues to grow.
Reality: When you divide the same cash among several apartments and use a mortgage, your assets grow exponentially faster.
Reality: Inflation increases the value of real estate and reduces the value of debt. High rates are not permanent, but property remains.
Reality: Today, mortgages can be set up flexibly – with special repayments, fixed-rate periods, and tax benefits. We tailor mortgages to suit your needs.
Reality: How you work with money is more important. Those who know how to use leverage will earn more even with a smaller income.
Reality: This means you lose leverage. The capital you put into repayments is more effectively reinvested—and thus earns more than interest.
We are an experienced team that understands development projects. We have direct links to developers – we know the terms, procedures, and specifics. We are on your side – we will advise, assist, and arrange everything for you.
We will also be happy to help you with a mortgage for your own home.
You deal with one specific person who guides you through the entire process from start to finish.
We provide all services, including administration and consulting, free of charge.
We can also handle more complex situations (self-employed individuals, multiple sources of income, foreign clients).
We most often invest in 1+kk (studio) apartments priced from CZK 6 500 000 to 8 000 000, or 2+kk (one-bedroom) apartments priced from CZK 8 000 000 to 11 000 000. When investing through our company, which also handles the search and the preparation of the property, you should budget for the following costs:
A simple rule says that as an individual you always get a better loan and lower taxation than when buying apartments through a company set up for that purpose. Each option has its merits.
Individual: The interest rate is roughly 1.5% lower and the loan is usually 10 – 15 years longer, so the instalment is much lower overall. On top of that, income tax is usually zero for the first 12 years. Rental income keeps improving your creditworthiness and helps you obtain further loans you may want to use for additional purchases.
Company: The main advantage is asset protection – if another company or trade of yours runs into trouble, the assets held here are protected. The main disadvantage is the double taxation of income: first 21% corporate income tax, and then another 15% when the money is transferred to you.
Approximately 1 month; most loans are signed directly in our office.
Yes, gladly.
We can work with more complex situations too (self-employed applicants, several sources of income, foreign clients).
Nothing; all services including the administration and advice are provided free of charge.
