Conti Financial Services Limited has launched a residential mortgage scheme for the Czech Republic.
Alan Goss, regional manager for Eastern Europe at Conti, says: We have entered the Czech Republic because the political and economic situation there is sound, we understand the buying and lending processes for both investors and Czech nationals and the property market is increasingly active there.
“It is both a safe and exciting country – pricing levels are good and I expect prices to increase over the medium term.
There is a lot of interest in the media about property purchase in Eastern Europe including the Czech Republic.
Property prices in the Czech Republic are often significantly lower than in other more developed markets such as Spain and France.
This would indicate that there is plenty of room for property prices to rise as demand grows.
The property market in Eastern Europe is not as developed as in other regions and there is no guarantee on future returns.
Mortgage finance is available. Loans are denominated in Czech Crowns, and can be taken out for terms of up to 20 years, with a maximum loan-to-value of 85%.
Some investors are buying property off plan; with this type of transaction the lender will make their loan available when the property is finished.
Due to the low prices in certain areas of the Czech Republic it may sometimes be easier to raise the capital in the UK for the purchase.
Whichever way you raise the finance the main safeguard will be to obtain independent advice from a qualified lawyer.
Independent advice can also be obtained from an independent local valuer, who can give advice on the quality of construction and a guide to property value.
In the near future , details regarding a new residential mortgage scheme for Slovakia will be announced.