To Buy or not to Buy
I have been trawling the property websites in Czech looking for a flat, it’s not a very enjoyable way of looking but it’s the only thing we have at the moment. Of course we are looking forward to viewing them when we go in August. I think it is a good thing that naturally we have to let things take their course and move along quite slowly, it has given us a lot of time to think about options. We have come up with many ideas over the months, for a while now we settled on the idea of selling my house here, buying a flat, and therefore freeing up some cash. Then we could rent our flat here and move out to Prague with no property overheads, as the flat would be paid in full. So we are looking at around the 3.3 million Czech Korun. However, this plan was based on the advice my friends and family have given me that I should not step off the property ladder in the UK because if we want to move back it would be too difficult. Just over the last day or so I have been nurturing another idea. I am thinking about the investment opportunity and assessing the housing market in the UK and Prague. So this morning I have looked at a couple of websites to gather some information on projected movement for house prices in the UK, the specialists are saying that although we have had a very strong first quarter, the remaining part of the year will slow dramatically and without going into too much detail it appears that house prices here will increase by about 2% per year for the next 2 years. Having said that, others are saying that they will in fact drop!
So, I am thinking that if the projections in Prague are that property in the centre is likely to increase at a higher rate over the next 2 years then surely it would be better for me to sell up here all together and invest all my money into a flat in Prague? 2 positives are I’d get a bloody lovely flat and make more money! As you know, since Czech joined the EU 2 years ago, the economy has become stronger and house prices have risen steeply. The only thing I can think of which might affect this is the change in tax that will be applied to selling property in Czech, it will increase from 5% to 19% next year! Rather a steep increase, I think. And possibly reducing the number of flats being sold? Or it may be a good thing and increase demand therefore pushing the average price up further? If you have an opinion I would like to hear it.
Link
So, I am thinking that if the projections in Prague are that property in the centre is likely to increase at a higher rate over the next 2 years then surely it would be better for me to sell up here all together and invest all my money into a flat in Prague? 2 positives are I’d get a bloody lovely flat and make more money! As you know, since Czech joined the EU 2 years ago, the economy has become stronger and house prices have risen steeply. The only thing I can think of which might affect this is the change in tax that will be applied to selling property in Czech, it will increase from 5% to 19% next year! Rather a steep increase, I think. And possibly reducing the number of flats being sold? Or it may be a good thing and increase demand therefore pushing the average price up further? If you have an opinion I would like to hear it.
posted by Tyler at 7:48 am
1 Comments:
"If you have an opinion, I'd like to hear it....."
Ok then!
Forget about long term projections. They are usually wrong anyway. Things to think about:
1• Have you got a large amount of capital sitting around in your house??
2• If you left that capital in the propery, and rented it out...and the prices crashed...would that affect your future plans?
My advice...sell the house. But the same flat that you would have in Prague anyway. Bank the rest. No matter what the housing or stock markets do, if it's safely tucked away in the bank, or a 'safe' high interest account you won't loose your money. Take maybe 20% of your profit and invest it in something a little more edgy.
Post a Comment
<< Home