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Beroun, Czech Republic

Discussion in 'Emerging Property in Europe' started by patchoz, Jul 6, 2008.

  1. patchoz

    patchoz New Member

    What are people's thoughts on the up and coming commuter suburb of Beroun south of Prague from an off-plan investment point of view?
     
  2. How far is it from Prague ? And what is the discount compared to prices in Prague ? And will many companies open offices in this suburb ? Just a number of question to answer before making such an investment.
     
  3. Magellan

    Magellan New Member

    Nice location, it's about half an hour out by car isn't it?
     
  4. soabu

    soabu New Member

    yes, it is about 20 mins by car - I have proceeded to purchase a 1 bed off-plan unit. New rail tunnel construction will be complete in a year or so cutting commuting time down to 18 minutes.
    The growth of nearby Prague 5 as a business district will boost Beroun as a good investment location. Prices are also beginning to get expensive in Prague centre now so commuter towns such as Beroun should start to see increased demand.
     
  5. amzee

    amzee New Member

    hey guys, i am also looking at Beroun and will be hopefully purchasing a studio in an off plan development near the city centre.....

    however, i have a few questions, apart from the new rail tunnel, what else will make this an attractive investment spot?? i just cant find any other research on this area??
     
  6. soabu

    soabu New Member

    Which development will you be purchasing at in Beroun and for what price psm?

    Few more pointers that make Beroun a decent place to invest:

    20km from Prague 5 district (2nd largest business district)
    Companies with major presence - Mitsibishi Electric, Adobe, Siemens
    30% cheaper than Prague
    Fastest growing commuter town in Czech Republic in terms of population
    Strategic location along the D5 motorway
    Beroun offers the best standard of living in Czech Republic (national newspaper)

    I hope this helps!
     
  7. amzee

    amzee New Member

    hey there

    thanks for your message, i am looking at the blue gardens development there and possibally purchasing a studio there.

    I have been told that the train line will not be complete till 2012 and the devlopment will be complete by 2010.....

    i dont know the price psf....however i know that a studio around 28-31m2 is between 67-74K....

    what type of capital appreciation do you think that i would be looking at during resale?? i was told 20%/year.....i was also told that this is a long term investment and would have to keep for around 5 years (to avoid capital gains tax etc)...

    it looks like a great investment at the moment - however still unsure as there isnt much information out there...

    any help would be appreciated..
     
  8. soabu

    soabu New Member

    20% pa sounds reasonable
    It would definitely make sense to hold the asset for 5+ years to take advantage of the growth of this area for several key reasons including the train line and the capital gain. The only factor that would prevent this is if the rental market does not mature enough to allow a decent LTV upon completion (I would be looking to achieve up to 100% but dont want the rent to be significantly under mortgage payments!).

    I paid CZK 43,000 psf in the Berounske Strane development which is city centre - this was valued at 47,000 psf.
     
  9. amzee

    amzee New Member

    soabu,

    thank you for your reply, sorry it has been a while, but work conditions at the moment dont allow me to get on the net at the moment...

    anyways, thought that i would let you know that i have purchased a studio at blue gardens and am really pleased with the investment.

    apologies for my lack of knowledge but what is LTV? and how does it work in relation to what you have quoted?

    i am willing to keep this as a long term investment to take advantage of the capital appreciation and also the resale market. hopefully by that time there will be a strong resale market withing the area....

    i have heard recently that the train line wont be operational until 2016 - do you think that this would be a significant problem for us?

    PM if you like.....im sure that this will be a great little investment.

    Amzee
     
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