Investment housing – what should you know before buying a property?

The property market is recovering and mortgages are becoming affordable again. It's no surprise that more and more people are looking for ways to appreciate their property, and investment housing is a very popular choice in the Czech Republic. Rental income brings stable income and, if the owner takes good care of the property, than it also means long-term growth in the value of the home or apartment. Is this completely new territory for you? 

Why consider investment housing? 

Czechs love real estate. No other nation in the world yearns for homeownership as much as the Czechs. It's therefore clear that the Czech real estate market is quite stable and, apart from minor fluctuations, it continues to rise steadily. By renting out your property, you earn a regular passive income and your property continues to increase in value over time. 

Any successful investor will advise you to diversify your portfolio. That means you shouldn't put all your eggs in one basket. Always spread your money across different investment pots. Investment properties can also bring various tax advantages. But to make your property investment a success, there are a few rules to follow. Let's go get 'em!

Choose the right location

Location is a key factor for success. Don't just choose a cheap building plot. Browse the real estate market and think about which cities and areas tend to grow, have good infrastructure, and include good job opportunities. 

Depending on your type of housing, you should also consider the proximity of public transport, schools, shops, and medical facilities. Every detail in the surroundings has an impact on the selling price of the property and thus, of course, on the rent.

An excellent financial plan

Consider all the costs associated with buying and running the property in advance. These are divided into two parts. The former includes the purchase price and financing. Think carefully about which bank you take out your loan with – consider the interest rate, repayment period, and fees. 

Is taking out a mortgage a completely new issue for you? We've prepared a small guide for you here. 

Watch out for the fixed-rate period! Hedge yourself against interest rate increases. Many people were unpleasantly surprised when their fancy 2% fixed interest rate ended and suddenly their mortgage jumped to 6%. The repayment can thus increase by several thousand crowns or even tens of thousands.

And now the second part of the expenses, which are not so obvious at first. These are regular expenses for maintenance, insurance, or taxes. Even these costs can rise unexpectedly over time – for example, the repair fund for a block of flats due to renovations, or property taxes, which have risen by as much as 700% this year in some cities. 

Law is a science in itself!

Do you know all the legislation regarding property rental? Do you know what a model tenancy agreement looks like and what all the rights and obligations of tenants and landlords are? Rest assured, an expert can easily advise you on these matters. You can hire a reliable real estate specialist or lawyer. Trust that this investment will pay you back many times over if things do not go your way. A tax accountant can help you with your taxes and sort everything out for you. 

Thorough inspection of the property

You've found a great location, you like the property. But wait. If you are not a builder, invite a person who can look at your home or flat through a technical lens. This thorough inspection can reveal hidden defects that could subsequently increase maintenance costs and reduce the value of the property. 

Carefully consider the age and condition of the building and the need for renovation or refurbishment. Also take into account the energy efficiency and running costs of the property. Nowadays, A and B class properties are more and more in demand due to energy savings.

Planning the evaluation

If you want to get the most out of your investment, it's important to plan how to appreciate it over time. This means increasing the market value and attractiveness to potential tenants or buyers. Here are some strategies to help you:

- Interior refurbishment – bathroom and kitchen renovations have the biggest impact on the final market price

- Improving energy efficiency – wall insulation, solar panels, or energy-efficient appliances

- Extra amenities – built-in wardrobes and extra storage space, air conditioning, or security features such as alarms, cameras, security doors

- Exterior improvements – stylish garden, outdoor lighting, new façade paint

MODULOS – the ideal choice for investment housing! 

Our MODULOS prefab homes offer several advantages that make them the ideal choice for your investment home. Let's check them out. 

First of all, thanks to our capacity, we're able to build really fast. And thanks to prefabrication, our homes can be built in as little as 5 months, which means speeding up your project!

MODULOS cares about the environment. We use quality certified materials with sustainability and healthy living in mind. These technologies guarantee low energy consumption and operating costs. Thanks to the natural properties of wood and quality construction, our customers do not have to deal with moisture and mould problems in their living spaces. We have written about our sustainable approach in another article here. 

Wanting to rent out an office instead of a family home? Such as experiential stays via AirBNB? Not a problem! Prefab homes can be easily adapted to different needs. Plus, they can easily be expanded with additional modules in the future! 

Due to lower acquisition costs and fast construction, the return on investment is much faster than traditional real estate. Come visit us in Skaštice to see what this type of housing might look like! 

Investment housing can be a profitable and stable source of income if you follow the right principles and plan well. MODULOS prefab homes represent a modern and efficient solution for investors looking for fast returns, eco-friendly living, and flexibility of use.