Probably you have noticed that the prices of apartments grew in few past years, especially in Prague. The increasing trend was very significant. The prices of the new apartments in Prague grew by 21.50% in the last 24 months. Currently it seems that the peak could be really close.
At the beginning of August Czech National Bank increased the interest rates after almost 10 years of declining and stagnating trend. The incresing was not too much significant - only 0.20%.
The interest rates of our clients are still below 2% p.a. The several last clients achieved the interest rates in the range between 1.79% p.a. and 1.89% p.a. which is great result due to the slightly increasing trend of the interest rates in the past months.
If you live in the Czech Republic you probably noticed the discussion about another new regulation on the Czech mortgage market and real estate market.
Do you thinking about getting the mortgage loan in the Czech Republic? If you follow the below mentioned step plan it could be easier for you to orientate yourself on the Czech mortgage and real estate market:
Starting 1 April the Czech National Bank regulates mortgages with higher LTV ratio. In practise it means that the banks could provide to the new clients mortgages only up to 90% of a purchase price, resp. a pledge value.
We offen receive questions regarding the tax system in the Czech Republic. Find below the general overview of the taxes that might interest you if you would like to own a property here:
On 1 December 2016 new Act started which has also impact on mortgages for foreigners. Here is a brief overview:
Starting 1 November 2016 the new Act related to the Real Estate Transfer Tax became into force. Before this date a seller and a buyer were abble to agree who will pay the tax for the transfer.
Many changes on the Czech mortgage market are coming this autumn:
