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Odeon, Most, Czech Republic
An unbelievably cheap Czech property investment opportunity - with prices little above construction cost (only 1,000 euros/sqm).
Summary
Odeon is a unique development right in the heart of the Czech city of Most. The residential part of the development sits on top of Mosts best shopping centre that was built by the same developer.
The developer has already made their money from the sale of the commercial part of the project. They are now selling the remaining apartments in the residential part, exclusively through us, at prices little more than the cost of construction.
Odeon delivers a relatively high quality standard of living and is situated directly on Mosts main town square. Many of the apartments look on to the town square and to the surrounding countryside, making this a truely unique location in the city.
Construction cost prices!
Discounts off list price of 10%
Central location on the town square with views to the surrounding countryside
Apartments are well designed and very suitable for rentals
Low entry costs with prices from just 44,000
Great transport links
Czech mortgages are the best in Central & Eastern Europe
The key to this deal (like most good deals) is the combination of a great location (on the main town square) and excellent prices (at construction cost). This is simple but effective formula has stood the test of time and made many property investors substantially wealthy.
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Market Analysis
Most is a relatively industrial town, in a region that comprises other industrial towns such as Chomutov and Usti nad Labem. Whilst the city has a primarily industrial base it is also very close to the mountains which form the border with Germany. Its industrial base provides jobs to the locals and money to the local economy.
Much of Mosts accommodation does not match the standard of the Odeon development. Thus anyone who has an above average salary, such as factory manager, will find Odeon a very attractive option.
Due to some recent troubles in a nearby town, called Litvinov, there has been an influx of people moving to Most. These new arrivals all generally rent this has boosted the local rental market and gives us confidence that this particular development will achieve good yields.
After some price falls over the last year the property market in Most is starting to stabilise. Government figures report that last quarter prices grew by 2.8%.
Some quick facts/reasons why investing in the Czech Republic and Most really adds up:
- continued economic success, and reduced taxes, is pumping huge amounts of money into peoples pockets
- low risk blue chip location
- very low property buying costs
- great mortgage finance
-- some of the lowest base rates in Europe
-- 80-90% LTV available
- best and most established rental market in CEE
- healthy capital growth rates expected
- no need for an EU card or company straightforward buying process
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Prices
| Prices | Very low prices, just above construction cost:
1.3m 5.1m CZK (43,000 - 171,000) |
| Discount off list price | 10% |
| Payment terms | Units are completed.
Your deposit will be the difference between the mortgage and the purchase price. |
| Finders Fee | nil |
| Legal Fees | 29,750 CZK (inc VAT) per unit |
Price Comparisons
Given the unique location of the Odeon development in Most it is very difficult to find comparable developments. Much of the accommodation in the area is of both an inferior quality and location.
Prices in the Odeon range from 22,500 CZK/sqm to 37,000 CZK/sqm (average 30,000 CZK/sqm) this is not including balconies, garages or VAT. Three apartments in our list from the development have balconies between 30-50sqm which increases the apparent average of the prices.
| Development | Typical prices (without VAT & garages) | Price difference | Comments |
| Odeon | 22,500 to 37,000 CZK/sqm | - | | |
| Csl. Armady | ~33,000 CZK/sqm | 10% | Worse location, similar quality, larger units. |
Our prices for the Odeon development include a 10% discount from the developers list price.
As the developer has already made the majority of their money building the commercial shopping centre attached to the residential part they can afford to sell the units at prices little over construction cost so you know youre getting a good deal.
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Development
The Odeon residence is divided into 3 blocks.
On the ground floor there are retail units, offering coffee shops and other services. The first two residential floors (3rd and 4th level) comprise duplex apartments, while the 5th 8th level comprise apartments from studios to 3 bedrooms. All apartments have a balcony or a terrace. The 9th and 10th floors have apartments with much larger terraces.
Many apartments have views over Hnevn castle as well as ibenk park.
The development faces on to the main square (1. Nmest) and the theatre.
A big advantage is the proximity of the Central Most shopping centre, with all kind of shops - fashion, sport, shoes, dry-cleaners, supermarket and boutiques as well as restaurants and other services.
All units have private storage space and underground parking spaces are available.
The purchase of parking is not compulsory on this development although it is very important both from a rental and resale perspective with the ever increasing number of Czechs owning a car. Furthermore, we can often rent parking spaces out separately at higher yields than you can get for the apartment, thus long term its always a good idea to purchase a parking space.
Kitchens are not included in the purchase price. We have our own in house kitchen designer who will ensure each apartment is fitted out with a suitable kitchen. Current estimates indicate that one should budget around 120,000to 150,000 CZK for a good quality kitchen (depending on the size and shape). Sim Property Group has a full program available for the sourcing, design and installation of kitchens at a very competitive price.
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Mortgages
The Czech Republic has the best (and easiest to obtain) finance available in the whole of Central and Eastern Europe, as well as some of the lowest base rates in Europe.
| Type | Rate |
| LTV | 80-90% typical |
| Interest Rate | Currently around 5.5% |
| Term | Up to 30 years |
Refinance and non-status mortgages are also available (subject to status) in the Czech Republic.
Interest only mortgages are not currently available in the Czech Republic.
The finance market for foreigners in the Czech Republic is developing all the time and thus refinancing at a high price in the future should be relatively straight forward.
Please contact us for a quick and easy mortgage quote.
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Rentals
Not only is the project unique and in an excellent and desirable location in the centre of the city, but the recent influx of people to the city has helped lift the rental market.
The result is the yields are better than in Prague.
All units are quite compactly designed and thus are efficient for rentals.
Looking at current comparable rental prices in the area we predict that a typical unit will rent at around 150-160 CZK/sqm/mth.
This gives typical expected yields of around 6% (unit dependent).
As the development becomes more established in the area and the Czech economic outlook improves we expect these numbers to increase.
Sim Property Group has a full rental program in place to take care of the Letting & Management aspects of your property. In addition we also have our own Czech real estate agency which facilitates all of our lettings and resales.
Download:
Investment Report,
Price Spreadsheet and
Floor Plans.
Register
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