As a foreigner buying property in a different city such as Prague, it's always wise to become familiar with the ins and outs of a particular real estate market. That´s especially true if the market is hundreds of kilometers away. Add to that the fact that the local population probably speaks a different language and has a different culture as well.
To assist you with the seemingly difficult task of purchasing a property as far away as Prague, we've addressed some of the basic issues so that you´re real estate purchase will be as successful as possible.
After all, if it's done correctly, a real estate purchase in Prague can be a great addition to your overall investment portfolio or even for a second home in one of the most historically rich cities in Europe.
Financing the mortgage will be in Czech crown
Financing the mortgage The mortgage for your Prague real estate purchase will undoubtedly be in the local Czech currency (Czech crown). That means that you'll have to convert your local currency into Czech crowns.
Just realize that you the rate you receive can change within days (even minutes) against your foreign currency. You'll also have to pay a certain percentage fee to convert the currency.
If you're not planning to buy a property in Prague at the current time, then you can opt to set up a forward contract so that current rates are guaranteed for a specific time period.
You would only want to consider that option if you believe that the current exchange rate is in your favor but might change for the worse in the future.
Mortgages usually cover up to about 90% of the total purchase price, but banks might request up to 30% down on the property to limit their risk, especially for non-citizens.
Contracts in your mother tongue
Contracts in a foreign language Unless you're fluent in Czech, you should have any and all contracts translated into your mother tongue; otherwise, you're taking a huge risk.
Don't settle for having your Czech real estate agent or lawyer simply review the contract with you in your language. Insist upon a translated version, ideally from a source that has no ulterior motives (i.e. seller's real estate agent or lawyer). It will make your real estate experience in Prague that much more pleasant.
Finding homes for rent and apartments for sale has never been easier when searching on online property sites.
