PragueBuzz!

Since Velvet Revolution, real estate price has soared causing the ratio of flat’s prices and average income to be among the highest in Europe. But this tidbit of information doesn’t discourage you one bit, and you have finally decided to jump into this housing frenzy and get ready to be swept off your feet by newly built, freshly painted blocks of concretes you’ll call home-sweet-home? This post guides you through some of the ups and downs of Prague’s housing market and else where in the Czech Republic.

Oh sellers, where art thou?

Unless you can conjure flats out of your hat like rabbits, you need the masterminds who produce duh!

 1. Construction companies- If you are looking for new apartments, your best bet lies with construction companies which build and sell these apartments. Remember to hurry up as purchases are usually made before constructions even start. Once I reserved a flat built at a new construction site at Chodov but later had to cancel it. My broker was more than happy to cancel my reservation because he can hike up the prices 10 to 20% more and still find another reserver on the spot.

 2.  Real estate  agencies and private advertisements - If you don’t lust after new apartments, have more time to shop around and desire for a specific locality, then go to Tesco or Bata and buy a good pair of shoes, and you’ll be ready to go out on a flat hunt on your own.

How to finance your apartment?

Apartments are sold in the Czech Republic through private and cooperative ownership.

1. Private ownership- New apartments are usually sold as private ownership. This legal form benefits if you don’t have enough cash–well who does–and would like to use your new apartment as collateral for your mortgage. Small housing development firms, which don’t have big cash flow, often demand large down-payment up front in exchange for cheaper prices.

2. Cooperative ownership - If you can cough of cash, you should look for apartments sold as cooperative ownership. These apartments cannot be used as mortgage collaterals, thus 10 to 20 % cheaper than similar apartments of private ownership. For example, if this “Thief of the Century” guy buys a flat, he will go for cooperative ownership given his 500 millions crown budget. However he will stick in the forest and tunnel for a while to come.

Now comes the most important question: where will you live?

Where to live?

Basic criteria includes neighborhood condition, public and personal transportation availability,  distance and ease of commuting to work and to grocery shops or supermarkets, school for your children and surrounding nightlife.

I hope you find my article useful, and I wish you luck in your quest to become Pan/Pani Own-A-Flat.

Resources

• www.sreality.cz
• ads and free magazines at newspaper street racks.

Note: The author of this article is Jan S. He is a damn lucky owner of a cooperative flat in a “pretty” Penalak which will soon have new paint, windows and elevators in a city 30 km east of Prague. He bought this flat for only 1 crown (yup you see it right) from his father through a loophole in the housing system during the confusing transitional period from post-Communist Czech to capitalistic empire wannabe. The author has just dented his bank account to pay off his second newly purchased private-ownership flat at Michle. Where is Michle? From Michle, you can squint your eyes with envy and spot high buildings standing in Budjevice.  Why choose Michle? That because the author can’t embezzle his bank account any more to afford flat at Budjevice.

Ingredients:
-Dough
-Flour
-Sugar
-Butter
-Apple
-Grind nuts
-Raisin or dried fruit

Preparation:
-Heat butter and spread butter liquid to frying pan
-Boil dried fruit and cut into small pieces
-Slice apples
-Thin the dough

Make:
-Add apple, cinnamon, fruit and sugar to the thinned dough
-Roll the doll into cylinder shape and place on the pan.
-Switch oven to medium temp and bake for 25 minutes