Investor purchased an Art Nouveau house built at the beginning of the 20th century, located in one of the central areas of Prague – Vršovice - on Holandská Street. Building was in a good condition, the last reconstruction of the facade and interior was carried out in 2011.
The purpose of the purchase was to turn building into a profitable apartment building.
There are 8 apartments with different layouts on the 4th floor: 5 one-bedroom (2 + kk) and 3 two-bedroom (3 + kk). There is also a spacious basement. The total area of the building is 522 m2.
The purchased price of the property was 50 000 000 CZK (1 859 000 €).
Building was successfully leased to an international company that helps international students to relocate to the Czech Republic. The risk of being unable to find a good tenant was minimized due to a constant flow of the students.
The net lease income of the property owner is 2 500 000 CZK per year. Payback period of the invested funds is 23 years. The profit thus reaches 5% per year.
* The profitability of this object is considered average in Prague. You can find more profitable offers with 8% annual investment return.